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Old September 12, 2011, 06:03 PM
MMacGillivray's Avatar
MMacGillivray MMacGillivray is offline
Eternal Optimist
Join Date: Sep 2006
Location: Helensburgh, Argyll
Posts: 231
Default Re: I don't understand business...

Hi, TW - interesting question - well, I know one small cheese shop near Bridge of Cally in Perthshire which seemed to survive ok - but they are in the middle of a rich farming community where big estates make money by letting large houses to very wealthy hunting, shooting and fishing types. It's a couple of years since we were there, so not sure how it's surviving the recession. Oh, I just checked the website and they seem to be live and kicking -

I don't know if "your" cheese shop serves a similar area? Do they do deliveries? Do they sell cheese and wine online? Do they have a mailing list? Do they supply cheese wedding cakes as the McDonalds Cheese Shop does?


Originally Posted by -TW View Post
I'm pressed for time right now, so I will try to summarize this...

Basically, how in the WORLD do small biz's survive? Talking about storefronts.

Locally we have a cheese shop (yup, an actual cheese shop -- they sell wine too, etc.). I went in there for the first time (+ only time, I think -- their prices are outrageous -- luxury market).

I bought a tiny slice of cheese for $4.50 ($30/pound). Later, in my mind I was trying to figure out how much biz they need to do to stay afloat. How do ANY small biz storefronts stay afloat?!?!

Rent has to be at least $3k/mo. Their markup is probably about 100% (keystone) on what they sell. Electricity, employees, advertising, etc.

Err, umm, then hopefully there is a profit (???)


If I bought $4.50 worth of stuff, I'm sure I'm at the low end of the average spent per customer. But still, let's say the average spent is $30 -- how many customers do they need to get PER MONTH.

Note: I have NEVER seen anyone in the store -- from looking through the window from time to time (anecdotal).

It seems IMPOSSIBLE for them to have enough customers per month to cover all the expenses, etc., etc. (PLUS a profit).

It's like those EXPENSIVE SHI-SHI stores in the mall (designer sunglasses boutique or Louis Vitton type stores) -- you never see A-N-Y-O-N-E in there (customers). How do they survive??

I don't get it.

-- TW
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