Forums: Discussions for entrepreneurs and small business.

Dear all,

I am a franchisee of local business service center franchise - one of the leading local franchises with 90+ stores nationwide.  I currently doing business in Tangerang, Indonesia (the capital city`s supporting region).  The franchise concept is pretty much similar to PostNet, Going Postal, and UPS Store of US - this also includes the line of products.  Please visit www.multiplus.co.id for reference.

I`m having difficulties growing my business in the past 2 quarters - even worse, sales declining sharply and now I`m in panic mode!  

We have questionnaires going, and the only major respond from customers is: prices are too expensive!  But, how to cut prices off if you have to pay royalties & marketing fees to your franchisor? Price-war is not a good thing, I think, since we target medium to high income households and SMEs..

I`ve done everything I can - flyers & brochures on busy streets surrounding my store, building an informational webiste to cater customer`s need for info (www.multiplus.biz), running ads on newspapers, advertise in local regional info websites, throwing a sweepstake for 6 months period ("a mobile phone for lucky customer - every month!"), discounts and promos on products and services, free delivery service, and other little things to promote my store (mostly free and online).  For next month, I will provide in store and e-mailed newsletter to customers (yes, we have a membership program from my franchisor)

Of course, Indonesia`s economy tends to slow down this 2007.. but this is not a valid excuse to say that it`s ok for my store`s sales to slow down! However, at least 3 other franchisees`s stores nearby also experiencing sharp decline in sales - I know it`s not seasonal! My assumption - bad image on brand name? saturated market? improving local, sole proprietor, business services?

As I read from other postings in this forum about boosting sales on commodity products and services providers, we also sell commodity products & services - photocopying, internet access, stationeries, digital printing, phone & fax, etc. - thus, the only way to go is to add value. Any ideas?

USP? Is "one stop solution for your business and personal needs" enough? but, more smaller competitors also do the same thing that shout "one stop solution" - all with lower prices!  better service quality? better hospitality? sure, they are good things to provide, but they aren`t really what people expect us to provide - after all, again, we offer commodity products and services - with better "packaging" and quality, but higher price tags (!) - I really need a new USP! any suggestions?

Any suggestions on boosting my store`s sales? Help!

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Selling commodity products in what sounds like a saturated market is a tough place to be.  We all know that`s when consumers go for the best deal.  So yeah, you need a differentiator, a USP.

Is there a service or product that you do not provide that is related to your industry, something that your competitors do not offer?  What I am thinking is that at one point, someone thought to offer copying or fax services with mailing services and at the time, that was new.

As an example, I`ve seen some mailing places here in the US that sell greeting cards, usually not the business oriented places.  Cards are not just a product but something that also gets people to purchase postage.  I don`t know if you already do that or not but it is the kind of thing I am thinking of.

(I always wondered why Hallmark stores never had a few writing desks, stamps and an outgoing mailbox.  It`s been a long time since I bought greeting cards at a specialty shop so maybe they do nowadays.)

Anyway, I don`t know if product selection is controlled by your franchise but I`m just brainstorming here.

Thanks for your comments CampSteve.

Product selection is pretty much controlled by my franchisor.  However, a small amount of freedom is given for products highlty related to the current product line.  Anyway, greeting cards are already available in-store.  Also other copying and fax services.

We currently in a development process to co-op with non-profit organisation for a deal looks like this: "free internet access for someone who cares about our children`s rights to have proper education" - free internet access provided to customers who are willing to donate any amount of money to the non-profit organisation.  Perhaps being a philantrophic biz (publicly) would be considered a USP? What do you think?

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Biz Penguin - small business ideas, tips and tools
AsepOnde.com - online business and make money online tips