How To Solve The Dilemma Of Physical Stores
Recently, a supplier provided a data: June sales of more than 300,000, display, stacking and other costs of about 50,000 yuan, the cost rate was surprisingly up to 17%. If you add 15-20% for labor and other costs, the total will be over 32%, no doubt, this is necessarily a money-losing business!
1.Why are the prices of goods in supermarkets always high?
Take a share of data, if the supply chain are able to make money under normal operation, commodities in the middlemen need to have more than 30% of the gross margin space, plus the factory also need to have 15% of the profit, 15% profits of the suppliers, about 10% of the return rate and loss rate, the total gross margin has to reach 70%.Physical stores are facing serious challenges！
Physical Stores-What does this mean?
If the cost of a commodity is 0.8 dollar, it will need 2.7 dollars for customers . The difference between the selling price and the cost price is as much as 3 times, from which all the retail chains make money, the price of goods goes up.
Physical Store Operators Are Stagnant
All businessmen understand “wool on the sheep” , but why do they not take measures to change themselves?
Supermarkets: others all want cost, if I don’t,am I the only one that lose?
Factories: Even if not including the middleman,the actual cost is also unavoidable,either cut leeks by the supermarket, or by the platform wool, what an embarrassment!
Middlemen: After a year of work, I lost a million ,it’s hard to say,having no way to back down!
Customers: the price is so high, please give me a reason to support the physical store.
Is It An Opportunity For Physical Store?
As the new retail model is mushrooming, which brings a fatal blow to the traditional retail, the physical store is facing a serious challenge!
Community group buying, community convenience stores, and professional fresh supermarkets are all seizing this opportunity, promoting vigorously, and releasing high coupons to attract customers at very low prices, while large supermarkets do not have an advantage in price and convenience, and the core fresh food is hollowed out,”change” is only way to go.
How to seize opportunities, look for business opportunities, and make use of the original advantages to transform the traditional retail model is an urgent need to do now!
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