4 Shocking Benefits of Selling Private Labelled Goods in Post Covid-19.
Are you a Convenience Store Owner, trying to figure out how you could double up on your store sales? Even in these Covid-19 times? Yes, consumers are generally hard pressed for cash, and most have become so frugal that you might imagine your Convenience Store taking serious cuts in daily revenues.
However, this might come as a surprise to you. In these very trying Covid-19 times your Convenience Store could actually be scoring it big in sales. It has long been established that sales volumes for privately labelled goods, shockingly balloon in times of economic hardships, like in this post Covid-19 era.
In late March 2020, research firm AlixPartners carried a study, which established that a quarter of US grocery shoppers actually bought and tried privately labelled goods for the first time, due to the financial stresses caused by the Covid-19 pandemic.
The study also revealed that 30% of those who tried the privately labelled goods, plan on sticking to them since they managed to save significant dollar points. Privately labelled goods sell cheap, whilst delivering hard to notice differences in quality.
Just before the pandemic, private labelled goods accounted for 16% of Convenience Store sales. As the pandemic set in, sales for privately labelled goods took a giant leap to a whopping 45%. That’s more than double what was being sold before the pandemic.
But why the sudden consumer interest in private labelled goods? Consumer financial distress. That’s the short answer. The less money shoppers have, the more thy go for private label products which tend to be cheaper, as long as those labels deliver almost the same quality as original brands.
You should understand that, here we are talking of shelf space percentage share. So if private labelled goods are now accounting for 45% of Convenience Store shelf space, that means 29% more shelf space, was wrenched away from regular branded goods.
And this shocking pattern occurs only in times of great financial distress. The pattern is also likely to prolong for years, since economic experts warn that, even if a Covid-19 cure were to be found today, the effects of the disease in the United States alone, may take as much as four years to economically wear off.
This is the strongest reason to start stocking your Convenience Store immensely, with privately labelled goods. You definitely will be able to reap the economic benefits of doing so for many years. You will also be enjoying massive sales and profits in the process.
Now let’s look at four killer ways your Convenience Store can rake in doubled digit profits during these Covid-19 times, from simply adding more shelves to the stocking of privately labelled goods.
1. Higher Profit Margins.
Private label products use the retailer’s private label. Quick and easy. There is no need for the producers to create a brand first. If you run a business, you know how expensive and time-consuming branding can be.
Producers skip this costly branding and go straight to just packaging and selling to Convenience Stores. All the costs saved by not branding, are passed onto your store, for you to give lower prices to your shoppers. You can keep some of those cost margin savings
3. Better Brand Loyalty.
There are several ways to boost customer loyalty. Private label products can easily attain customer loyalty for your Convenience Store, since the private labelled products have recently attained higher quality levels and consistency, thanks to better product innovations and improved manufacturing processes.
In the past, consumers largely saw brand-name products as superior to private labels. Today, however, they both have made a name for themselves in the world of high-quality goods. Private labelled goods have transformed into “premium labels”
for yourself. So you earn double, in that now your profit margin on each sale is higher, and you will also be selling more units each day as these cheaper private labelled goods are in high demand, meaning you get more profits from your higher sales volumes as well.
that also command a substantial amount of brand loyalty. Some consumers can even stay loyal to your Convenience Store if they know that is the only place they can find the private label item.
This can double boost your sales if you invest more money in stocking these super-fast moving private label goods.
2. Lower Operating Costs.
Private label products have to sell themselves. They don’t necessarily need advertising campaigns to fly off the shelves. The low prices and high quality, makes them naturally fly off the shelves.
These privately labelled products also should regularly be able to sell at five or six times the manufacturing price. The manufacturer enjoys massive economies of scale from producing super bulk quantities of these products. The manufacturer also enjoys massive cost savings from bulk shipping. This leaves the manufacturer room to provide your Convenience Store with huge price discounts, something actually
4. Greater Market Stability.
US Convenience Store owners and shoppers choose private label products mostly for affordability, quality and consistency. Even in these Covid-19 financial stressing times, private label goods actually enjoy steady sales thanks to lower price points.
The overall stability and inelasticity of the market can benefit Convenience Store owners, as there is no chance for shoppers to drop their purchase quantities during these Covid-19 tough times.
required of private-label goods.
So as a Convenience Store owner, you are better placed to be buying and stocking massively on these private labelled goods, as they come very cheap to your store, in as much as they are in super high demand during these Covid-19 times, as they give less stress to already stressed consumer pockets.
In fact, most Convenience Store owners are increasing their shelf stocking quantities during these Covid-19 trying times as they are seeing increases in popularity and purchase of private labelled goods.
You might find need for cash to: buy private label stocks, staff uniforms, pay for promotions, pay for staff training, and buy Covid-19 staff safety gear, buy equipment to enable customer in-store social distancing, buy detergents and cleaning materials for Covid-19 sanitation for your Convenience Store and more.
All these are resources and tools you need to be able to effectively implement the four shocking benefits of selling private labelled goods post Covid-19.
However, if cash resources are limited, you can take advantage of the “Convenience Store” loans we are offering at Norita Money Consultants Group. To learn more about our Loans, please “CLICK THIS LINK. “