With the great number of supermarkets in the market, how do you know which one is for you? This question is important because you don’t want to end up regretting a deal. Supermarkets are pricey investments and the wrong pick can put you in serious financial trouble.
Finding a supermarket that fits your needs requires a careful analysis. Just like determining your readiness to buy a supermarket, a good way to do this is to ask the right questions.
1. Do you want an independent supermarket or a franchise?
Both independent and franchise supermarkets and convenience stores have their own respective advantages. Buying the latter means being able to leverage the franchise’s existing brand. You are more likely to be trusted, especially if the franchise has a reputation based on quality service and products. You have a number of franchise choices, including IGA and Foodworks for supermarkets, and SPAR for convenience stores. Franchises are great if you want a headstart.
Buying an independent supermarket means having the freedom to sell what you want and to set your own rules. A franchise is required to follow a set of guidelines to ensure uniformity. This kind of restriction does not exist in independent stores. You also get the chance to try new ways to engage your customers and doing business. If you want greater control over your business’ direction, then buying an independent supermarket is likely better for you.
2. Where do you want your supermarket to be?
Location is a big deal when running a supermarket. No matter how fine your products are, you will never sell a lot if you are located far from your customers. Supermarkets deal in commodities, products which customers often want to purchase as near from their homes as possible. As such, it is good measure to select a store that is located in areas where customers frequent.
Location is also an important consideration as it lets you choose the kind of customers you will be interacting with. Do you enjoy the academic crowd? A convenience store located near schools and universities be visited by teachers, school workers and students often. Do you like interacting with tourists? Buying a supermarket near beach resorts or other popular tourist spots will allow you to sell your products to both local and foreign tourists.
Finally, you may want to choose a business that is near your home. This is especially important if you have a hands-on approach to running the business. It would be easier for you to get to and from your business when you are needed the most. Additionally, being close to your supermarket means being close to your customers. You can best strategize your operations to suit your customers if you actually know who they are and what they want.
3. What kind of owner do you see yourself being?
Do you see yourself becoming a hands-on owner or would you rather hire a manager to do the overseeing for you. If you see yourself being the former, then you can take advantage of
supermarkets or convenience stores that come attached with a home. These deals are at times cheaper than having to purchase a home and a supermarket separately. The residences come in many varieties and can accommodate a single individual or a small family.
Even if you don’t see yourself living beside or on top of your supermarket, you can still benefit from a business and residence package. You may rent out the rooms or transform them into extensions of your supermarket, such as store rooms, as well as other income-generating spaces.
4. How much is your budget?
Budget is always a priority. Needless to say, bigger and technologically updated supermarkets tend to command higher prices than ones that are small and those that need upgrades. Being new is not a significant criterion as some older supermarkets tend to make up for their age by having a more solid customer base.
You may have other considerations for choosing the ideal supermarket. The perfect supermarket is rarely, if ever, found easily, so having very rigid standards will seldom do your search any good. The best thing to do is to balance these factors and determine for yourself which ones you can compromise and which ones are truly indispensable.