How does the business operate on a daily basis?
Â±50% of business is generated from walk-in clients. The staff is well trained to give excellent service and attention to each and every client. They also receive regular orders from property development companies, smaller building contractors and municipal departments.
How are the clients attracted to the business?
Group advertising to which they contribute R1 500 + Vat p.m. This is not compulsory and a new owner can decide whether he wants to continue with it.
Area Facebook page and word of mouth by their regular customers.
What Advertising/Marketing is carried out?
The larger group does advertising on a national level. The business is also prominently focused on their area's Facebook page.
Does the business have any contract work?
The business does not as such have contracts but they have made good inroads various municipal departments such as Power, City Parks, and the larger Jhb. municipal council. They were granted vendor numbers via a tender system.
What competition exists?
There are obviously the larger Hardware stores of which Builders Warehouse must be the biggest, but they are not in the immediate area of this business. As mentioned the business's niche is mixing of special paints and therefore do not have any real competition in their immediate area.
What are the seasonal trends?
The business is very much dependant on the building industry schedule and the current slow growth in the industry does affect the business. The last couple of months the business was negatively affected by the road closure in front of the store as it caused the walk-in customers to go elsewhere. The road was re-opened during September and according to the Seller business is starting to grow.