SOWPub Small Business Forums  

Click Here to see the latest posts!

Ask any questions related to business / entrepreneurship / money-making / life
or share your success stories (and educational "failures")...

Sign up for the Hidden Business Ideas Letter Free edition, and receive a free report straight to your inbox: "Idea that works in a pandemic: Ordinary housewife makes $50,000 a month in her spare time, using a simple idea - and her driveway..."

Also, please no insults or personal attacks.
Feel free to link to your web site though at the end of your posts.

Stay up to date! Get email notifications or
get "new thread" feeds here


Go Back   SOWPub Small Business Forums > Main Category > SOWPub Business Forum
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

SOWPub Business Forum Seeds of Wisdom Forum

Thread Tools Display Modes
Prev Previous Post   Next Post Next
Old September 13, 2011, 05:43 AM
Ankesh's Avatar
Ankesh Ankesh is offline
Senior Member
Join Date: Sep 2006
Location: Mumbai, India
Posts: 688
Default Re: I don't understand business...

Consider rent as advertising expense. And the calculations will fit.

I have a friend who gets an average of 10-12 people to visit his shop per day. Thats less than 2 people per hour he remains open. His shop is in one of the posher locations in Mumbai - very high rent. And yet he makes money. (I think it was 50% of all who enters his shop ends up buying from him.)

The store itself does not make his enterprise wildly profitable. But the store gives him an avenue to create a mailing list of buyers. And he makes a lot of money on repeat sales - via specialty exhibitions and sales. Many of these sales transactions don't happen in his shop - but they happen because of his shop.

Its the same direct marketing model.
Good audience.
Good product.
Good pricing.
Good advertising.
Good backend.

You need to have all 5 in place.

No idea about cheese shops. But I had heard that the Jaguar showroom that opened recently near my home needs to sell less than 2 cars a month to remain profitable.

With the right product-pricing mix, you can remain profitable even with very very low foot fall.
Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Other recent posts on the forum...

Seeds of Wisdom Publishing (front page) | Seeds of Wisdom Business forum | Seeds of Wisdom Original Business Forum (Archive) | Hidden Unusual Business Ideas Newsletter | Hotsheet Profits | The Art of Leverage | The Success Report | Persuade via Remote Influence | Affia Band | The Entrepreneur's Hotsheet | The SeedZine (Entrepreneurial Ezine) | The Fly Low Collect Dough Update Hotline

Get the report on Harvey Brody's Answers to a Question-Oriented-Person

All times are GMT -4. The time now is 09:02 PM.

Powered by vBulletin Version 3.6.0
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.