Starting a prospecting store

[stevo]

I was made redundant a few months ago so I am currently unemployed and I have been thinking about it for quite some time and that is opening a prospecting store here in Bathurst. The only other local competition is at Mudgee that I know of and of course theres the internet stores.
Now Bathurst being the the gateway to the goldfields out here in the central west I got to thinking that a business as such could probably do an ok trade, and the amount of tourists flooding out this way in the last ten years or so is staggering, would like others to let me know if you think this would be a viable idea...thanks.

 

[TheFossickingKid]

That would be awesome I would definitely go to the store if you opened it.

 

[dwt]

Ya never know to you have a go, i allways thought about hire gear for weekenders, deposit, fixed rate, robust gear, could be a dollar in it. Touchy subject with detectors though, but there would be ways around i guess.
I'd hire gear of you if i was cruising through

 

[stevo]

I have had previously talked about the thought of opening a store with family but they seem to think it wouldn't do well. Also dwt what do you mean about "Touchy subject with detectors though, but there would be ways around i guess".

 

[Goldtarget]

As long as your hearts in it you can do it. In fact you can do anything. I was captivated by the idea of running an enterprise in the industry I was working in, took the leap and didn't die wondering. My upfront advice is have a bit of cash behind you, be the best not the biggest, take time away from things (1 day a month I switched off the phone and did zero to do with the business) as things can consume you, and try and find a mentor. By that last part I mean someone other than a partner, friend or relative that you can communicate with about your enterprise. Otherwise you'll go mad. It will be harder than you think because you'll end up wearing so many different hats performing so many different roles but if you really want it no barrier will stop you. There are some excellent books out there and make friends with a good accountant, someone who understands you and the type of business, paying for good advice is the go, before you even start. Cheers mate and good luck.

 

[BrisJoe]

If your house is close to the town centre, you could run it from your garage, this will save the overheads of renting a shop front, plus you will be able to tax deduct a portion or rent/mortgage and power bills to the business. At least until things kick off and get going to justify forking out for retail space
Plus you would be able to offer after hours service for anybody rolling through town just after normal business hours and weekends when traditional shops are shut. (try getting hold of Clermont detectors after 10am on a sat lol)

Is there a "peak" gold season down there, like the annual grey nomad parade rolling through town? or is it fairly consistant all year around?
Offering a hiring service on detectors would be a way to get started, once the business name gets out there, then look at stocking detectors for sale, would be a way to test the waters as well before investing a huge amount of money on floor stock

 

[loamer]

Spoken to the detector manufacturers yet? That would be Number 1 on my list in order to get an idea if they are willing to supply. If you buy them yourself then hire, there are big problems with fake IDs being used to hire, then ta ta detectors. Some places are now demanding the full price, say $5000 + on a credit card before hiring that is redeemed after return of hire.

 

[Teemore]

Retail or rentals can be a fickle beast ....
Always find it strange that one of the biggest Goldfields areas in Victoria (Ballarat) doesn't have a dedicated Prospecting retailer ... yes EE Day sell stuff but more as a sideline. Bendigo has 2, the Minelab and non Minelab guys.
Think there are major issues in getting Minelab approval to sell there stuff, their dealership circle seems pretty limited.
Good luck whichever way you go,
Cheers Tom

ps I was also made redundant just over 2 months ago BUT I was hanging out for it (better being paid out rather than just retiring, big $$$$ win for me) .... still aren't enough hors in the day.

 

[stevo]

Honestly the hire thing I wouldn't do, would rather sell them one..lol. Detectors would only be a small part of the business, I think there is not much to be made on a detector sale going by prices, it looks to be a very cut throat section of the market. I would be mainly looking at selling fossicking gear.. sluices high/low/wall bankers pans picks pumps tools and maybe a bit of camping gear on the side.

 

[dwt]

I have had previously talked about the thought of opening a store with family but they seem to think it wouldn't do well. Also dwt what do you mean about "Touchy subject with detectors though, but there would be ways around i guess".

Only in the sense of brand names, what coils, ect, could be a expensive exercise for hire, then add the fact that you hire out and dont get your item back or it returns damaged internally, as in the ways around, a deal with detector manufactures.
From memory there was a thread posted a while ago a 5000 was hired out and never returned, and the id given was a fake, "touchy subject"
But if your not hiring.... no worries

 

[thedigger]

Try 2 5000,and they know where he is and they can not do anything about it.
The Digger

 

[dwt]

 

[Goldtarget]

As part of due diligence pick up the phone and talk to the guys who do it now. .... sounds silly but they will be able to go into detail about things you need to know. You might be surprised at their response. Not everyone will take it as competition, perhaps someone is looking to expand our size up new opportunities. In your "its a dream" phase (not meant to offend you) you will see two things happen. Firstly from every angle, even inside you will come doubt and doom sayers. They do not see your dream. They see how the bills will be paid and give you every reason why it will fail, and some even downright determined to see you fail. Par for the course. But somewhere out there are two things you need to find. First is those examples where it's working. Investigate them. Second is someone who will help you with your dream, someone selfless that wants to see you succeed. It will take time and maybe a series of these people but they do exist and they will help you.
Secondly at some point you will have to commit or leave your dream. This will be a decision made with many considerations. Success means many different things but at some point the dream must become a reality or stay a dream. No matter what the decision is yours and yours alone to make.

 

[noncents]

I think its a good idea, you're near the NSW golden triangle Hill end, Sofala and Ophir. Plus a handfull of other areas. Just go to our DIY page and have a look at all the stuff that people have made and you can sell for them eg Walbankers, dry blowers , rock crushers etc.

 

[dwt]

As part of due diligence pick up the phone and talk to the guys who do it now. .... sounds silly but they will be able to go into detail about things you need to know. You might be surprised at their response. Not everyone will take it as competition, perhaps someone is looking to expand our size up new opportunities. In your "its a dream" phase (not meant to offend you) you will see two things happen. Firstly from every angle, even inside you will come doubt and doom sayers. They do not see your dream. They see how the bills will be paid and give you every reason why it will fail, and some even downright determined to see you fail. Par for the course. But somewhere out there are two things you need to find. First is those examples where it's working. Investigate them. Second is someone who will help you with your dream, someone selfless that wants to see you succeed. It will take time and maybe a series of these people but they do exist and they will help you.
Secondly at some point you will have to commit or leave your dream. This will be a decision made with many considerations. Success means many different things but at some point the dream must become a reality or stay a dream. No matter what the decision is yours and yours alone to make.

100% spot on GT

 

[Narrawa]

What would work better in that area, is a shop backed tour guide come detector hire/ mobile setup. Your within driving distance from home, and your shop is in the back of your truck/4x4/trailer.
Day trips or weekends to each of those areas training/hiring selling your goods and services.

I did this for a period in the NSW golden triangle, so i know it works, and just the money from training was well worth it when it all comes together. I used to train those who booked in through the shop, the shop would ring me and give me the details of those who booked and the dates and place. I was payed by the shop as the customer would prepay through the shop on booking. (shop takes its cut)
I hired out my 4500, and walked beside it all day training those that hired it. You get the hire fee of the detector per day + the training fee per day. If the detector was hired from the shop...you get the training fee. You become their shadow from 9-5pm. However if you have several clients, you float between them which gives them time to put into practice a little of what they have learned. information overload should be avoided given many of these people have never held a detector before. Having a partner who is also a detectorist is an advantage in times of multiple clients.

If your backed by a reputable shop front, you have all the sundries that you'd need out in the field to sell.
Make sure your up to date with the latest detectors tho, coin and relic machines, and not just gold detectors as some folk will bring their own to be trained with. Be ready and have a good answer for those who cannot find gold with a cross-over detector like the 705 while others with dedicated gold detectors find gold on day one.
A reputable shop will reward your sales, be it money or gear.??

If you have a wad of money behind you tho, than owning the detectors and gear outright would be a better way to go...you are then, your own boss.

Know your goldfields and know them well, as 100% hit rate = return business. Keep in touch with the locals round these fields...having sandwiches and drinks bought out to you from the local Pub because of the folk you bring to the town who stay/book accommodation, is just icing on the cake.

Just another avenue for you to think about, but which ever way you go, do your homework. Its your dream.

Good luck.

PS, im in WA prospecting with folks i met and trained 4 yrs ago back in Stuart Town...this is our 3 trip together over here, and regular get together's happen when we are back home in NSW with others we trained and know. Gold can be found in the ground, but also in the friendships you make along the way.

 

[stevo]

Some really good ideas there.

 

[Jaros]

What would work better in that area, is a shop backed tour guide come detector hire/ mobile setup. Your within driving distance from home, and your shop is in the back of your truck/4x4/trailer.
Day trips or weekends to each of those areas training/hiring selling your goods and services.

I did this for a period in the NSW golden triangle, so i know it works, and just the money from training was well worth it when it all comes together. I used to train those who booked in through the shop, the shop would ring me and give me the details of those who booked and the dates and place. I was payed by the shop as the customer would prepay through the shop on booking. (shop takes its cut)
I hired out my 4500, and walked beside it all day training those that hired it. You get the hire fee of the detector per day + the training fee per day. If the detector was hired from the shop...you get the training fee. You become their shadow from 9-5pm. However if you have several clients, you float between them which gives them time to put into practice a little of what they have learned. information overload should be avoided given many of these people have never held a detector before. Having a partner who is also a detectorist is an advantage in times of multiple clients.

If your backed by a reputable shop front, you have all the sundries that you'd need out in the field to sell.
Make sure your up to date with the latest detectors tho, coin and relic machines, and not just gold detectors as some folk will bring their own to be trained with. Be ready and have a good answer for those who cannot find gold with a cross-over detector like the 705 while others with dedicated gold detectors find gold on day one.
A reputable shop will reward your sales, be it money or gear.??

If you have a wad of money behind you tho, than owning the detectors and gear outright would be a better way to go...you are then, your own boss.

Know your goldfields and know them well, as 100% hit rate = return business. Keep in touch with the locals round these fields...having sandwiches and drinks bought out to you from the local Pub because of the folk you bring to the town who stay/book accommodation, is just icing on the cake.

Just another avenue for you to think about, but which ever way you go, do your homework. Its your dream.

Good luck.

PS, im in WA prospecting with folks i met and trained 4 yrs ago back in Stuart Town...this is our 3 trip together over here, and regular get together's happen when we are back home in NSW with others we trained and know. Gold can be found in the ground, but also in the friendships you make along the way.

Great article mate, very good reading.

 

[goldtruck59]

Being in business is a hard gig. It kicks you in the guts on a daily basis and staff take your will to live away. I have 55 of them. Ahgggg
But the upshot is you don't have to do anything you don't want and you are your own boss.
So if you have money and I mean to do it properly without hocking yourself too deep, then its up to whether you are prepared to take the gamble on your own ambition.
There are some good points from others here to consider and some good advice.
I have been self employed now for 35 years and I wouldn't have it any other way. Riding the highs and lows is part of the gig.
Stay away from banks if you can and remember once the doors are open, that's it until you sell it or close it.
Good luck with your decision

 

[RedDirtDigger]

Hi Stevo, Jaycar in Bathurst is selling minelab treasure detectors and gear, so they are not an authorised Minelab gold detector/SDC dealership. There was a another Minelab gold detector dealer/rock shop in Bathurst that went bust about 10 years ago after a short life.

I agree that if you have to lease a shop in Bathurst it will not be profitable. Like many businesses in Bathurst like stained glass suppliers and solar/12 volt shops they all run their business from homes because their clients look for them and they don't need street exposure to attract walkins... they just need a super good website/online shop and effective advertising targeted to clients.

Of course if you get a minelab dealership, the shop must be contractually open 5 and 1/2 days a week.

I live 50 km from Bathurst and am being made redundant this Friday.. Maybe I can do some training for you when you open up.
Cheers RDD