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Like-minded Reno business owners cut expenses by co-locating
By Kara LaPoint • klapoint@rgj.com • August 8, 2010
When Karen Woods, co-owner of the Sleep Shop mattress store, came to her friend Morgan Tiar's EcoReno shop one day for coffee, she told her she was looking
for a new business space. "Why don't you move in here?" Tiar asked.
EcoReno and the Sleep Shop are among several small businesses around Reno that have co-located to combat effects of the recession. Discology and the Truckee
River Gallery, and Rockabye and Baboo Children's Clothing are others.
Owners say co-locating was a means to stay afloat but has been beneficial beyond what they initially anticipated.
Two of a kind
Tiar, 33, who moved her EcoReno shop to South Virginia Street from Stewart Street about a year ago, said asking the 60-year-old Woods to co-locate was a
natural move. The businesses have similar products -- EcoReno sells eco-friendly household products and Woods' mattresses are made of organic materials -- and
also share the same goal: a sustainable community.
The co-locations of both Rockabye/Baboo and Discology/Truckee River Gallery also were based on similarities.
Emily Reid, who opened Rockabye in 2006, has shared her 1,635-square-foot space in the Plumgate Shopping Center with Valerie Curtis, owner of Baboo
Children's Clothing, since March. The two co-located as a means to combat the recession, but Reid says now it was what they "should have done from the
beginning."
Again, she said, it just makes sense. Reid sells children's furniture, toys and gear. Curtis sells the clothing.
Since co-locating, the two remain separate entities, but have combined their items into one store, Rockabboo.
"Now, it's more of a one-stop shop," Reid said.
David Calkins, owner of Discology music store, moved in to Mark Hammon's Truckee River Gallery in October 2009.
Calkins thought art and music would pair well under the same roof. And as an art history major, stepping into a role at the gallery was "an easy shoe to fill," he
said.
Many advantages to co-locating
Calkins, Reid, Tiar and Woods cited several benefits of co-locating. Their overhead is lower, the customer base is larger, and they are building flexibility into their
schedules.
For Tiar and Woods, lower costs have allowed them to offer new products, Woods said, as well as lower prices.
"You know, retail is tough, I won't kid you," she said. "Lower overhead is very attractive to both of us."
But what's more, Tiar said, is the increase in customer base since the co-location.
"There's a lot of crossover," she said. "And we do see more traffic."
At Rockabboo, Reid said, customers return more often because of the variety.
Also, each business can lean on the other. Owners sell one another's products. Hours of operation can be extended.
Said Tiar, who has two young children and whose husband works full-time: "We have days off together now. We haven't had in almost two years. Having that
time helps me stay sane."
Tiar and Woods co-own their shops with their husbands but have no other employees.
At Truckee River Gallery, Hammon works another full-time job, so Calkins fills in to extend the hours.
"I'm here six days a week," Calkins said. "That allows him to keep the gallery open more than otherwise would be possible. But, it's really mutually beneficial for
us."
Dennis Banks, owner of Dennis Banks Construction, rents out Rockabboo's space. In a co-location, landlords get two guarantees on a loan, as two parties are
committed and obligated. Banks appreciates the added layer of protection.
The flip side of co-locating
Co-locating has presented challenges and required adjustments. The biggest can be condensing into a smaller space.
Calkins said had to get rid of several items.
"It forced me to re-evaluate my priorities and space allocation," he said. "You get creative."
Reid said she had to get used to sharing responsibilities.
The owners also said they've had to learn about each others' products.
"I had to invest a lot of time in learning about the mattresses," Tiar said. "But it's been fascinating."
The most important thing, Woods said, is to "really work in tandem."
"The trust factor is huge," Calkins said, "...but you've gotta believe two businesses that want to work together have each others' best interest in mind."
So far, the business owners said, co-location has generated additional business for both entities.
"It's gotta be a good thing. I believe it's a great model that maybe doesn't have much precedent, but seems to be working for everyone," Calkins said. "I hope more
people can take advantage of it."
By Kara LaPoint • klapoint@rgj.com • August 8, 2010
When Karen Woods, co-owner of the Sleep Shop mattress store, came to her friend Morgan Tiar's EcoReno shop one day for coffee, she told her she was looking
for a new business space. "Why don't you move in here?" Tiar asked.
EcoReno and the Sleep Shop are among several small businesses around Reno that have co-located to combat effects of the recession. Discology and the Truckee
River Gallery, and Rockabye and Baboo Children's Clothing are others.
Owners say co-locating was a means to stay afloat but has been beneficial beyond what they initially anticipated.
Two of a kind
Tiar, 33, who moved her EcoReno shop to South Virginia Street from Stewart Street about a year ago, said asking the 60-year-old Woods to co-locate was a
natural move. The businesses have similar products -- EcoReno sells eco-friendly household products and Woods' mattresses are made of organic materials -- and
also share the same goal: a sustainable community.
The co-locations of both Rockabye/Baboo and Discology/Truckee River Gallery also were based on similarities.
Emily Reid, who opened Rockabye in 2006, has shared her 1,635-square-foot space in the Plumgate Shopping Center with Valerie Curtis, owner of Baboo
Children's Clothing, since March. The two co-located as a means to combat the recession, but Reid says now it was what they "should have done from the
beginning."
Again, she said, it just makes sense. Reid sells children's furniture, toys and gear. Curtis sells the clothing.
Since co-locating, the two remain separate entities, but have combined their items into one store, Rockabboo.
"Now, it's more of a one-stop shop," Reid said.
David Calkins, owner of Discology music store, moved in to Mark Hammon's Truckee River Gallery in October 2009.
Calkins thought art and music would pair well under the same roof. And as an art history major, stepping into a role at the gallery was "an easy shoe to fill," he
said.
Many advantages to co-locating
Calkins, Reid, Tiar and Woods cited several benefits of co-locating. Their overhead is lower, the customer base is larger, and they are building flexibility into their
schedules.
For Tiar and Woods, lower costs have allowed them to offer new products, Woods said, as well as lower prices.
"You know, retail is tough, I won't kid you," she said. "Lower overhead is very attractive to both of us."
But what's more, Tiar said, is the increase in customer base since the co-location.
"There's a lot of crossover," she said. "And we do see more traffic."
At Rockabboo, Reid said, customers return more often because of the variety.
Also, each business can lean on the other. Owners sell one another's products. Hours of operation can be extended.
Said Tiar, who has two young children and whose husband works full-time: "We have days off together now. We haven't had in almost two years. Having that
time helps me stay sane."
Tiar and Woods co-own their shops with their husbands but have no other employees.
At Truckee River Gallery, Hammon works another full-time job, so Calkins fills in to extend the hours.
"I'm here six days a week," Calkins said. "That allows him to keep the gallery open more than otherwise would be possible. But, it's really mutually beneficial for
us."
Dennis Banks, owner of Dennis Banks Construction, rents out Rockabboo's space. In a co-location, landlords get two guarantees on a loan, as two parties are
committed and obligated. Banks appreciates the added layer of protection.
The flip side of co-locating
Co-locating has presented challenges and required adjustments. The biggest can be condensing into a smaller space.
Calkins said had to get rid of several items.
"It forced me to re-evaluate my priorities and space allocation," he said. "You get creative."
Reid said she had to get used to sharing responsibilities.
The owners also said they've had to learn about each others' products.
"I had to invest a lot of time in learning about the mattresses," Tiar said. "But it's been fascinating."
The most important thing, Woods said, is to "really work in tandem."
"The trust factor is huge," Calkins said, "...but you've gotta believe two businesses that want to work together have each others' best interest in mind."
So far, the business owners said, co-location has generated additional business for both entities.
"It's gotta be a good thing. I believe it's a great model that maybe doesn't have much precedent, but seems to be working for everyone," Calkins said. "I hope more
people can take advantage of it."