Category Archives: shopkeeper

How much does a shopkeeper earn?

Do you believe the news stories about how if you want to keep your high street shops open, shop local?  Or how shopping in independents puts money back into the local economy? Perhaps the message without the maths to back it up makes it all sounds a bit wishy-washy.  So here goes, a real-life example with data from this independent wool shop.

The Sheep Shop is an award-winning LYS (local yarn store) which had its fifth birthday in November.  Last year we took £60,500.  The annual cost for rent, gas, electric, water, phone, broadband, insurance, alarm maintenance, heater maintenance, fire extinguisher checks, not one but two licenses to play music on the radio, waste disposal, web hosting costs, sundries like till rolls, printer ink, loo rolls and teabags, carrier bags, window cleans, anti-moth systems, occasional  repair costs or new shop fixtures, card proceBoxes of stock to unpackssing fees, card machine rental, business membership, knitting magazine subscription fees and advertising (deep breath) came to £15,500.  I’m a bit of a tightwad so don’t think I’m paying over the odds for anything, nor buying anything I don’t need to.

Once the cost of new stock, teacher’s fees and their travel and accommodation costs are factored in there was £9,000 left, then once business loan repayments made, my take-home pay was £5,120.  That just about paid my personal rent and utilities so working tax credits – formerly £50 per week now £25 – is what I exist on, supplemented by my wonderful mother who every so often has surprised me with a big supermarket shop and filled my freezer.  My very lovely boyfriend (who I lured in on an online dating site with a statement that when I make my millions, he will benefit!) patiently puts up with me squawking if he wants lots of meat for dinner and my friends have almost stopped asking me to go anywhere or do anything.

Claiming tax credits when it is my choice to be self-employed used to make me feel a bit uncomfortable before I thought it through.  Several times more than those tax credits is going into the pockets of my (wonderful) teachers alone each week in class fees and if the shop did not exist I suspect it mostly wouldn’t be, so I feel the shop is a net gain to the public purse.Great Britain

Of what the shop sells, 35% of our money goes to local suppliers or teachers. 15% goes to other, truly British suppliers or teachers. 38% more goes to British suppliers but as not all their yarn is made in the UK some of that will end up abroad. Under 13% goes direct to foreign businesses.  Of the other goods and services we buy, where there is a choice, such as servicing the air conditioning, we use local contractors.  Apart from our purchases of things like knit group biscuits from the supermarket next door, and unavoidable things such as card processing fees, nearly all the money Sparkleduck Spiritwe spend is going back into British non-global-corporation hands.

Happily, my business loan has finally been paid off.  My (extremely lovely) landlady, who asks for a reasonable rent compared to most Cambridge premises, will probably still earn more than I do from the shop (with the crazy state of rents, if she turned this shop into flats she’d earn even more).  Shopkeepers talk, and almost every independent shopkeeper I have spoken to is earning less than minimum wage (quite often next to no wage) for a more than full time job.  If more people shopped with us, can you imagine the sparkly rainbows of delight you would be enveloped in every time you shopped in your even-happier-LYS-owner’s shop?

Some indie shops are able to offer online shopping and buying from them means you are keeping a LYS open somewhere.  Buying something you could get in a local shop from a discount online warehouse makes this happen.  The choice is down to you, if you want to keep shops on the high street they need to be shopped in, and every person counts.

How do I choose my yarns?

One of the questions I’m asked most as a shopkeeper is “How do you choose your yarns?”

There are nearly 11,000 yarn brands across the world and nearly 112,000 yarns on the Ravelry database.  33,000 of those are now discontinued but that’s still 79,000 to choose from.  They come in 12 difference thicknesses from thread to super-super-chunky and can be made of all sorts of different fibres.  I do my best to offer a fine selection of yarns to suit those most often asked for.  And then also cover all but the extremes of the range, with lots of choices of fibres for those thicknesses most commonly used, choices to suit those on a budget and those for looking for indulgence.

img_20161102_101709
Malabrigo Rasta, a superchunky South American merino

How do I find them?  People ask for them. The companies I already deal with let me know of their new ones either by a rep visiting toting an exciting big suitcase (or three), or posting me balls, or by good old email.  Other companies are always calling up trying to get their yarns on the shelves.  I keep an eye out when out and about, reading magazines and on Ravelry and listen when people are excited about what yarn they’ve met when they’ve been on trips.   When I feel there is something missing, or something new is needed, I search amongst what I’ve come across or go looking even further (and kick out something no longer popular to make room for it).

Britain dominated the world with its wool and after a bit of a bumpy ride we have an enviable choice of wools again. If a British yarn looks and feels great and is a reasonable price, it’s a winner.  For environmental, patriotic and economic reasons, I’d rather get yarn from the UK.  Merino sheep don’t much like our weather, so not all our wool is British.  And not all yarns that people want are made in Britain, so for those I go wholesalers who import lots of different yarns from abroad.  If no UK wholesaler imports a desired yarn then it doesn’t get a home – the unpredictable import duties, shipping fees, currency exchange fees and exchange rates put it out of reach.

013-3
Naked Wool Shetland DK (British)

There are lots of different wholesalers, and they usually have a minimum order of at least a couple of hundred pounds (at wholesale cost).  So I can’t just buy a small amount here or there, at least not without paying a fortune in small order charges and postage costs. Because no one company has a complete range of yarns I think worth stocking, (and even if it did, it would be dangerous to put all eggs in one basket) I go to several.  Not too many though, because then we’re in must-meet-minimum-order territory and have to wait a long time for enough yarn to have gone to make it worth reordering. That’s why a LYS can’t order any and every yarn requested.

Now most yarns come in different colours – usually between 10 to 20 colours but a choice of 60 colours is not uncommon, and some have more than 150.  Almost all yarns have to be ordered in packs of 10 per colour. The main room of The Sheep Shop is a little over 400 square feet big so if I were to order for every yarn here a pack of every colour there is, I’d need the shop to be a Tardis (I’d like the shop to be a Tardis!).  Some of the shelving here does house 30 or more colours of one yarn.  Most yarns have certain popular colours and I keep a rotating range in of other colours.

That’s it folks, it’s a balance between offering a wide selection of types of yarn, a wide choice of colours and keeping enough in stock for people who need a large quantity of one colour, without yarn exploding out the windows or money haemorrhaging away.  All good fun.

panorama1s