Electric products are one of the most popular categories of goods in our market. They go to electric goods stores if a light bulb burns out, if an electric extension cord or night light is needed, if the family is going to make repairs and change the wiring. Although the competition in the market of electrical goods is great, this type of business is consistently profitable due to the stable demand for goods.
Entrepreneurs who are about to open an electric goods store may be advised to first get a sales manager in a large company of the appropriate profile. Having worked only a few months as a market leader, you will begin to understand prices, manufacturers and suppliers, study the range, and see all the pitfalls. This is much more reasonable than knowing a business at the cost of your own mistakes, some of which can be fatal.
An amount of 700 thousand rubles will be required to open an electric goods store. The payback period is from six months to one and a half years.
First you need to find a suitable room and decide on the assortment of goods. If you expect to work mainly with large buyers (electricians and customers doing home repairs), then take care of a convenient drive to your store and parking options. For an electric goods store that relies on a small customer, a high traffic area is required. Renting such a hall will be much more expensive.
The experience of successful stores shows that it’s better not to work on trifles. Bulbs and sockets are also sold in ordinary hardware stores, and a decent profit comes from cooperation with electrical organizations. 95 percent of sales of electrical goods, as successful entrepreneurs say, are B2B, and only 5 percent is retail.
After registering the IP, choosing a tax system and ordering a print, you need to get permission to open a store. This is probably one of the most difficult stages in the opening process, because a lot of documents are required. You will need permission from the sanitary-epidemiological service, permission from fire control, permission to equip the facade, documents for using cash registers. If you have the money, you can turn to the services of special intermediary firms that help to collect documents for starting a business. You also need to open a bank account, register with a pension and medical funds.
Even if the room does not need repairs, then considerable expenses are for furniture for the store: shelving and display cases. The average cost of one rack is 6-10 thousand rubles. Glazed windows can be purchased at a price of 5 thousand rubles. A computer is required in the trading floor (15-20 thousand rubles), it will require the installation of a licensed program 1C (25000 rubles). The cash register will cost 15, 000. Do not forget about protecting the store from robbery. Order good blinds, set an alarm. Protection is not worth saving. Think about how you want to see your sign. In order not to waste too much, you can offer an order to several outdoor advertising companies and ask them to make a calculation of the work, and then choose the option that suits you.
The monthly expenses for the store are rent, employee salaries, utilities, Internet, telephone, gasoline, that is, about 60-100 thousand, depending on the city. If the rental is very small, then maybe less.
To trade, you need at least one person who knows electrical goods and is able to give advice to the buyer, that is, a sales assistant. Sometimes working with one buyer can take a long time, so it’s convenient to hire a cashier and a sales assistant, this will help to avoid queues. Consultant salaries will be higher. The average cashier’s earnings are 10-15 thousand rubles. The sales assistant can be offered a small salary and a percentage of revenue. Dishonest sellers are a big problem for business owners and can cause losses. Watch your employees closely until you are sure that you can trust them.
To purchase goods you need to choose a wholesale supplier. It is best to work with authorized dealers, because you do not want to overpay. Your margin will be between 20 and 120 percent. It is important to choose the right product range. You can start the most common, and then focus on customer requests. It’s good if you immediately have money for business development. The first months you will receive a small profit, and there will be no money left to fill the windows. It is even possible to work in the red, consider this when allocating funds. Do not immediately form a warehouse. A wise businessman forms a warehouse only for guaranteed sales and existing customers. You can spend several hundred thousand rubles on goods, which will then be dead weight for years.
Advertising to the store will be required not only at the opening. You will need to fight for a place in the sun throughout the life of your business. Ads in newspapers, on local radio and television, advertising banners and billboards, your own website, distribution of advertising on the streets - try it all. Ask customers how they found out about you to find out which ads are most effective.
If you want to attract professionals as regular customers, make sure that you have the whole range of goods necessary for the implementation of electrical work. If a person gets everything that he needs from you, you can not be afraid of competition. Electricians who are your regular customers can be encouraged to leave free advertising in your store.
Some stores themselves offer customers installation services. Be ready to perform installation work, install an electrical panel. This type of additional earnings will soon be able to bring good income.
Collaboration with various organizations may be beneficial for you: schools, colleges, hospitals. They constantly need electrical goods, you can offer to deliver them everything you need every month for free.
When forming the assortment of small goods, take into account the specifics of your area. For example, if the store is located in the old district, where mainly pensioners live, expensive sockets and switches, even if they are of very high quality and with a small margin, will remain on your shelves. They will take the cheapest goods.
Consider a discount system for large customers. It can be one-time discounts on a certain amount of the purchase or discount cards for regular customers.
Temporary discounts on certain goods or for certain categories of the population work well to attract people. For example, this month there is a 20 percent discount on cable. Or pensioners counters of 500 rubles.
Try to find a supplier who can give you electrical appliances or tools for sale. Having a good selection of a certain type of electrical appliance, such as water heaters, will distinguish your store from similar ones and will attract more customers. A little trick: to get installments from a major supplier, you can simply bribe a sales manager.
You can open a franchise of an electrical goods store. The volume of investments is from 500 thousand (in fact, twice as much). Buying a franchise, you get a well-known brand, information support, assistance in the design of the store and advertising printing, technical documentation, a business plan selling the site, training employees to sell electric goods, favorable terms for delivering goods, installments when paying for goods already available in your region customers company. To obtain a franchise, you first need to fill out a questionnaire on the company's website and wait for representatives to contact you. There are certain requirements for a franchise applicant. First of all, you should be ready to work according to the standards of the company, your signboard with a logo already familiar to consumers obliges you to do this. The size of the commercial premises must be at least 40 square meters, in addition, the premises should be located in a densely populated area, close to traffic with high traffic. Other stores should work near your store, especially if they are construction, furniture, plumbing or repair shops. Even if you don’t buy a franchise, you should take into account the requirements for the location of the premises in any case.