After sitting down in a hip coffee shop in the middle of Melbourne, she starts explaining to me that she opened her sex shop about 10 years ago, and back then it was still more regulated and harder to find a neighbourhood or city council that would let you open a shop selling adult toys and vibrators.
She says that she realized that the profit margins on the product she sells are quite small, about 10% profit, so when you own an adult shop you need to make a choice and decide what type of store will you be. The first choice is to be a cheap, ugly sex shop with bad lighting, bad products but with huge profit margins. she said that you can buy sex toys for as cheap as $3 in Asia and resell them for $100!
The 2nd choice, which is the one she made, if to open a classy and welcoming shop. This makes people feel good and safe, and she stocks luxury adult products that help people feel sexier, but of course make her less money since the profit margins are way smaller on these adult items.
Did she make the right decision?
She says yes. Apparently she helped save many marriages over the years, and has many regular thankful customers. She loves her job and brings happiness to the community. She says she had to invest over $150 000 just in decoration to make the shop attractive and noon-seedy.
Wow that’s a lot of money… I understand that the owners of other sex shops in Melbourne owner would just take any old shop and buy the cheapest furniture to save money.