Why I think selling provisions is a waste of time.
- Thread starter Niyi Briggs
- Start date
With the little turnover in the business, goods often expire before being sold out in some grocery shops and this is bad for the business. Profit loss is huge plus the height of competition on this kind of business is always so discouraging
Most of these people that deal in provision business just do that because they see others doing it too and they just don't want to sit idle . Also recharge card business too in retail is a no go area because you need to sell a pack which consist of 10 pieces for little amount as profit .
That recharge card business should be closed down because those who even sell online gain better. Those that sell online can be given #5% naira recharge at #47. I think groceries still work in good locations.
- Thread starter
- #25
This is true. So many of them do it because of lack of ideas on what business to do. In my place, there are so many grocery shops sometimes even opposite each other.
To prevent this it is extremely important before buying any product make sure it is a product that is highly on demand at the moment. Take time out to make some research about it and see if it is something the market is in need of at the moment.
This is because you focus on one particular product but if you accumulate the prophet you will gain from many other goods to be sold in the provisions store and you will get to see that is not just my money or wastage of time.
I still don't get how this works. When a whole carton of 25 pieces of an item fetches you 20 cents profits. Even if you sell 100 different kinds of products, it doesn't make sense for me.
it actually makes sense if you accumulate them you'll get to see prophet in it let me bust your brain do you actually know that people who sell provision gain profits in a day that when calculated over a month it is okay to pay the salary of someone working any top Federal government office for 2 months what they work for in 2 months at a government office they get it in one month staying at the provision store.
I strongly doubt this. It could be true for those people that do wholesale of provision or those that retail but have massive turnovers. You can't do that with the spate of provision shops that litter around every street corner.
So what do expect that they do aside sitting and making their business grow with the sales and little profit they make from he little sales of the provisions.
Even at that, having a little provision store is very much pofittable than you actually think of it.
To remain financially viable, a business that sells products that earn a small profit margin should heavily invest in advertising its offerings. This way, the business would be able to consistently attract a sufficiently large number of customers, meaning that its sales volumes and profits would be high.
How would a small grocery shop by the side of the street invest in advertising when it's profits are so marginal. It's target market is primarily those people living on that street. I think good customer relation would be the strategy to increase sales.
This is the reason why location applies very well in any kind of business because that is what the term mean if a particular kind of business is going to do well there or not.
- Thread starter
- #37
Generally, goods like groceries and food don't work on the profit per unit because they are giffen goods and have to be made affordable to every person. The margins in profitability are not much but is compensated by massive demand. Just respond to demand with this kind of business and you would enjoy it.
