What to do if a fiver opens nearby. A big and terrible competitor has arrived; what to do?! The franchisee will be required
There is an opinion that if a supermarket or discounter opens next to a local store with low prices and wide range, then to Khan's shop.
Correction: Khan, if the owner is tired of dealing with it.
Here are 9 tools that an entrepreneur can use to make the appearance of a supermarket a blessing... or at least not an evil)
1. Remember that this will happen someday. Even if trade is wonderful now and buyers are standing in line, we must remember that “standing on the path” is not at all unique trade offer and consumer trust is earned over years.
2. Rebuild with assortment. Any federal network has a federal contract for federal brands. As soon as it became clear that Magnit, Pyaterochka, Dixie or the regional Monetka, Family or Metropolis would be nearby, then before the opening we stomp into the closest brother, identify “their” category leaders and boldly and fearlessly drive them off the shelves. We look for and install what is not there. How to find out who is opening? Ask the builders
3. The most important rule: Fresh will save you. Fresh category is something that is not stored longer than 14 days. Plus sausage)
None of the discount stores I visited federal companies does not know how to manage high-margin fresh food: salads, side dishes and meat dishes. Find a decent manufacturer and make fresh your specialty. The same applies to baking. Here in Che Miratorg showed up in fresh supermarkets. Herzlich Wilkommen. We will prove to the country that Chelyabinsk is a city with better trade)
4. Work with staff. Sellers are used to having 500 receipts and corresponding revenue. They can forecast their income. As soon as a neighbor starts up, the revenue drops from 10 (like ours) to 50 (as I heard) percent. In the second case, everything is bad. In the first case, you need to understand whether the sellers are ready to pull or not. In half of the cases it will be necessary to replace personnel. Habit is power.
5. Forbid yourself from thinking about reducing and leveling prices. This is a dead end. The only right to a price reduction is for goods that we sell when replacing the assortment. Drain.
6. Humanity. This is what the federal government cannot provide. trade company. No matter how hard the hr departments try - nain. There is no humanity in Russian discounters and there never will be. And in the local store, yeah. This is a job between the owner and the seller.
7. Friendship with neighbors. Your salespeople should be friends with the salespeople at your neighborhood pharmacy, pet store, and flower shop. Neighborhood sellers will ship to you.
8. Know about consumer behavior: when an alternative point with cheaper prices appears, those who are fundamentally cheaper and do not care about the service will flock there forever. Forget about them. Another 70% of your audience goes there and visits but then returns if you have something that is not there.
20% will appear there once. And they will return.
There's a nuance here. If, after returning, people see the employee working differently (the seller was sad from the lack of revenue), then they may leave again.
9. Search and update the assortment. How do markets benefit? Yes, there is always something new and interesting there. I ride around the markets, buy all sorts of new things and we bring them to us
These things work. But on products. I don’t know what DIY or droggery shop should do. Because I didn't think)
Pyaterochka is a national chain of fast shopping stores known throughout the country. At this moment, over 1,500 retail outlets are successfully operating in Russia. The store format is designed for middle-income buyers, which is what makes them so popular among consumers. Regular promotions, a well-thought-out loyalty system, inexpensive products - this is the key to success! And using the franchising system, anyone can become a store owner. And everything is greatly simplified, given the relatively low cost of the Pyaterochka franchise, compared financial indicators with many other companies.
The copyright holder of the Pyaterochka brand is X5 Retail Group. And since 2009, the company decided to use a franchising system as a scheme for developing a network of stores. The current program is an effective, carefully thought-out business model that has quickly taken root in the Russian market.
Franchise terms:
Investment amount: from 3.5 million rubles.
Franchise cost ( lump sum): 1,000,000 rubles.
Royalty: none.
Payback period: from 12 months.
Minimum room area: from 300 m2.
Sales region: all of Russia.
- The right to use a nationally known trademark for profit.
- Competent work of specialists involved in the sale of franchises.
- Relatively low price store franchises large network federal significance.
- Well-established work implementation system point of sale and document management systems.
- Ready-made databases of goods suppliers.
- Ready store plan.
The entrepreneur is provided with full support from the franchisor. Having the required funds available, you can safely enter into an agreement with X5 Retail Group. How to open a Pyaterochka franchise in Russia? What does an entrepreneur need to consider?
How to become the owner of the Pyaterochka store?
Starting a franchise business is quite simple. This is explained by the fact that many problems are resolved by the copyright holder of the brand. Same here! To find out how to buy a Pyaterochka franchise, go to the X5 Retail Group website. There will be a short online questionnaire here. Fill in all the required fields with information and leave your contact details.
The franchisor himself is interested in the development and promotion of his network, and therefore managers quickly contact those who left a request on the site. After both parties have clarified all the issues of interest to them, the negotiation stage follows and the signing of a cooperation agreement.
The franchisor promises to launch the business within 60 days after signing the contract! Very fast time frame when compared to the process of opening your own business.
What are the requirements for franchisees?
X5 Retail Group puts forward certain conditions for the Pyaterochka franchise. But all the stated requirements are quite loyal and quite feasible!
The franchisee will be required to:
- Documentary evidence of the availability of premises of the required area (either owned or long-term leased from a reliable lessor).
- Availability of funds for a down payment.
- Untarnished reputation in law enforcement agencies.
- No outstanding loans.
- Willingness for fruitful cooperation according to established rules.
The only thing you will have to work on is finding a suitable premises. To find a suitable area, study the offers of premises landlords in a particular city. You can open a Pyaterochka grocery store as a franchise if you find an area that meets the following requirements:
- Availability of necessary electrical power, hot water supply and heat.
- Suitable layout.
- Dedicated telephone and internet line.
- Passable location (sleeping areas, near public transport stops, not far from the road).
- Availability of free space in front of the building (for parking).
- Low level of competition.
In some cases, conditions may vary slightly - it all depends on the specific locality and area.
How is cooperation with the franchisor built?
After signing the cooperation agreement, active preparations for the opening of the store begin. The cost of purchasing a Pyaterochka franchise does not include purchase commercial equipment and food supplies - for this the entrepreneur gives own funds. It turns out that the franchisor provides only all possible assistance here - recommendations, advertising material.
The good thing about this system of doing business is that there is no need to develop a concept for a retail outlet, a logo, color schemes or design.
Franchising Pyaterochka “works” according to this scheme. The entrepreneur, heeding the recommendations of the brand owner, conducts business. All proceeds go to the store’s cash registers, but then are collected in full by X5 Retail Group. From the transferred amounts, the franchisee receives an agency fee - this is usually 13-17%. The money is used to purchase goods, pay utility bills, pay taxes and wages. And all that remains is the entrepreneur’s personal profit.
The cost of a Pyaterochka franchise is quite justified, considering that many well-promoted brands offer higher prices and low royalties to franchise buyers.
In the interests of franchisees, X5 Retail Group carries out:
- assessment of the condition of the selected property;
- development technical project taking into account all the features of the object;
- installation of the necessary software in the store;
- training of hired employees;
- delivery of ordered goods from the distribution center.
And all this is invaluable help when organizing a business. Every entrepreneur will tell you how difficult it is to set up a business, considering how many nuances you have to take into account.
It will be difficult to determine the specific income of the franchisee - it all depends on the specific supermarket. But the franchisor in his advertising brochures promises the promoted store a net profit of at least 300,000 rubles/month. And these are excellent profitability indicators. But as reviews from owners about the Pyaterochka franchise prove, in the first months of operation such numbers will be difficult to achieve. But in the future, provided the location is well chosen and there is no competition, the entrepreneur’s income can reach up to 1,000,000 rubles/month. The minimum payback period of 12 months designated by the franchisor is, in practice, achieved only in large cities. Here the daily turnover is much higher than in regional supermarkets. In addition, competition has a strong impact on income levels - today there are a lot of retail outlets designed for the same segments of the population!
The very concept and format of cooperation under the Pyaterochka store franchise gives entrepreneurs an excellent chance to reduce the costs of doing business by entering the federal trade market.
Large retailers such as Magnit, Pyaterochka and Dixie have literally captured the Russian grocery market. Owners of small grocery stores are actively leaving the niche, which is not always justified. It is possible to survive and even increase profits in the age of grocery supermarkets; to do this, you just need to learn to understand the needs of the buyer and begin to meet his expectations, playing on the imperfections of large retail chains.
1. Bet on geography
Even if there are several supermarkets located around your store, when you are in the center of a residential area, this fact should not bother you. The fact is that in places where residents with average incomes gather, supermarkets are more popular due to the trust of buyers in them. The main thing is not to lose this trust, for which you should carefully monitor the needs of the backbone of buyers, they are the ones who will make you a profit.
There is an opportunity - move deeper into residential areas. This is especially true for large cities, where large retailers, as a rule, rely on renting space in large shopping centers. Shopping malls, in turn, are usually located outside the city, and rarely does anyone go to them every day for bread and other essential goods.
2. Use advertising from large supermarkets to benefit your business
To increase customer interest in your small grocery store, it would be useful to play on the advertising of your “network” neighbors. Pay special attention to the main items of their range. You may be able to offer a product advertised by the retailer at a lower price or with bonuses.
To do this, select 5-7 magnet products, products that are purchased most often. Find a supplier for this or a similar product. Post a noticeable advertisement about the offer or hand out flyers in a high traffic area. Meet buyers. Many people will look for an unprecedented discount on a product and will definitely purchase something else. It is enough to choose 1 magnet product per week.
3. Work with small suppliers
Cooperation with small suppliers of “homemade” quality products will help you stand out from the backdrop of food giants. Find suppliers offering meat, milk, eggs from the countryside, homemade baked goods and other things that are unlikely to ever appear in large stores. There is always a demand for such goods, but you need to take a serious approach to maintaining the quality and sufficient volumes of unique products, then the famous “word of mouth” will work for the reputation of your store.
Good examples of what rarely appears on the windows of large retail chains:
- fresh meat;
- dried fish;
- dairy products “from the village”;
- seasonal fruits at an affordable price;
- original baked goods.
The reason for the effectiveness of the method is the inability of suppliers of the above goods to supply retail networks in sufficient quantities. Don't miss the opportunity to use this.
4. Focus on weight products
In large self-service stores, the lion's share of desserts, sweets, cookies, meat products and semi-finished products are sold in packaged form. But not everyone is comfortable buying a package of sweets or a kilo of dumplings if they can’t eat half before the expiration date. Offer customers weighted goods, and this will immediately affect the growth of the profitability of your store.
It is not necessary to “reinvent the wheel”; allocate a department for:
- sweets;
- meat and fish;
- semi-finished products;
- cereals, pasta, sugar, etc.
You may not offer everything from the list above at once. Choose the type of product that fits well into your assortment. It is important here not to create a queue due to the time spent on weighing. Hiring an additional salesperson for the weight goods department can help with this.
5. Improve the quality of service
Numerous studies conducted by large grocery stores show that most often customers are dissatisfied with the quality of service. IN in social networks There’s even a widespread joke about how dozens of checkout counters are specially made in a supermarket so that half of them don’t work during rush hour. Give the buyer what he lacks, namely polite communication, high speed of service, lack of queues and other things that are so annoying.
Be sure to take care of installing a plastic card payment system, otherwise you risk losing a considerable percentage of customers. If possible, supplement the point of sale with a self-service terminal. Visitor to deposit a couple of hundred rubles into the account mobile phone a person will most likely buy something, or at least remember the store and return when the need arises for the goods presented on the windows.
By the way, about shop windows. Give them maximum attention. Make legible price tags with large items, arrange items in themed groups, display essential items in sight, and keep your area clean at all times. trading floor, this is conducive to shopping.
And another secret to attracting buyers. Arrange your store's operating schedule so that it opens earlier and closes later than neighboring supermarkets; this will also have a positive effect on monthly profits.
6. Adjust your assortment
If you don't know what your store's typical customer looks like, your store will have a hard time surviving in the age of mega-stores. In the near future, draw up a portrait of a typical regular at your retail outlet and write a rough list of products that he buys, and adjust the assortment to suit the wishes of a typical buyer. Not in a crisis best time order “to be respectable” a batch of red caviar if they buy it from you once a year. It is better to concentrate on essential goods, and in small quantities.
Large chain stores, for example, order dairy products once every few days. And it happens that in the windows you can find yesterday’s and even the day before yesterday’s milk. And you find a supplier of “today’s” milk, and after a while, thanks to “word of mouth”, it will be bought up in the first half of the day. Also with fresh pastries, fresh meat and village cottage cheese.
7. Implement your own discount programs
It is not necessary to create complex discount systems. It will be enough to offer 2-3% discounts for pensioners or students, once a week to offer a discount on a certain group of goods, or to allow those customers who purchase goods for a certain amount to save.
A good idea to attract buyers is tastings. Thus, a store that offers, among other things, tea and coffee by weight, can serve customers coffee or tea in the first few hours after opening. You’ll show off your product and attract attention. You can also treat them with sweets, offer to try sausages or baked goods.
At detailed study buyers can find many more ways, allowing you to successfully coexist with self-service stores. But in general, the success of a small grocery store today rests on three pillars: quality of service, a well-chosen assortment and a set of unique products not represented in most chain supermarkets.
11.02.2014, 21:31
Pyaterochka is opening next to my little store. My knees are shaking, I’m scared, how to live further? I can’t count how many little people like me were killed by these dimensionless networks. What to do? I'm in complete panic.
Lissy Moussa
12.02.2014, 14:02
Reconsider your position
12.02.2014, 21:52
And rename the store to "Plus". A plus - what could be better!
13.02.2014, 08:23
Never before has disrespect for a competitor served as a MAGIC Cure
Pyaterochka didn’t kill anyone - they just know how to work better and more efficiently
Reconsider your position
Contempt? How did I disrespect my competitor?
Better and more efficient? Yes, who would argue. That's what they say too. It's like running a Mercedes and a cyclist at the same distance.)) There were three of us here, three cyclists. And they turned their pedals, and it was fair. And then the fourth one came, and he was a Mercedes...
Well, okay, we'll wait and see. Efficiency.))
In any case, the idea of renaming itself Plus is very charming. It didn’t come right away, I admit. But when it came, I started smiling. :) Thank you, Author. :)
A picture that reflects the situation: the predator is not fighting.
http://i.kremenchug.ua/out.php/i25473_50280403-hischnik-ne-sraztsya-.jpg
Lissy Moussa
13.02.2014, 16:36
I can’t count how many little people like me were killed by these dimensionless networks. What to do? I'm in complete panic.
About disrespect: Pyaterochka has no task to ruin anyone
It's you who attribute predatory habits to her
And their task is to earn money - the same as yours
Become better than them (or complement them) - the idea of an “A+” is brilliant!
And your reasoning about justice is one-sided
I would be happy to exchange three “small-timers” at my house for one “Pyaterochka” - and for me, this would be fair
As indeed for most of my neighbors
13.02.2014, 18:58
The difference is that small-time crooks have taken root near your house, but I’m friends with my residential area.)
Yes, this is true, there is no absolute good (evil, justice, beauty, truth, etc.), and everyone has their own truth.) And I have it too. My truth. I’m standing on it. I'm afraid it's easy to slip on someone else's.)
Lissy Moussa
14.02.2014, 09:30
Pony, are you really resisting so much that you can’t see what I want to say, or are you just being a fool?
There is no talk about your truth at all
I'm talking about the war
You are the one who announces it
And for some reason you persist in this
Or maybe peace and chocolate
Although if your truth is war, then of course you can’t argue
But I think so, not for the ambulance - not our methods
Star of Happiness
14.02.2014, 16:30
Can I give you my two cents?
I also have a small shop. And when Magnit opened nearby (*this is also a supermarket chain), I was afraid. But time has shown “don’t go into the forest to be afraid of wolves.” The magnet works and I work. Moreover, another store opened three meters from me. But I'm not afraid. My clients remain my clients. I’m even going to expand and increase the range.
From the magical. Scary... Cinema "Gentlemen of Fortune" in kindergarten Leonov: “I’m angry and scary Gray wolf, I know a lot about piglets, uuuuuu..." And the children laugh.... Act out about the same thing, only they say "Fivers" and you laugh. Laughter helps with fear.
And go into the forest. Hang pieces of paper on trees, in bushes with painted glowing eyes, like a wolf’s, “A” marks. So, you went into the forest, you saw “fives”, but you are not afraid. ...
And there is no need to declare war, Lissy is right. Otherwise you will have to dig trenches later.
14.02.2014, 20:15
I beg you, girls, what other war, where did you find it with me? Well, what kind of warrior does a frightened woman with shaking knees make? Of course, I came here for a smile to change my frightened mood, I’ve already found it. I'm not afraid anymore.)) But I will still visit the nearest landing with a notepad in my hands.)))
Lissy Moussa
16.02.2014, 13:41
Hmmm, it doesn’t get there
Well, then dig trenches with shaking hands :)))
Let me explain for those who are especially gifted: it was you who assigned the roles
And she gave the role of a terrible and terrible strong enemy to PYATEROCHKA
And she took on the role of an aunt crap with fear
NO ONE ELSE PARTICIPATED IN THIS MODEL OF YOURS
This is what YOU decided
Proving something different to you, as it turns out, is useless
But I’ll try one last time: LOVE THE FIVE!
