Minimum starting capital
1, 5 yearsPayback
13 %Profitability
About 30% of the corporate segment in the market is occupied by small companies, and not more than 45 of them have a turnover of more than two million dollars a year. Thus, even under the condition of rather high competition and the existence of large players in the market, newcomers have every chance to take their place in the market (even if initially small, but with the prospect of further development and expansion).
The assortment of most office supply stores includes products of both foreign and domestic production. The quality of imported goods is often higher than Russian, but the situation is gradually changing. Manufacturers (primarily paper and white products) are switching to modern equipment, developing new designs, using high-quality raw materials.
In the structure of imported office supplies, the share of products from Southeast Asian countries is increasing, the design of which is often not inferior to the European office, and prices are often lower. Additional benefits include a wide range and frequent lineup changes.
For this reason, in some product groups, the share of Asian products can reach up to 50%. However, from the point of view of Russian consumers, products of Asian origin should be “cheap”, even if they are not inferior in quality to European or domestic products. For this reason, many large and medium-sized wholesale companies selling office supplies often order products in Asian countries under their own brands.
Cost-effectiveness of opening a stationery store
The annual capacity of the Russian office market is up to $ 2.5 billion. This segment is considered the most promising, along with the office for schoolchildren. The growth of the clerical industry, which amounts to 45% per year, is mainly due to an increase in the supply of office supplies for the office.
The following participating companies are represented on the stationery market: manufacturers, distributors or importers of certain brands, wholesale companies or companies reselling brand products, companies specializing in serving corporate customers, retail stores and large chain stores. Market leaders in terms of working capital are Komus, Regent, Ekort, Office Premier, ProBuro, Farm, Bureaucrat, Chancellor.
So, your stationery store can be targeted at a wide target audience (parents of preschoolers and schoolchildren, schoolchildren themselves, students and other buyers) or have a narrower specialization (goods for creativity, for school, for the office, etc.). As mentioned above, office supplies account for more than 60% of the total sales of office supplies.
Profit in this segment is much higher than in the school, which attracts the attention of aspiring entrepreneurs. Nevertheless, it should be borne in mind that when working with office products, the format of an online store with a service for delivering goods to the office is more likely. We are considering the option of opening a regular stationery store, where products for schoolchildren, preschool children, students and the widest audience will prevail. The bulk of purchases are in the first two groups of customers.
Stationery is classified as general consumer goods. The demand for such products depends little on the season, as well as on the economic situation in the country, because even despite various economic crises, children continue to go to educational institutions and they need pens, notebooks, covers for textbooks, goods for creativity, etc. Although fully it is not worthwhile to exclude the influence of the seasonality factor on sales. So, the greatest demand is observed from July to September, when parents begin to purchase an office for the school. From October to July, the stationery store’s revenue is relatively stable (with some decline from May to July).
How to register a stationery store
To open a stationery store, you must register as an individual entrepreneur, which will be easier and cheaper than registering a limited liability company. However, if you plan to do business with a partner or several partners, and also intend to engage in wholesale trade, it is recommended that you register an LLC.
The type of activity of your company in OKVED refers to the “Retail trade in paper and office supplies” (08/18/2019). No special documents are required to open a stationery store. The standard list of necessary documentation that you will need to receive includes the Sanitary and Epidemiological Certificate (issued by the Sanitary Inspection) and the Fire Safety Certificate (issued by the Fire Inspection). Also, if you have a cash register, you will need to register it with the district office of the Tax Inspectorate. In addition, from January 1, 2012, it is necessary that each of your employees has a certificate of medical examination.
Determine the location of the stationery store
Your office supply store should be located in a high traffic area. Many entrepreneurs are sure that the optimal location for such a store is the city center. In fact, this option is just the least preferred, because, most likely, the competition here will be much higher, as well as the cost of rent. But a busy sleeping area is more suitable, especially if you open your store near a shopping center, grocery stores, household goods stores, children's toys, etc.
You can also rent an area in the shopping and entertainment center, but there are a number of nuances. Stationery is a small commodity, but its layout requires a considerable area (you need to lay out everything that is in your assortment, and so that customers can consider it). On the other hand, the smaller the product, the higher the likelihood of theft. If an ordinary store can be equipped with anti-theft systems, then it will be more difficult and more expensive to do this in a small area. The best place to open a stationery store is on the ground floor of a multi-story building on one of the busy streets. A noticeable sign in itself will serve as an excellent advertisement.
The minimum area for opening a stationery store is about 6 square meters. meters. Keep in mind that the smaller the area, the more difficult it is for visitors to your store to navigate in the assortment due to too tight display of goods on the windows. In addition, premises for a warehouse where stocks of goods will be stored should be provided on the territory of your store. It can be very small, since the goods related to office supplies are mostly compact in storage. In the extreme case, it is possible to separate part of the retail space for a utility room, but this option is the least preferred. There should be a low level of humidity in your office space and on the trading floor, otherwise paper products will quickly deteriorate.
What is included in the range of a profitable stationery store
The assortment of a standard stationery store includes writing accessories, PP and PVC products (folders), cardboard recorders, paper and cardboard products, glue and proofreading, plastic registrar folders, corners, horizontal trays, book stands, folders on rings, sticky notes, stationery stuff (paper clips, buttons, etc.), staplers, notebooks, notebooks, desk sets and other accessories, staplers, folders, adhesive tapes, scissors, etc. Value-added products are in great demand. As such, quality, attractive design and functionality can be used.
Consumers give preference to multipurpose goods (such as, for example, pencils with erasers, staplers with anti-staplers, marker pens, correction pens, etc.). They are ready to buy them even if the price of a functional item is not very different from the price of the same products sold separately. Of great importance are the color and design of stationery.
Children of preschool and school age, as well as students, prefer stationery in bright colors with eye-catching pictures. An adult audience is more restrained in their preferences, but modern design is of great importance to it. You should not buy exceptionally cheap products, hoping to attract as many buyers as possible. Modern consumers are becoming more discriminating and demanding on the quality of goods. However, expensive products also run the risk of lying on your shelves.
It is best to bet on mid-range products - high-quality and beautiful. For example, when choosing between cheap 12-sheet notebooks with green covers and more expensive notebooks with color covers made of thin cardboard, when buying, choose the latter.
It will still be more profitable to buy cheap notebooks in various super- and hypermarkets, which, thanks to a diverse assortment, can afford to put a lower margin on some products and / or purchase them from manufacturers at more favorable wholesale prices. You do not have such an opportunity yet, therefore it is better to offer a wider selection of goods of the middle price category (3-4 varieties of one type). You may not be able to compete with large chain stores, but it is imperative that your prices do not differ significantly from those of direct competitors.
Even with a difference of 5-10 rubles per position, potential buyers may prefer another store. In addition, keep in mind that on the eve of the school, parents purchase the necessary stationery in large quantities, and saving five rubles per position can eventually turn into a significant amount.
Sales and marketing of a stationery store
Experts advise constantly changing the layout of goods. So you create the feeling of a wider choice and facilitate the process of finding the right product. Seasonal goods that are most in demand in a certain season (as a rule, these are goods for school) are laid out in the most conspicuous place. At the end of the season, part of the unsold goods is returned to the warehouse, and part is sold almost at the purchase price. Do not be greedy and hide it until the next season. Part of the product will simply lose its relevance (for example, calendars, diaries for a certain year, notebooks with idols of this year on the covers, etc.), and part after a long storage will no longer look like a new product.
If possible, try to expand the assortment of your store. You can include in it, in addition to the office, educational and children's books, souvenir and gift products, small toys, stickers, calendars, bookmarks, etc. All this will help increase profits (although you will have to invest a little more).
Small stationery stores, as a rule, purchase products from wholesale companies. Choose 2-3 suppliers who offer products at the lowest prices and with the working conditions that suit you. Find out in advance the delivery terms, even if the company is located in your city. In most cases, it will be more convenient if you do not travel for the goods, and the supplier will bring it to you. Of course, it is much more profitable to purchase goods directly from the manufacturer, but most likely the minimum lot will be too high, and the cost of delivery from another region may even “eat” all the benefits of the purchase directly.
For the placement of goods, special trading equipment will be required, which includes display cabinets, racks, stands with hinged elements (shelves, nets, suspensions, etc.). Part of the equipment can be made independently. For reasons of economy, you can also purchase used equipment. Separate racks will also be required for the warehouse, otherwise neither you nor your sellers will find the right product there.
It is also quite possible to make these racks with your own hands or purchase ready-made ones, including in non-specialized stores (for example, such as Ikea). Do not forget about the sign with the name of your store, posters or window stickers, if it is not possible to make a beautiful showcase, pillar, where you will post ads on the assortment of the store, ongoing promotions and discounts.
Financial calculations of a stationery store
To work in a small store, two sellers are enough to work every other day. However, if the sale is not planned in the “behind the counter” format, then you will also need a cashier and 1-2 sales assistants who will monitor the order, answer buyers' questions, replenish stocks of goods on the shelves, and deal with their layout. In addition, more support staff will be required before the start of the school year, otherwise your two sellers may not be able to cope with the increased number of buyers.
To open a small stationery store will require from 400-450 thousand rubles. This amount includes rent, purchase of the first batch of stationery, minimum retail equipment. However, there will be additional expense items - ordering and installation of signs, advertising, salaries to sellers at least for the first three months of operation. The margin on stationery reaches 200% for cheap products and 50-70% for more expensive products. The payback period is from 1.5 years.
Liliya Sysoeva(c) www.clogicsecure.com - a portal to business plans and guidelines for starting a small business 08/18/2019