Merchandising Franchises UK – Merchandising Franchises For Sale UK
The merchandising franchises are dominated by products characterised by two features, they are high margin, and are not consumer needs. These products are the definition of discretionary spending, but a combination of habit and addiction causes people to buy a large consistent quantity. Merchandising franchises are famous for being an enormously stable industry with strong cash flows, and a great track record of weathering economic downturns.
From an investor standpoint merchandising franchises are great businesses for those who might not have the experience for a management franchise. A new businessperson will find the merchandising franchises easy to understand, as they are themselves a consumer of many of the products on offer. This does not mean that anyone can just start a merchandising business; there are contracts with suppliers that limit competition, and a limited number of good locations. These two factors make it a competitive and difficult business to get into, but once an entrepreneur has the opportunity they have a high probability of success.
What are merchandising franchises UK?
Any business selling consumer goods generally characterised by a high turnover, or rate of consumption. This allows for the opportunity to have many repeat customers; greeting cards, cigarettes, and snack bars are all considered to be merchandising franchises. Many used goods stores also fall into this category as people can buy and sell items on consignment.
Trendy Merchandising Franchises
It might be tempting to assume the merchandising business is a rather boring business, where there is little innovation. After all it is difficult to innovate products such as chocolate bards. Such a characterization of the merchandising business would be an incorrect one. The fact is the changes in the modern economy have led to significant innovation in the sector.
- Used Goods – The use of electronics and other products that are now often traded by consumers before the end of their lives means there is a booming market in used goods. Everything from high-end handbags, to high-end cellular telephones is in demand on the second hand market. This is because these goods are so expensive most consumers cannot afford to buy them new, and those who can afford them change them up regularly. Many are therefore looking to sell their old, lightly used, and still functioning device. And there are many consumers ready and willing to pay, the margins in this business can be quite substantial, often in excess of 100%.
- Confectionary Vending – Confectionary vending is a classic industry, and one each person is brought up to be a customer of from a very young age. Chocolates and other sweets are consumer products that are hard to resist, even when one is on a diet. The sweet nature of the product means buying a confectionary bar every time one is out is a habit for many. These facts make confectionary vending a great business, both in store and in vending machines, as there is ample opportunity to build a steady repeat client base. Vending machines in great locations are particularly attractive because of their low labour costs.
- Tobacco & E Cigarettes – While smoking is definitely on a downward spiral, the reality is conventional tobacco is not only habit forming, but for those selling it a great source of steady cash flow. Cigarettes are marked up by over a thousand percent above their cost of production leaving lots of room for their manufacturers, distributors and sales people to make a pile of money. In terms of innovation E-cigarettes are absolutely booming, the electronic cigarettes deliver nicotine to the “smoker” without any of the tar and other chemicals. When one of these fake cigarettes is smoked, the need for a real cigarette is greatly diminished. Selling the high margin cartridges is a great way to build a long-term sustainable cash flow.
- Magazines – For publishers the magazine business is a low margin business. They can barely sell enough advertising and copies to cover the cost of their production. Stores and vendors on the other hand often make a several hundred percent markup over the cover price on each copy. Add to this the consumer’s habit is to buy each edition that comes out, and you have a business capable of generating a substantial amount of cash.
Merchandising Franchises Investment Requirement
Some merchandising franchises do not require a substantial amount of investment. At the very high end they top out at fourty thousand pounds to establish, and at the low end with vending machines and small stores cost between ten and fifteen thousand. The later number is dependent on the size and location of the business. Therefore they are a great opportunity to open a new business and make a substantial living.
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