We have had a candle shop in a busy tourist town for about 20 years.It is in a good location and we have a lot of repeat customers.The business has made very little proffit in the last few years. Because our competitors are selling cheap imports,prices haven't been raised for a long time. Any suggestions on how to make more proffit?
2006-08-24 02:21:13 · 6 answers · asked by Anonymous in Business & Finance ➔ Small Business
If price alone is the issue, remember that business is in constant change.
You may not be able to compete with the imports, so, think diversification.
Get your "imagination" out of the attic. Think "new and imaginative designs". Be artistic. Think of what "ice sculptor's" create. Not to the extreme designs, but it may give you some ideas. Think decorative. Think color.
You may need some molds.
Carousels come to my mind. Imagine those, an animal for each year of a birthday.
Wedding figurines that can be used after a wedding instead of stored or tossed away.
Bride and groom, with intertwining wicks that can be lit as one.
Check out "cake pans". Could those be used?
Check out your competitors. What are they "not doing, or carrying", as well as what they do carry.
I would do something, even if it's wrong. You state "failing". What's to lose? Been there and done that.
Dare to be different.
2006-08-24 02:52:13 · answer #1 · answered by ed 7 · 1⤊ 0⤋
Marketing!!! There are many ways to differentiate yourself from your competition. I had to take the class twice in college to actually start to think with the "mind of a marketer".
I would say you first have to get customers into the store. This usually takes some kind of advertising which doesn't have to be a huge and expensive ad campaign. Lots of times tourists are attracted to stores by signs sitting on the curb or in the window out front. Once you've gotten customers into the stores, you focus on how to keep them coming back. This is what they call Customer Relations Management. Considering it is a tourist town, you can do a mailing list from which you send coupons tailored to purchases each individual made. A website e-commerce site may work well also. Which will allow customers that enjoy your products to shop from their respective home states. There are many ways and strategies to try to save the business that will not cost you much money and can be done by your current work force. It will take a little research and effort, but it is highly possible.
You may also want to look into grants for expansion. Small business that are effected by larger competitors are eligible for various grants. NOT THOSE THAT YOU HAVE TO PAY $$$ TO APPLY FOR. ".gov and .org are usually and i stress USUALLY good sites to get grant information. Check everything with the BBB or use internet to search ABC Company discussion board and blog. I was going to make a major purchase from a company once and when trying to locate the site again through search I happened upon one of these discussion boards where past customers womplained over the course of more than a year about being douped out of their hard earned money.
GREAT PLACE TO START:
Target marketing, market research. Knowing who your customers are, how much money they make, how often they are in the area, their disposable income, how they use your products, why they purchase your products.
NEXT: Stake out the competition and try to get ideas there.
Hope this helps.
2006-08-24 06:01:19 · answer #2 · answered by ushouldnoidontplay 2 · 0⤊ 0⤋
The loss is only since a few years. The competitor is selling at a cheaper rate. This is what you have said. The following may help:
1. You have talked about repeat customers; first retain them by selling to them at a smaller margin.
2. Produce cheaper variety for the newer customers and sell them to cost price.
3. When the volume increases your breakeven point will become lower and margin of profit will be more.
4. From the above, retain existing customers and try to get others for a cheaper rate.
VR
2006-08-24 02:39:23 · answer #3 · answered by sarayu 7 · 0⤊ 0⤋
Maybe expand your product line to include candle accessories like jar warmers..tart burners, etc.
Offer things gift baskets, customized candle labels for weddings, etc.
Hope these ideas help.
2006-08-24 02:30:41 · answer #4 · answered by Q.S.G 3 · 0⤊ 0⤋
Look on the internet for something else that may go with candles like candle holder,incents,sconces,get the picture. ask a question on yahoo and get answers from them
2006-08-24 02:29:04 · answer #5 · answered by brenda here 1 · 0⤊ 0⤋
You need to try a different stratergy read some business tips on this site
2006-08-24 02:23:28 · answer #6 · answered by cute chick 2 · 0⤊ 0⤋