Hi guys, I was thinking of opening a general shop place iko Ruiru. It is a prime residential area with only 2 shops that have very poor customer service and little stock. I already have the perfect location. It may sound like a simple business but I have never run a shop before so I’m kinda nervous. What are some of the challenges I can expect? Also, I want to compete against the other shops on price. (offer items several shillings cheaper). Does anyone know where I can get stock for a low price? Finally, what range of profit can I expect to make per month?
Do not compete on price. Compete on customer service. There are guys who move around delivering basic things like bread, mandazi, etc, so you do not have to worry about the source. From my experience, make the shop a mini-market kind of a setting, where customers walk in and pick whatever they need. It works better than the traditional setting of a shop, coz in the process of searching for whatever item they want to buy, they will see other things on offer and knowing women (and children), the may just make that extra purchase.
Regarding the profit, hio sijui. Wewe ndio utatushow ukiuza.
Yeah, I also think overall customer experience should be a priority. I had thought about the mini-market model but I did not like it. I think it negatively affects customer service and customer loyalty because of the lack of one-one-one interaction. When I interact with each customer, I can enrich their shopping experience and even suggest extra things they can buy. I am also thinking of ways to display items such that they are easily visible to customers. (I don’t plan to sell through a barred window. Rather customers will walk in to make a purchase. So I guess that’s a plus.)
@ol monk @Ice_Cube hahaha I think you guys are the minority. Anyway, customer service is not about applying a blanket treatment to all customers. You have to gauge and understand each customer and interact with them appropriately. If you come to the shop all serious and formal, I will not interact with you in the same way as someone who is usually chatty. Customer service is all about responding to each customer’s individuality.
@isaacmathu if you need a girl to be your shop keeper, please take our very own @Unicorn She has been working for @Luther12 as his receptionist but it seems he doesn’t pay well and she also tried to apply for a job as an assistant to @ekamsweu but I worry that he has ulterior motives.
My only advice will be for you to keep a very close eye on your stock of Stoney Tangawizi soda because she seems to have a very high affinity for it. Also, if possible, please install some CCTV cameras because she may entertain @Jirani at your shop and he seems to be questionable “hivi hivi”.
Many goods sold in shops have a very little profit margin. Kama ni mkate, profit per bread ni less than 5 bob. Maziwa, the same. Assuming that umechukua mikate 10 and 10 500 Ml milk sachets, then maziwa ziende mbili na mikate iende tano, you will definitely make a huge loss if they go bad. That would have to be compensated using the profit from the other products. Vitu zina good profit margins kwa shop in kitu kama sukari, mafuta na beauty products. Vitu kama unga, maziwa na mkate hazina profit ya maana. Assuming pia utapatiana ur goods to some customers na credit, your capital itareduce with time halafu utakuwa at a big risk of accumulating bad debts. Personally, I wouldn’t set up a shop anywhere coz ni biashara ngumu.
I want to buy my Arimis and quietly move out to go and do my business then I find this shopkeeper who wants to spoil my moment by being all too chatty. Will I go back there again?
Customers service - You already been told about this.
Availability of items,the basics plus the non basics - usichangae nikikwambia uweke zile toy za plastic kwa hiyo duka yako. Kids are the biggest shoppers if you did not know. wakija na mama kununua maziwa anaona toy ya fefte…anadai,mama anaona ni finje tu anabuy. Just an idea,coz at most,prices are hiked past hundred per cent
Opening/closing hours - Very important coz if the mafisi wa hiyo area watajua ati hadi saa tano for example,kuna duka iko open,wakimaliza ufisi watakupitia. You will create niche customers like @Mathice wale hawana mambo mob bora wanachotaka saa ile wanakitaka kiko available…
Security,yako na ya macustomer wako. I do not need to explain this
Employees…fanya makosa uweke the like of @Unicorn n @Nefertities and their ilk hapo. Utafunga duka na siku ya pili.
Good luck. Oh,and do not forget to come back and give us some feedback
Hapa ndio makosa inaeza fanyika. You may want to engage in small talk with the customer, but DO NOT offer unsolicited suggestions to customers for things to buy
In the estates, parents will often send their kids to the shops. Be creative enough to win them over. I’ve seen it described in a different forum where a shopkeeper always offered complementary sweets to such kids sent to buy stuff by their parents/guardians. The result? They flocked to his shop and even when accompanied by parents, they insisted on shopping there and, over time, the parents themselves shop there even when doing the shopping themselves.
At this moment in time, I wouldn’t advise you to compete on pricing. Considering you’ve just began, this may easily wipe out your capital. Instead, compete on quality of service.
Tafadhali, ensure complementary goods are ALWAYS in stock. Someone coming to buy sugar will probably also buy tea leaves, milk, bread & even margarine at your shop if you have them. The minute they start asking for stuff and you don’t have it, kwisha wewe.
That said, wish you all the best in your endeavor. Come back and update us on how it goes. I’m sure we’ll learn a lot together.