Selecting Shop Location For A Seller

An internal influence that also plays a big part in a business in Location, location is important for profit in a business, closer to the buyers means easy to make profit, especially a walk in shop also appeals to customers, as we see in the articles Masters Taree is placed before taree and closer to Tuncurry, Tinoee and Old Bar, this makes it closer to them then Bunnings does this means a quicker trip from this destination this is a smart idea, also

Store layout, merchandise display and categorization is superb to facilitate easy tracing / location. Individual store managers have liberty to adjust merchandising mix to suit local taste and placing replenishment orders. Purchasing through central office to get maximum margins, low expense

It is crucial for a business to know where their customers come from in order to select the best location for the store. Choosing the best geographic area can help in the success of the business or the failure of the business. This is why Trader Joe’s has particular criteria when choosing new store locations. Trader Joe’s is aware who their target consumer is and utilizes the data they receive to place their locations in the areas that will benefit in the growth of the organization.

'Place ' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.

Answer 2- If there should be a single location for all three companies the inventory holding cost will reduce because the product is placing at one location instead of different three locations. Moreover, by doing this the insurance and misplacing of product of cost reduce but in transit of inventory will increase because the shipments are truck load and the distance between customers and distribution centre is far. Furthermore, with this the service level improved which means order fulfilment process improved too. In addition to this, the

STRATEGIC LOCATION: When it comes to retail industry the selection of location plays a very important role. Ex. Initially when Wal-Mart was set up by Sam Walton they mainly got success due to their location strategy. They had set up stores i.e. discount centres in rural and small town areas; other reason was strategic placement of distribution centres.

4) Location- Decisions about where to locate a store are critical to any retailer’s success. Location decisions are particularly important because of their high cost, long-term commitment and impact on customer patronage. Choosing a particular location type involves evaluating a series of trade-offs. These trade-offs generally include the occupancy cost of location, the pedestrian and vehicle customer traffic associated with the location, the restrictions placed on the store operations by the property managers, and the convince of the location for customers.

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $185 in either case.

For example, more stores in San Diego are stocked with tourism in mind, not all items are practical for daily living. When Daniel stops at the convenience store on his way home from work he typically does not see a full range of products. Usually, Daniel purchases candles to make his home smell good. Candles make up more than half of the air care sales, so this is common consumer behavior (Kraushaar, 2015). Being in a metro mix area controls the store size and contributes to the higher price ranges. This affects how and where Daniel purchases products.

Customers’ occupation are another critical point in gaining competitive advantage for a firm during competition. Different occupation consumer needs different goods and services from sellers. For example, a blue collar worker will buy normal clothes to wear for work, but a company president will buy expensive clothes. Potential customers in CityONE Megamall mostly are students. Students always look for special goods and services with lower price. Since potential

The following graph demonstrate the demand curve of how many items of a product or service a consumer would like to purchase at different prices. Now by having the product at a lower price, the more a consumer is likely to buy. For that same reason it can be concluded that the price is one major factor of the product demand.

If the price in your shop will be higher than competitive one the low-income customers will skip the trip to it which will lead to decrease in profit.

Place – Place is also very important in the terms of business because before opening the business they should consider the location properly that are they targeting the proper market according to their business. Place must be easy accessible for customers, suppliers etc.

The company has to decide between the two locations based on their virtues, availability and higher margin of profit.

customers is a key consideration and they strategically locate on the streets to avoid formalisation