Store Front Vs Executive Suite

[Kbreezy]

Hey everyone,

I'm considering different office space options and am weighing the pros and cons of choosing a retail strip mall vs just leasing a suite. Suggestions?

 

[djs]

Simple... An executive suite is a good place to meet clients, do your work, make phone calls. So is a retail'ish office space.

There are 2 distinct differences. An executive suite usually doesn't allow you to do any branding of your agency. In other words, people driving down the street aren't going to see you and then when they see your ad, think 'Oh, I should call'. This branding is very important to carriers and over time, it will be important to you.

On the other hand, even a nicely furnished executive suite will cost considerably less than any sort of retail space. Far less when you consider outfitting it. You have to think if there is anyway to write enough extra business to pay the extra overhead.

Older, more established agents tend to like the higher profile of either a 'house' or retail type establishment. Newer agents tend to prefer the lower cost of other arrangements.

The norm(?) nowadays seems to be office parks, where you have a front door from the parking lot, it's not really retail (to expensive) but it's far more convenient then an executive suite on the 3rd floor of a building where the client walks by 4 other agencies on his way to yours.

The other thing to consider is the type of client you want. Retail strip mall offices will bring you extra business, but it tends to be more of the cash paying type of client, who tends to have more lapses and more claims.

Location decisions need to be part of the overall business plan. Pretty hard for someone to say what is best without putting it context of where and why.

Dan

 

[Kbreezy]

Thanks. I'm wondering if the walk in traffic will supplement my prospecting activities enough to cover the higher costs. Maybe a billboard will do the same?

 

[somarco]

If you are selling auto, you might get walk in traffic, especially if you have a State Farm or Allstate sign out front. Other lines, you will get little or no traffic.

Most of the foot traffic will be tire kickers, no matter which lines you write.