http://community.csdecisions.net/ Convenience Store Decisions Community Topic: COnsidering opening a C-Store need help! en Thu, 09 Sep 2010 18:07:46 +0000 http://community.csdecisions.net/topic/52#post-141 Fri, 07 Aug 2009 13:36:39 +0000 CathyHopkinson 141@http://community.csdecisions.net/ <p>I agree with Suprmark in a previous post. There are many hidden cost in operating a store.</p> <p>Something that some new store owners aren't aware of is that you can get some services for free. For example, without mentioning anyone in particular, Lets use the cold vault. Sure a large supplier of soft drinks will come in there and set up the cold vault for you. They may even tag the glide in the back for their product. but what about all the rest of the products? Are ALL the products shoppable and are they set to be consumer friendly? Is everything spaced correctly? Are you getting optimal shelving space to place as much product in a door that you can? Probably not! But your thinking, so what...it was FREE! It can in many cases still be FREE to YOU and be done correctly and to your expectations. I can show you exactly how this is done. Let me know if you would like a copy of my powerpoint presentation. It is short and to the point. You should always look at getting everything for your store to YOUR expectations, not someone elses.</p> <p>Best Wishes for years and years of succcess! </p> http://community.csdecisions.net/topic/52#post-110 Sat, 07 Mar 2009 16:55:42 +0000 suprmark 110@http://community.csdecisions.net/ <p>The selling price of any item is based on supply &#38; demand. What does the same item sell for elsewhere?<br /> Buying from a distributor has it's advantages. First of all, they are licensed to do business, the product that they sell is being tested by the Food &#38; Drug Admin.<br /> Buying from private people is scary. What happens if one of your customers gets sick? Are the private people being watched by the Food Saftey programs? Are they licensed?</p> <p>The distributors WILL make money, don't worry about that. what you need to do is find out specific items that you will be selling, and go and find what other stores are selling that identical item for.<br /> For example, Store "A" sells a ham sandwich for $3.50<br /> Distributor "B" sels you the ham sandwich for $2.00, you would make a $1.50 profit, which is about 60%...which is about right for perishable items. But, on the other hand if Store "C" sells that same sandwich for $2.50, you would only make 50 cents, which is NOT a good enough mark up. Perishable items should typically garner at least 60%, if not 100% because of loss.<br /> Packaged items that are not perishable, should garner at least 35% and up...providing the market can bear that (i.e. that other stores in your area have the same products for even or more than you sell it for)</p> <p>This is a task for ALL retailers is making sure that you make enough money to stay in business, but be competitively priced so that customers will come to your store...it is a fine balancing act. </p> <p>One wise old retailer once told me to start selling product very cheaply at first (when you first open) to get them into the store, and then gradually, over months, raise your prices so that you can start making money. I think the thing that drives most retailers out of business myself is marking an item to inexpensive. There are tons of hidden expenses in running an establishment.</p> <p>Good luck! </p> http://community.csdecisions.net/topic/52#post-99 Mon, 09 Feb 2009 15:45:22 +0000 AntBea 99@http://community.csdecisions.net/ <p>My idea is to open a store where people on the go can purchase good food products so I am considering selling products from local vendors like their fresh salads, sandwiches, cookies, pies, cakes and other food items that I feel will sell. I understand buying from a distributor but:</p> <p>How are these items priced?</p> <p>How much should I be paying the vendor for their product?</p> <p>Can both myself and the vendor make money?</p> <p>I have a management background, but I have never owned or operated a store. This willbe a new venture for me and I am trying to learn all I can.</p> <p>Thanks so very much! </p>