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Business is getting smothered.

ChinaMan · 3 · 1170

ChinaMan

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on: Dec 15, 2014, 03:40 AM
Small store for bubble tea and shakes.

We've been operating for a year now and the decline has been pretty rapid.

Last year the first 5 months business was great.  And then school went on break and then the rainy season.

We have close to 6k likes on facebook but even that has slowed down.

Pricing not an issue, Quality not an issue. Ambiance not an issue.  Location seems to be the issue.  We're a little bit away from the town proper where the main saturation of students are.  Competition has gone on the rise, about 10 places to choose from that are much closer to the town proper. I strongly believe thats the main problem.  Also we lack the space for food. The place is just too small to cook.

When we started there were only 2.

The store makes me angry, demoralized at times. 

Options... Close? Relocate?  I made most of the money back from construction which was about 500k in the first months.  The equiptment I can transfer to another location... So its just wasted effort and I bought myself a bunch of equipment...

What do you guys think? I don't know if customers can taste the difference, but I can...

You win some, you lose some.


richpulubi

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Reply #1 on: Dec 15, 2014, 10:23 AM
Wow, I feel for you, man.

Your final decision will actually depend on the present and future potentials of you business/product.  With 10 competitors, has the market grown enough to sustain all of you?  Is there a better location for you?  Do you have a price advantage?  Flavor and taste are really very subjective...especially if it is only you who can 'tell'. 

If the potential client base is flat...then how do you compete?  What is your competitive advantage?



bauer

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Reply #2 on: Dec 15, 2014, 10:22 PM
@ChinaMan,

You clearly know the answer, competition drives down sales.  Supply increases a lot while demand remains the same.

What are your options,

Close the business --- your capital bleeding ceases.

Continue the business ---- be ready to add more capital to outlast the competition (I'm sure your rivals are feeling the same) and increase your products' demand (lower price? bigger space?, etc.) 

There are only two ways to survive.  It's either solve the supply issue or solve the demand issue --- best if you could solve both at the same time (most difficult).

Your realist on the ground,

join me on twitter: @bauerfilipino

« Last Edit: Dec 15, 2014, 10:24 PM by bauer »


 


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