Today we have reached 20,000 visitors on the blog and this must be celebrated with a great new business idea!
Do we have everything right? Fast and already is the norm! A thousand options to choose from is the existing offer and not marrying anyone in terms of commerce is the usual.
Loyalty to companies where you spend your money to buy products or services is a thing of the past. (Except Apple users \ud83e\udd23\ud83e\udd23\ud83e\udd23)
Knowing this, it is very difficult to compete in a revolutionized and unpredictable market.
The loyalty your grandmother had with the corner grocery store is very far from the way you as a person of 30 or 40 years of consuming have but ....
If you analyze the annual expenditure of any household on products or services you realize that 70 and 80 percent of the expenditure is repetitive in the same products.
I give you an example:
Milk
Cocoa
Coffee
Sugar
Meat
Pasta
Detergent
Rice
Gasoline
Gas
Electricity
Fruit and vegetables
Ect.
All these products that are not very eligible in the sense of preferring one brand and another are the major part of the monthly, annual and more than a decade expenditure of any household. In addition there are many more products that can be added to the list.
That is why knowing that imperative need that people have to get these products and playing with the commercialization or production of these at high volume there is enough margin to offer them at a lower cost than that offered by large supply stores.
The idea is not to offer at a better price only.
The idea is knowing that households have a fixed expenditure on these basic non-renounceable products to create a business that is a supplier to households of these products at a flat rate in which each household is studied by the company and offering it a flat rate for all these supplies that playing with the margins of high volume including production of these basic items to the customer supposes a saving and a tranquility to subscribe to this way of supplying the basics than buying these products in the usual way.
The way to supply customers can be in physical premises or online (depends on the investment capacity of whoever starts this business) but it is a fact that 90% of households spend a significant amount per month on the same things and getting them to subscribe to a flat rate studied and designed individually by the company to each household is a secure source of recurring income for the business we are talking about.
Even more if by purchases or even own production at high volume you manage to lower costs and offer a rate that the customer comes out much better price than acquiring them in the usual way. You can also reduce profit margins because income is stable.
The customer online can add or remove products to their subscription with which the quota will go up or down but will continue paying every month faithful to the corner grocery store as their grandmother did.
Perhaps the easiest way to start this business is with a giant warehouse in the center of Spain (Madrid) and supply the products by courier and adding products to subscribe to such as gasoline, energy, gas or insurance but of course, it supposes a saving to the customer according to the market price.
This is what I have analyzed today: the volatility of consumer behaviors and the minimal loyalty of the customer with companies or brands comparing them with the loyalty of the 60s, 70s, 80s of consumers with their usual suppliers.
Since the neighborhood business is in danger of extinction and online sales are in continuous growth this is a way to retain online sales consumer of usual products.
Project Status
This idea has already been executed by other entities.
Costco, Amazon Subscribe & Save
Value Analysis
5M€/año
Retail
Interested in this idea?
We can develop it together or I can generate new business avenues for your company.
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