Nice local niche to capture

[jeandearme]

Hey, guys

Just started new bussiness in a local niche that, why not, anyone can do in Your local region.

In today's world more and more people buy through internet. Everyone...except those who don't get it and are afraid of it. Who they are?

Your beloved grannies People after 60' really don't know nor want to order through internet so they must go to the shop physically.

I though: that's the problem that could be solved and is not by anyone so I decided to make a local service that's plainly shopping by the phone. Just call me, say what do You need from the shop and I will deliver for $5 + what's on the bill. Just made flyers two days ago (500 of them), just released half of them by hand to postboxes (zero response), but just today realized that I should go where my target clients are: chemistry's, churches and so on.

And I know it violates commandment of entry, but since I'm now on the fences with money it's one of those things that require little money and can provide some money.

I will post how it will go in the next days. Till then - I'm curious about Your ideas around it

 

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[Genester]

I'm confused, so you're only making $5 per customer? You will go and buy the groceries and then deliver them to the grannies? And you're only making $5 on that? If this is correct I hate to tell you this man but that's far from fastlane, Peapod is already doing this and they have infrastructure in place and warehouses where they store the produce. Peapod charges anywhere from $7-$10 for delivery plus they have surcharges for gas now. I don't see how you're going to survive, gas alone is going to kill your revenue. Heck, to make $100/day you will need to do 20 deliveries, but then again gas costs cut in and you're only making $80 now.

 

[jeandearme]

I'm confused, so you're only making $5 per customer? You will go and buy the groceries and then deliver them to the grannies? And you're only making $5 on that? If this is correct I hate to tell you this man but that's far from fastlane, Peapod is already doing this and they have infrastructure in place and warehouses where they store the produce. Peapod charges anywhere from $7-$10 for delivery plus they have surcharges for gas now. I don't see how you're going to survive, gas alone is going to kill your revenue. Heck, to make $100/day you will need to do 20 deliveries, but then again gas costs cut in and you're only making $80 now.

Oh, it meant to be like $15 because I'm charging 15 zlotys (so converting it in dollars it would be $5, but it's not like that - the value of 1 zloty is compareable to the value of $1 when You actually buy something).

So, let's keep with 15 zlotys (code: PLN). Let's say I will pay 5 PLN for petrol. It leaves me with 10 PLN in my pocket. For a less-than-hour work it's not bad in our country. So, where is the magic fastlane thing?

Fastlane (in my mind) lies in scale. When I will have let's say 10 orders/day and they will be in 2 different times I will go to the shop only twice. So, 15 PLN x 10 = 150 PLN, then minus petrol cost which is maybe around 20 PLN because I have to visit 10 places. That leaves me with 130 PLN.

But that's not the end. With that kind of revenue I can go with employing staff. For like 10 PLN/hour + petrol (mileage). Of course, to make it profitable to have anyone helping me I should have at least 20 orders for that person. Then it would look like 15 PLN x 20 = 300 PLN - let's say 30 PLN = 270 PLN - 100 PLN for ten hour labor/being available - 40 PLN on petrol = that leaves me with 130 PLN in my pocket. From other hands work.

Am I missing something?

P.S. Think instacart.com by the phone.

 

[Chopper]

I think the challenge here is scale. Although you could promote certain products from vendors, negotiate lower prices from the stores you're frequenting, sell something else to your existing customers (computer lessons come to mind), and/or start an online version to compliment the business over the phone.

Best of luck

Sent from my SPH-L300 using Tapatalk 2

 

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[Chopper]

Also, I don't attempt math without a spreadsheet so I'm not opining on the numbers posted.

Sent from my SPH-L300 using Tapatalk 2

 

[green45]

Thanks a lot to share this useful information .


-----------------
green45

 

[jeandearme]

I think the challenge here is scale. Although you could promote certain products from vendors, negotiate lower prices from the stores you're frequenting, sell something else to your existing customers (computer lessons come to mind), and/or start an online version to compliment the business over the phone.

Best of luck

Sent from my SPH-L300 using Tapatalk 2

Initially, I wanted to do it through internet, but now it's really competetive since all the bigger markets has it's own transport. Hence, they lack in speed - when You order today the most likely date to deliver is next day, which makes space for it (groceries under 3hours, again: this is what instacart is doing, but they are US only).

If till to the end of a week nothing happens with grannies delivery bussiness - maybe it would be good to channel through the fliers about online shopping thing (so orders would be from one area).

Of course, there are plenty of obstacles: I would have to register a company if I would like to take money online upfront (which is great - gives me zero risk when buying stuff) and get products on my site (which is not so cool when You think about 10k various items - could be done simpler with enter what You want and if we will struggle we will call You).

I got no time to wait more - I'm very low on cash and really doing everything to get my goals. I'm also in apps developing - I released few, but it's not a bussiness yet, so I keep doing part-time bussiness.

 

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