- May 23, 2021
- Posted by: Roger Walker
- Categories: Business plans, Business strategies
Opening a greengrocer requires having a little capital, some contacts, but above all a lot of self-confidence, energy and perseverance. In this article, we want to give you some keys when creating a greengrocer: documentation, bureaucracy, financing, fruit suppliers, fruit preservation processes, returns, etc. How to start a green grocery business? Read carefully and if you have any questions leave a comment and if we can we will help you start the project of your life, the fruit and vegetable store.
How to start a green grocery business?
One of the key aspects when opening a fruit and vegetable store is hiring staff, think that the attention is practically individualized and having a friendly and attentive person can make customers satisfied and return. Let’s see how to start a microfinance business.
If you want to open a fruit and vegetable store, one of the most important things is the location: you should look for a busy street. If possible, it is recommended that it be pedestrianized so that customers can buy quietly; A very good location for these types of stores is in the commercial areas of the city, near the municipal markets or near the butcher shops since the target audience is usually the same.
Profile of the entrepreneur who sets up a greengrocer. One of the advantages of setting up a fruit shop is that it does not present great difficulties to carry it out since it does not require previous experience or training, although it is convenient to know how to work in the sector. It will be ideal for people who have the desire to undertake and are willing to acquire knowledge about the articles and the operation of the business.
When talking about the margins of a greengrocer business, the first thing to consider is that the products are sold at different prices and that some of them lose value or must be discarded entirely. Thus, the gross margin on the purchase price estimated by the sector for a retail business dedicated to the sale of fruits and vegetables ranges between 30 and 40% of the purchase price at which the waste will have to be discounted, which is around 5-10% of the purchased merchandise.
To carry out this study we have considered, taking into account possible waste, a gross margin of 28% on sales equivalent to a margin of 38.9% on purchases.
The greengrocer sector is one of the largest subgroups of the food sector, the greengrocer is the most stable establishment in the sale of its products. In addition, while sales of other products such as dairy, packaged foods, etc. have grown. of the large supermarkets, fruits and vegetables continue to be purchased mainly in traditional greengrocers.
The reason for this is that most consumers associate more freshness and quality with the fruits and vegetables sold in greengrocers than those sold in supermarkets and large stores, in addition to most of the purchases that are made. in these large areas, they have a majority periodicity of 15 days or a month. The demand for greengrocer products comes basically from the environment close to its location. Therefore, the clients will be the families residing in the immediate areas of the premises or people who frequently pass through this area. For these reasons, we recommend that you open a greengrocer in places with a lot of traffic and a lot of population.
The key to the success of a greengrocer is to always offer fresh quality products at competitive prices and, above all, an exquisite treatment.
To achieve a quality offer, it is essential to know the tastes of the customers and gradually adapt the variety of products to the needs of the customers. For example, there are currently companies that are adding exotic and ecological products to their offer, while others are introducing themselves in the sale through the internet.
A good way to know what products customers like and to make customers aware of the products is to give them a try. For this you can do tastings of new products that are intended to be incorporated into the offer of the greengrocer or seasonal products.
It is also essential to differentiate yourself from the competition through services that provide added value to customers. For example, it can be allowed to order by phone and, in addition, if the customer cannot go to the greengrocer to pick it up, it is delivered to his home.
The pricing strategy of a greengrocer should be based on offering a quality product at competitive prices. For this reason, the setting of prices will be oriented according to the prices of the competition, taking into account that there will be certain items that we have to sell at aggressive prices, especially in the beginning, to attract the client and get them to try the products. products.
The costs and steps that must be taken into account to open a greengrocer are the following, approximately:
rent or purchase of the premises
conditioning of the premises, external signs, shelves, etc. This can be around 10,000 dollars
cold room, about 5000 dollars
first purchase of fruits and vegetables: 2000 dollars
constitution of the SCP or SL between 500 and 3000 dollars
As you can see, setting up a greengrocer can cost, not counting the purchase of the premises, about 20,000.
To carry out optimal management of a fruit and vegetable store, there is the possibility of having real professionals who take care of it. Having the services of a good online manager, for example, ensures greater ease in labor, tax and accounting procedures for our business.