It is the customer demand that impacts all aspects of your grocery store business and will lead to your success or failure in this business.At the start itself, you need to understand your customer requirements and source products according to their needs and requirements.With the boom in the economy and increasing spending power, people prefer to shop at those new age shiny grocery retail stores, where they are treated to large shopping aisles with products stacked neatly on the shelves in a complete AC comfort.
You can opt for one of the two pricing methods, namely Markup (cost based) or margin (selling price based).
Grocery stores traditionally have mark-ups of 33% to 67%, or margins of 25% to 40%.
Before you start operating your grocery store, you will need to set the right price for the product, which will in turn influence the quantity of items the customer will buy, which has a direct effect on the revenue and profit of your grocery store.
The right prices will help sufficient gross profit to make-up for all the overhead expenses and get a good amount of net profit.
Also, the age group of people in your customer base would dictate the kind of products you will need to keep in your store.
Search for a prominent location at the center of town or at a busy market complex.
If you want to have your business and are wondering about how to start a grocery store business in India, then you have landed on the right page.
Starting up a small grocery store in India is a lucrative business idea as the population is increasing and the purchasing power of the average person is rising, so a grocery store is a good business option.
Having a good network with vendors is a huge asset and make sure that you don’t have a packed inventory of more than 20-25 days.
A grocery store provides all the necessary requirements needed for running a household, so basically, your target market would be the entire neighborhood of the area you want to set up your grocery shop in which would be within 1 or 2 kilometers of reach.