Your business: how to open a household goods store

* In calculations, the average data for the World is used. Despite the widespread use of numerous hyper- and supermarkets, the popularity of online stores and all kinds of joint shopping sites, small traditional retail outlets in the format of a “convenience store” do not lose their popularity at all. Buyers are not confused by even higher prices and a smaller assortment compared, for example, with retail chains. True, the size of the average check at a small store will be much smaller, because they usually come there not to replenish supplies of household chemicals and things necessary for the house. Typically, regular customers of such a store are residents of nearby houses who urgently needed some small things, for the sake of which it is inexpedient to go to the supermarket. The household goods store is a profitable business, because in its assortment there are essential goods - something that people use every day and that quickly ends.

At the same time, opening such a store requires relatively small investments that quickly pay off. However, the flip side of all these advantages is a high level of competition. In each district of any city there are several such stores. Opening a similar outlet near competitors does not make sense. Of course, you can offer a wider assortment (but in this case, it is likely that buyers will still habitually go to the store with less choice but a familiar seller) or lower prices for goods (thus reducing their profit). Both options are not the best solution. However, in almost every city new houses are being built, whole areas appear. The format of a “convenience store” allows you to open such a point very quickly (because you need to get ahead of potential competitors and take a better place) and with minimal investment. Let us consider in more detail the procedure for opening a household goods store.

As a rule, in the assortment of such a point there are products of several categories: household household goods (plastic products, rugs, ironing boards, stairs, step ladders, cornices, hardware - locks, keys, latches, etc.); goods for the garden (garden tools, nets and insect repellents, garden grilles, decorative figures, etc.); building materials and tools (mounting foam, adhesives, dry mortars, hammers, axes, saws, screwdrivers, etc.); household chemicals, etc. Of course, not all of these product groups may be present in the assortment of your store. If your point is located in a residential area among high-rise buildings, then it makes no sense to include garden products in its assortment. If there is a household chemistry store nearby, then you are unlikely to be able to compete with it in this segment both in prices and by choice. If the store is located in the area of ​​new buildings, then its assortment must necessarily contain goods for construction and repair.

The main place in the assortment of a small store is occupied by inexpensive small everyday goods, for which you can set a higher margin. The smaller the product, the more choice. For an average-sized store of household goods with an area of ​​about 100 square meters. meters recommended range of at least a thousand positions. At the same time, at least half of them should be presented on shelves and display cases. Some novice entrepreneurs have an area of ​​100 square meters. meters seems too big, but the fact is that the stores of household goods and household chemicals earn mainly on a large turnover. The greater the choice of goods in your sales area and warehouse, the higher the likelihood that your visitors will find what they need. On a smaller area, it is not advisable to open a household goods store.

Carefully choose the location of your future store. As mentioned above, the best option is a new sleeping area with high-rise buildings and a high population density. Finding one will not be easy. As a rule, in an area with new buildings, where apartments are still being sold, it is unprofitable to open a household goods store due to low traffic. And when the houses are already populated, such shops will begin to appear, like mushrooms after the rain. Therefore, it is so important to catch the moment to open your store in time, when the demand for household goods becomes high, and the competitors have not time to catch up. Of course, you should not open a store near large super- and hypermarkets, where there are departments of household chemicals and household goods with a large selection and at lower prices (for some goods their retail prices are lower than those of wholesalers), as well as next to network outlets. No one is safe from the fact that some time after you open your store, a stronger market player will appear nearby, which you cannot compete with. In such a situation, you can either expand the assortment, trying to cover what competitors don’t have, or move to another place.

In addition to the area, there are no other significant requirements for the leased premises. Of course, it must be in good condition and have at least some repair. Ideally, it is desirable that, in addition to the retail space, you still have a separate area for the warehouse. But you can do without it, placing trade stocks behind shelves and display cases. Decide on the trading format. The most advantageous is the self-service store format, the display of goods in which is open, and buyers themselves choose what they need and carry it to the cash register. According to experienced entrepreneurs, sales of such a store can be 50% higher compared to the format of trade because of the counter. True, the costs in this case will be significantly larger. Firstly, you have to purchase special trading equipment. Secondly, the staff of the store will expand. You will need 1-2 sales assistants working in shifts and a cashier. From time to time, you can replace sellers yourself. This will save a little and evaluate the demand (and further adjust the assortment), and you can also control your employees. In most cases, the seller’s salary consists of two parts - fixed (small salary) and motivational (percentage of sales). When things go uphill, some entrepreneurs, wanting to save money, transfer sellers to a 100% fixed salary, removing interest. However, as a result, employees' motivation disappears, and sales may decrease significantly.

Thirdly, with the open laying out of goods, the likelihood of theft increases, therefore, in order to protect yourself from losses as much as possible through the fault of the "nonsuns", you need to invest a lot of money in the organization of control and protection. But you can combine both options for organizing sales by placing larger products in the open part of the hall, and a trifle in glazed and locked display cases. In this case, the seller can act as a consultant, helping customers find what they need, and a cashier, taking money for the goods.

Whatever option you choose, you will need special trading equipment, which includes central (island) and wall racks, glazed windows. For larger self-service stores, you will need cash registers, bag cabinets, baskets, trolleys, packing tables, etc. Equipment can be purchased both new and used. Often, large companies update their trading equipment, selling old at low prices. Importantly, pay attention when buying used equipment on its appearance. Of course, it is not worth taking ragged and broken racks, even if this allows you to save a lot. In addition, you can only order accessories, and then independently assemble furniture from them.

It is most profitable to buy goods for your store from local wholesale companies. With long-term cooperation and good relationships, you can agree on a deferred payment (as a rule, it is provided for a period of not more than two weeks). This will allow you not to invest your own or borrowed funds, but to pay for goods from profit. In addition, when buying products from wholesalers, suppliers often offer delivery at their own expense, so that you can save on logistics.

The assortment of your store should be dominated by mid-range products. The higher their value, the longer they lie on the shelves. As polls show, consumers prefer to buy cheap goods in small stores, and for expensive ones go to large and specialized stores, even if the price of similar products in the latter does not differ much from yours. However, do not go to the other extreme and buy cheap Chinese-made goods, which are of extremely low quality. Do not forget that the circle of your potential buyers is limited, for the most part, to the area where the store is located. And if they, disappointed in the quality of your goods, stop coming to you, you run the risk of going broke.

As sales increase, try to gradually expand your range with new product groups. For example, various pet products, toys and souvenirs, interior decorations, and small accessories are also in great demand. In anticipation of the New Year holidays, you can offer your customers holiday items. Think about a pricing system in advance. Consider not only the price category in which your store will operate, but also the level of competition. Try not to be greedy or set an extra large margin on the product. Extra charge for household goods is from 40 to 100% (average value - 65-70%). The cheaper the product, the higher the margin, and vice versa.

Choose the legal form of organizing your business. Experts advise giving preference to the form of IP. The optimal form of taxation for such a store is UTII. In addition, you will also need to pay personal income tax (13%) and a single social tax (34%).

At the opening of a medium-sized household goods store with a total rentable area of ​​100 square meters. meters (50 square meters of retail space plus retail and office space) with two sellers will need about 600-650 thousand rubles. The average monthly revenue of such a store is about 280-300 thousand rubles, and net profit is about 40 thousand rubles. With these indicators, the payback period reaches one and a half years.

The smaller the area of ​​the store and its assortment, the correspondingly lower the cost of opening. For example, to open a point with an area of ​​25 square meters. meters with an initial purchase of goods in the amount of 350 thousand rubles, salaries of sellers up to 10-12 thousand rubles, commercial equipment, production of signboards and inexpensive advertising (for example, distribution of leaflets in the area) will require about 600 thousand rubles.

The business of selling household goods depends little on seasonal fluctuations due to a wide range. When demand for the goods of one group falls (for example, building materials and garden tools for obvious reasons will not be in great demand in the winter), sales of goods of the other group increase (for example, souvenirs, home decorations, Christmas decorations will sell well in the winter) garlands, etc.).

Sysoeva Lilia

(c) www.clogicsecure.com - a portal to small business business plans and guides

08/18/2019


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