Last Chance Cafe

So I've been a little busy for the past few weeks as I tried to secure a partner for Moda Peligrosa, then failing that, sold it. We all have these brilliant ideas that are 'sure things' if only….

I've been lucky enough to act on many of my ideas, and for this last one (which was a big one for me) was lucky enough to be able to finance it. Yet all business has risk, which is why most people likely to read this are also likely working for somebody else and not for themselves. You have to have a certain willful idiocy about you to reject all the facts that most businesses fail and most investors lose their money.

I built it, and it was good. Great clothes, shoes other stuff. But I couldn't make it fly. I ran into the usual issues running a business: contractors constantly late, unexpected costs, running the bureaucratic gamut needing one document to obtain another, unscrupulous and incompetent vendors. Plus of course, the foreign culture thing.

Advertising was my great failing. I located directly between two universities, which should have provided plenty of opportunities for professional advertising and word of mouth. The problem turned out to be a complete lack of an underground or alternative press. The "newspaper" of the University of Costa Rica is an eight or ten page rag spewing 80 year old socialist propaganda which contained all of three 'presumably' paid advertisements, one of which was by a government institution.

I decided to go for it anyway, but as they took the check they looked at the logo and said it was too risqué. They would need to come and inspect the store to determine whether or not we were selling such subversive items as sex toys. We respectfully retrieved our disc and left. For the record: we did/do not sell such items, though we did offer some rather risqué figurines.

And so time was wasted, and whilst wasting bills became due including salaries and the ever-vigilant government maw needing to devour its pound of flesh. We eventually found our advertising venues, or so we believe, but by then it came down to choices as to what we could spend our budget on, and it became painfully apparent that we needed a fresh injection of cash to push on for the holiday season. Time wore on.

So Moda is dead, long live Moda. The new owner got a steal as long as he knows what to do with it. I got to get out without losing everything (including my car, which just yesterday emerged from eleven—yes eleven, months of overhaul) and live to risk it all another day. I still have another business just started here, but on a much smaller scale. It's an American style hot dog and chili joint with a Brazilian theme called 'Rio Dog,' run by my Brazilian girlfriend. It may be just wacky enough to work.

I'll be leaving the graphic link to Moda Peligrosa over there on the sidebar until I manage to transfer the url to the new owner.

Posted by petefredbob at 11:30 AM | Permalink | Comments (3)

Sunday, sitting here alone in the store listening to the Dandy Warhols. Yesterday was the biggest day we've had since we opened, and though I'd much rather have been selling at full retail, the sale sure has gotten the kids in the door.

The morning was all about gathering up the hangers and sensor tags, filling in stock and just puttering around with the displays. I've got some items that still need to be re-hung and the place needs a good cleaning but, by George that's why I pay my employees more than minimum wage. As a matter of fact tomorrow is the scheduled ninety-day raise for my two originals, which puts them at 150,000 colones a month. Minus 9% to the government- plus my 26% on top to the same corrupt idiots.

That's a whopping $265 each right in their pockets. It's still more money than anybody but the hookers, boiler room phone operators and casino workers bring home- unless you work for the government or a protected industry. Plus I pay for their State medical and retirement insurance, unlike 50% or more of the native employers. My guard's last job was a twelve-hour overnight shift; seven days a week, and his employer paid zilch as far as taxes and insurance went. I think his wife and kids are happier now, but I could be wrong. We've got a sweet employee discount too.

The big news is that I'm in talks with a prospective investor. When you move out of the country, after a while you forget about what you missed in the States. What we would consider a normal selection of goods and a spiffy place to go and buy them is pretty rare around these parts (the bakery around the corner has had an old empty display case and construction materials laying about on the floor since at least July, and about a tenth of the goods that you'd find in any Main Street USA bakery. I go there because they have Coke in the old glass bottles).

The investor is a gringo on the ground here for 13 years or so and managed to make his money locally. He's also my first or second best customer. He likes to come in, have a coffee, buy stuff for his daughter and listen to the music. I think the Violent Femmes pushed him over the edge.

September is the end of the fiscal year here and my accountant has had my books for the last three weeks. I'll be chasing him down this week (probably literally) so I can cut the deal, finally ransom my car back and focus on the new clothing line for Christmas. The old lady's 'Rio Dog' hot dog stand is due to open later next week as well. Iffy though, maybe the week after.

Posted by petefredbob at 11:17 AM | Permalink

It's been three months of crap and this last week full of flake-o-rama screwing around with the web site, but finally it's up. Still needs work but I'm happy with it for today, as today is the first day of our big 50% off sale. As of Friday I fired the last-est designer and had some guy I didn't know come in on Saturday as a last ditch effort. He built it overnight, I paid him, he bought a pair of creepers.

Posted by petefredbob at 04:33 PM | Permalink | Comments (1)

So, doing a photo shoot with four models, hair and makeup sounds like fun. OK, well it was kinda' fun, but damn it was a long day. It seemed like we were working every minute but at the end of the day I was wondering how we didn't have more 'stuff.' This morning the shop is a mess and it's cleaning time.

We did get some pretty good stuff I think; now comes the Photoshop. Then to the webmistress, then to the printer and publications. We did the shoot at the store and because of the lights and whatnot we had to leave the front door open for air. Were we to have been open for business and all those people trying to get in bought stuff, we'd have made a tidy profit. We'll see if any of them come back when we don't have half-dressed models wandering around.

Here's one shot to whet your appetites.

Continue reading "Big Picture Little Picture" »

Posted by petefredbob at 10:35 AM | Permalink

Been struggling this past week to iron out my accounting before it becomes a problem. Well, it's a problem already. I'm using a POS program to sell and inventory my stuff, and it's supposed to be able to export to any number of accounting programs, including the one I have experience with, Quickbooks Pro. Problem is, once I load QB onto my Windows machine, the POS software freezes and hangs. Nobody seems to know why.

With both programs on the same machine you're just supposed to tell the them to talk to each other and presto. The POS software grabs the accounts list from QB and viola. Now I have to load QB on my home computer, configure the accounts and then enter the accounts by hand into the POS software. Without making any mistakes. It kinda sucks.

I've spent the past few days transcribing the end of the day 'z' reports (batches) into a spreadsheet book (I also have seem to lost my ability to configure a damned excel spreadsheet so that some rows total and others don't and duplicating formulas yadda blah- don't get me started on the fucking 'wizard') that I will now attempt to load by hand into QB.

I had planned to start entering my accounting from the day my store opened, but as I think about it, I may start it from the day I spent my first nickel putting the place together back in January. My other option is to run a separate construction company in my own name, then on the day the store opens dump those expenses in as a loan. The head spins. I had almost resigned myself to manually entering all the POS figures into QB at the end of the day, but I think I now understand the Byzantine instructions from the POS software.

On another note, check this out:

If'n any 'all gonna be in San Jose on September 2nd come on down to the Goth Party. We, Moda Peligrosa, are raffling off a pair of boots, which you can see by clicking on the link.

Posted by petefredbob at 05:41 PM | Permalink | Comments (1)

Today has been our busiest day so far. It's a Catholic holiday here in Costa Rica and most of the big companies have the day off, including the banks, but it's not a required 'pay' holiday. That was Monday.

For the past three days or so people have been making the pilgrimage to Cartago and the big church there, which has healing waters. I went last year on a sightseeing trip. I remember then wondering what all the people were doing walking on the pista (highway); then there were the horses. This year my store is on one of the main routes into Cartago and thousands of people have noticed it for the first time. Thank you Jesus.

We're the only place open in our little four-store strip mall, and up until two hours ago the only customer we had was for a return, and they changed their mind and kept the item after we told them how to wash it. Since then it's been pretty busy, though only one big sale and a layaway. Still, I'm calling it a good day.

Posted by petefredbob at 04:45 PM | Permalink

In the comments JP said he wanted to see the blue hair. I tried to save the unsuspecting from the sight, but the photo wouldn't take there, so here 'tis. Can't do anything about the hairline (short of plugs), but at least folks aren't looking at the bald spot any more. Luke still has nothing to worry about.

Update:

My semi-blue-haired partner wants in and may effect an antidote for those whose eyes have glazed over from the first picture.

Posted by petefredbob at 09:33 AM | Permalink | Comments (3)

All right, a day in the life post and a political comment. I'm hiding in my office while my employee shows a customer around the store. I may have newly minted blue hair but I'm still too old (not good looking enough or not gay enough- take your pick) to be a shoe or clothing salesman. Plus she's cuter and the client is a guy. Nuff said. Plus everyone here seems to speak Spanish. Verdad.

Oops. More clients. And they're cute. Be right back.

Continue reading "First Week Complete" »

Posted by petefredbob at 05:44 PM | Permalink | Comments (1)

Opened the doors yesterday, July 17th, 2006. Still working out bugs and training staff but it sure feels good. Typical shakedown cruise problems: video feed not working, computer crashed, backup-ups beeping like crazy when we still had power, neon sign failed in the rain (they'll be out tomorrow to fix it), but all is well on this second day. Mostly.

The lights I installed in the cabinets have to be changed to the tune of $600 as they're heating up too much. I need to use low voltage.

The stress gradually drained during the day yesterday and I slept well. The store looks pretty cool and I have a few pictures after the jump if you're interested.

Continue reading "Moda Peligrosa" »

Posted by petefredbob at 04:01 PM | Permalink | Comments (1)

Yeah so, quiet lately, but busy. Couple more pics of the store: First one is an overview with all the lights in place waiting for the mirrors and merchandise racks to be hung.

I was painting the register counter and main tables today, tomorrow more painting to finish the black touch-up on the shelves, then the red. All the inventory is loaded into the database, just waiting for the shoes to actually get here, then I can open. The clothes are pre-hung on the second floor, gee-gaws are waiting for dry and clean shelves.

The projector and screen go in tomorrow, and as far as construction goes after that, all that's left is the coffee bar (and espresso machine, of course). I can open without that though if the shoes get here first.

Here's a partial shot of the front window logo. The ladder was up to run wires and hang speakers. The neon guy will be in early this week to add a blue tube beneath the store name on the main sign and adjust the red tubes below so they light the 'catchphrase' better. It's really cool looking but I'll wait to post a picture until it's finished.

It's been a little over a year and a half since Grandma passed, and my little project wouldn't be possible without her. Grandma always said she'd be my bookeeper if I ever got a running business off the ground, and Gramps would be in heaven hanging out at the coffee bar talking up all the women. Miss you mucho Grams, and thanks for everything. And nudge Gramps for me, will ya?

Posted by petefredbob at 05:19 PM | Permalink | Comments (2)

The internet connection's been so iffy today I feel like I'm back in the early nineties on a walloping 33.6 dial-up connection while AOL dumps me every ten minutes. We'll see how moody it is when I hit the post button. I also can't begin to tell you how loud it's seemed in the shop today. Even though other days of sawing and grinding steel must have been just as loud, today is driving me nuts for some reason. It should be the final day of this particular ruckus. Monday starts a different type of ruckus as they begin to construct my office cage.

Continue reading "Background Noise" »

Posted by petefredbob at 07:16 PM | Permalink

Big day at the store today as the second floor is starting to go up. I have pictures to upload later as I forgot to bring the flash reader. I got to stand under a many hundred pound staircase like superman as three of us hoisted it into place. I really was wondering if I would die if the strap broke. They've pre-built the contraption and I'm not sure if they have all of the pieces ready back at the shop. It would have made sense to deliver all of it last night to my frenzied imagination. If they do it will only be another couple of days till finished. If not…well… this is Latin America. Tomorrow I'll find out if I have another contractor as I watch him install the bathroom fixtures and try to determine his competence.

Internet went in two days ago, but was balky yesterday. I'm trying to use the wireless router with my main IP address, and it did work for a little bit. But I did some stuff using the laptop -connected directly to the modem- and it seems the ISP no le gusta. I'm back to the laptop for now which is fine as no other machines are actually here yet. Thus, my first 'store blog.'

Something is held up in customs according to my broker, valued at $300, which I have no idea what it is as I've got nothing worth around three hundred bucks due in at the moment. Of course around here nothing is as it seems and it could be anything. I'll just have to wait and see what the surprise is.

I'm at the point in time where I'm waiting for everything, and everything is going in extreme slow motion. I have basically two more items to make a decision on and buy for the whole shebang; the rest of it is just on its way here. It's like someone is inside my head running around on a little track waving their hands in the air screaming "where the hell is everything?!" while I try to keep a calm demeanor speaking to officials from the various bureaucracies, contractors and suppliers.

The guys have packed up and say they'll be back Monday to finish. I now get to go to the car dealer on the extreme other end of San Jose in traffic to get my little French car her first checkup.

Update: pics after the jump

Continue reading "My First Store Blog Entry" »

Posted by petefredbob at 01:35 PM | Permalink | Comments (4)

I'd call it an 80% success rate on this trip. The shoes are on their way, the Goth dolls are on their way, but the clothes are another story. For some reason my supplier, a big name company, wouldn't allow me to deliver a bank check to their headquarters in L.A. They would only take a credit card (way beyond my limit) or a bank transfer. As is wont to happen, my first day back picking up the other bank checks I left their transfer info at home, and wasn't able to get back to the bank until Saturday. Banks don't initiate transfers on Saturdays. At least mine won't.

So, I set up a phone transfer agreement, which won't be active until at least Wednesday. Now I'm reconsidering the vendor. They've got really nice stuff, all the hipsters wear it, but they're at the end of their season, which means I'm scraping the bottom of the barrel for sizes and available stock. The new line is due out in June or July, not a long time to wait, but late even for my delayed opening.

My rep doesn't like phone calls ('Look, I'm usually in a meeting'). I've been instructed to use email only, but when I've done that, I've gotten form letters back, then a real response a day or two later. It's almost like they don't want my business. If I were at the end of my stock, and I had some knucklehead wanting to help clean me out, I'd be on the stick. But then again I'm not working for one of the largest clothing distributors selling to the Hollywood crowd. Maybe I'm not big enough game.

It all comes down to that I'm not going to hit my target opening date, which means I have another week to arrange another supplier or two. Tomorrow is Wednesday, when I check to see if the transfer has been set up; which is usually not the case. For some reason the branch always leaves something out of the application, and the transfer office makes them do it over again. This only gets noticed when I try to 'make' a transfer. What is supposed to take two to four days usually takes about two weeks. Welcome to the nineteenth century.

I did manage to have thin crust pizza at the best pizza parlor in L.A., Casa Bianca in Eagle Rock. We only had to wait an hour for a table. I picked up the iPod too, which last night I connected to the projector downstairs and was blown away by the quality of the video. It ain't hdtv, but from across the room at 102 inches it was completely serviceable. I also picked up the disc containing the logo for the sign from Rodney. Very damn cool.

Back at the ranch, my able crew, led by my Brazilian Amazon, has managed to cut through about a mile of red tape while I was gone. The physical phone lines are installed and only waiting for dial tones and an ADSL signal, the only document I need for opening is a health department inspection certificate, and they've managed to bypass a building permit requirement for the mezzanine, which should be installed by the end of the week. A lesson for all of you, when you need to get stuff done in a stifling bureaucracy, get a hot chick with an accent to do it for you.

Today I sign the contract to buy the shopping bags, which they claim will be ready in a week, as they manufacture them here. So, down to the stretch: fixtures for the bathroom, diamond plate and lights for the shelves, delivery of the inventory/sales register system, mirrors, furniture, mannequins, clothes hangers, office and storeroom construction, assemble mezzanine, floating rear-projection screen, order sign and only about a billion other things. No problemo, no?

Posted by petefredbob at 11:32 AM | Permalink

Busy as a beaver these past few weeks bulldozing through the red tape and lax habits of the locals. Show them that you really need to get something done, and the folks relax even more. Don’t ever show impatience in the checkout line. Or let the car in front of you know you're about to pass him. It's the way it is.

I'm off to the great red white and blue north tomorrow for a few days of business. Today was a typical "oops I'll have to fix that now" day.

I hate those white acoustic ceiling tiles and I had a ceiling full of them. As my shop is going for 'sort-of' an industrial edge, I removed them to expose the roof. I planned to drape black see-through material from the remaining frames to deflect the eye, or if you wind up looking up, extend even further the already 20-foot height. It's at least thirty feet at the peak.

Today the guys came in to hang the material (turns out to be dark green, there is no black left in the country to do the job for under a thousand dollars material cost. The green was $250). I was only supposed to be there for a couple of hours to get them started and to have a meeting with the accountant. Then all kinds of people showed up at the same time. Furniture delivery, loss prevention guys from Sensormatic, the bag people (the kind that make the bags), as well as the accountant and a salesman wanting to make my store sign.

Then it started to rain. Hard. We get rain here. It's started a little early this year, and it's only every other day so far instead of every damned single day, but it's rain and it's here and it ain't leaving until September. Turns out we have a tin roof, or corrugated steel or something, and it's loud when it rains. Really loud.

There were at least three conversations going on at the same time, and I was barely aware of the one I was having. I excused myself and walked next door to another store in the same building. It was quiet. You could hear the rain, but it was distant and I had no trouble talking to the sales girl. I walked back to my store and entered white noise. I had to shout to call the contractor down from the ceiling as we could barely hear each other.

I'm at home now where I should be finishing up an order instead of blogging before I fly out tomorrow. Somebody else is at the store watching the contractors as they reinstall the tiles and re-hang the material that will cover it. Shoulda' just painted the damned things.

Posted by petefredbob at 04:44 PM | Permalink

It's Saturday morning and I was awoken by the sound of hammering and sawing at the worksite next door. It seems that they're building a mini-mall with all the attendant racket, just 2 months after I extended my lease another two years. It's not all bad, as I can get a large portion of my news/web surfing/occasional posting done in relative peace.

Today we go in to finish painting the store and maybe meet with a construction guy to get started on the lounge/mezzanine. I have to finish the ceiling before he starts because I'm pretty sure the lift machine won't be able to maneuver around the construction after it's started, which means a decision today or tomorrow about what material to use to cover the drop ceiling grid.

I had to drop my Brazilian shoe supplier over pricing and a shit attitude. It's a small company with a husband-wife team, one not knowing what the other was doing. After conflicting emails (one a humdinger telling me I was trying to steal from them) and a refusal to discuss prices rationally, I called it quits. Then an apology, wherein I was tempted again to do business, then a good tongue-lashing from my partners telling me I was insane for even considering it. I'm going with good ol' American product. Designed in England and made in China.

It may turn out this change is a lifesaver as I may have been way off base with my import duty calculations. I was figuring on 30% duties overall, which would have put my retail price at 40% above retail for the same items in Brazil (after shipping, insurance, etc.); which is a premium the locals are used to paying for imported goods. But I may be looking at closer to 43% when all is said and done. If this turns out to be true (information shifts in these parts depending on who you talk to, and you never find out the real cost until the end), I would have taken a bath with the old plan. Hurry CAFTA.

I've had my coffee, read the news, finished the post and now off to the shower and work.

Posted by petefredbob at 08:52 AM | Permalink

Haphazard as usual posting, but I have a good excuse this time: I'm the proud owner of a new store. It's empty for the time being, but in a couple of months I expect it to define fashion for the younger set in Costa Rica.

I'll be bringing in boots and shoes from Brazil, corsets and the like from L.A., stuff from Japan and whatever else I happen to like. Maybe even Dickies. We'll see.

To celebrate the birth of my new baby I'll be doing what all new proud parents do; posting pictures. Here are the first:

Here we have the front door, currently carrying the name "ShoeStock." This of course will be changed, but I'll save that for a future post.

Here is my next-door neighbor. As these things happen, the owner of this store is related to a friend of ours, who also happens to be on the board of our corporation. My landlord, unbeknownst to us at the time we decided on this place, is an old friend of my girlfriend, which made negotiations much easier.

Here's the overview as it is. It's a pretty high ceiling, which I will drop a bit, and has plenty of storage and a place for the office in back.

Speaking of the office, here 'tis. I'll be slapping up a (thick) wall or two to keep out the ladrones. In light of a recent discussion on the internet, I'll be going for a carbine of some sort instead of the shotgun I had in mind. Notice the security window.

La Doña de la tienda, marking her territory where the register will be.

Looking out the front window at Centro Comercial Munoz & Nanna in beautiful downtown San Pedro, Costa Rica, my new haunt for the next couple of years. There are two universities within spitting distance and traffic seems to be nonstop. I hope it stops at least for a few minutes at my place.

I'll post more stuff as it happens, especially the expected bureaucratic snafus with all the colorful details.

Posted by petefredbob at 05:57 PM | Permalink