Factors one need to consider in setting up retail trade

[Mastergp]

Factors one need to consider in setting up retail trade

The following factors should be taken into consideration when setting up a retail trade and the include the following:

Capital:
Before setting up business, the initial amount of capital available must be taken into consideration. Consideration must be given to the money at hand for such a venture.

Pricing policy:
The retailer must take into consideration which price to put on his products. He will choose the best pricing policy example market penetration policy, market skimming or pricing above the market.

Sources of supply :
He must determine the source of supply so as to ensure constant supply. The retailer will decide on whether to buy directly from the manufacturer to whole sales so as to suit his purpose.

 

[TOZZIBLINKZ]

In most regions of west Africa there is a possibility that you may come across a retail trade store and one of the most seeing activity majority of retailers in areas of west Africa have been doing is that they always make sure that their store is close to the market for their products in which they retail. Whatever kind of product you retail it is absolutely very necessary that you are close to the people who comes to buy this product that you possibly sell.

To be more clear and elaborate what I am trying to say is that as a retailer who sell goods and services to final consumers in small quantities you need to be in an area with people of different test and preference so that they can come together to patronize your business. Location is absolutely the most important thing when establishing a retail trade.

 

[Jasz]

In setting up retail trade, the following factors need to be considered:

1. Location – The location of the establishment is an important factor which can determine whether or not it will succeed in business. You need to consider the area where you want to set up your business and what kind of customers you want there to be.

2. Market – The market one wants to enter into business with has a lot of influence on how successful one’s venture will be.

3. Competition – When setting up retail trade, competitive companies will come into play and this can lead to losses if one does not know how to deal with them effectively.

4. Costs – One needs to consider costs when setting up retail trade because they are always present when running any business venture.

5. Customer base - Your customer base will also determine how much money you make. If there are many people who want to buy your product or service and they live close by, then they will come to your store and buy from you every day. If on the other hand, there are few people who want to buy from you and they live far away, they may only come once or twice every week.