Clothing Affiliate: Open More Stores, Share Costs And Make Money.

It is the expectation of many enterprises to encourage franchisees to open more stores. In fact, for enterprises and high quality franchisees, this is a win-win thing. But in my training process, many enterprises (or total generation) developers do not understand clearly why they want to open more stores, nor can they stimulate the development desire of franchisees in the professional field.

First of all, it is clear that the shop owners who may open more of us must be high quality franchisees. They have the mentality of doing business, making profits in the process of cooperation, and having a pleasant desire for development between manufacturers. Profitable and pleasant business is the foundation of many stores, and the desire for development is the guarantee of many stores. This article analyzes why we should open more stores, and actually guides his desire for development from a professional perspective.

First, multi stores can share management costs.

What are management costs? In a training session, I arranged the topic of "why did I open a brand store" again. A student shared a classic, she said: "we, anyway, basically put all the energy on this brand, a shop is also done, two shops are also done, and opened another one."

The "energy" mentioned here is actually a kind of management cost. In fact, franchisees have a lot of things to learn when they first open a brand shop, such as the characteristics of goods on the goods, product characteristics, learning ERP software and so on. In the process of operation, they must manage the shop assistants, and deal with logistics, banks, advertising companies, goods, promotions and so on, which really takes a lot of energy. This is a kind of "management cost".

In other words, if the first store has to invest 10 of its energy, then second shops may only need to add 5, such as learning the ERP software of an enterprise, learning a shop, or two shops.

Two, more stores can revitalize goods.

First of all, after opening stores, the total volume can be reduced. If a store needs 150 thousand of the goods (shop + inventory), two stores may need only 250 thousand of the goods, this is because the stock in stock in the first store can be put in second stores, this is the "1+1<2" economic law.

Secondly, based on the reduction of total volume, the capital turnover rate can be improved. For example, in the above example, it used 250 thousand to do 300 thousand business, increasing the utilization rate of funds, that is, to do more business with less money, or to raise the turnover rate of funds. Raising the turnover rate of capital is actually the principle of "small profits but quick turnover". If 100 yuan a year revolving once, gross profit 20%, then a year can earn 20 yuan; if a year can turn around three times, that is to say, raising the turnover rate of capital, even if the gross profit is low to only 10%, then at least 30 yuan can be earned.

Third, we can reduce stock pressure by exchanging goods between stores. There must be some goods that are not salable in the shop, and it is reasonable to have the right stock. More stores can increase sales opportunities through store spanfers, reduce the possibility of inventory, a common sense is that the store can not sell goods well, and it may still be able to take goods in another store. However, here is a reminder that stores should consider complementarity. First, do a good job in the functional positioning of shops, such as taking profits at the right price, dumping the "sewer" and doing image, etc., the stronger the complementarity of the shops, the greater the overall benefits will be.