What are the problems associated with traditional physical shops?

awesomewebsites · Nov 20, 2023

Let me start with one big limitation. As soon as your shop becomes popular, more shops will open in same area for same service. They will sell at lower cost and this eat up margin. What other problems you see with traditional physical shops now?

Kukiezi · Nov 20, 2023

awesomewebsites said:
Let me start with one big limitation. As soon as your shop becomes popular, more shops will open in same area for same service. They will sell at lower cost and this eat up margin. What other problems you see with traditional physical shops now?

The problem you've stated is not exclusive to physical shops, it's even worse in digital space, since it's way easier to open a shop there.
From my perspective, first big downside of physical shop is that you need a place for the shop. Renting a building or w/e you need in a good location is expensive as f*ck.
And if you haven't done that before, you don't know what to expect, so in the worse case scenario you might get in debt.

GTC · Nov 20, 2023

Considering you do it yourself and not hire anyone, this could be very time consuming. You need a place which could be expensive, you need to buy goods, store them and wait for people to buy them back one by one. This is super boring and slow. Now, if you're talking about retail chain, then the story is different, but you need huge cash for this.

awesomewebsites · Nov 20, 2023

GTC said:
Considering you do it yourself and not hire anyone, this could be very time consuming. You need a place which could be expensive, you need to buy goods, store them and wait for people to buy them back one by one. This is super boring and slow. Now, if you're talking about retail chain, then the story is different, but you need huge cash for this.

How is retain chain different? There also you have to maintain stock. You mean every work is automated there with employees?

GTC · Nov 20, 2023

awesomewebsites said:
How is retain chain different? There also you have to maintain stock. You mean every work is automated there with employees?

Yes. And they already have funding from giant corporations and banks. It's totally different from running a shop. The shop is not the main business here.

awesomewebsites · Nov 21, 2023

GTC said:
Yes. And they already have funding from giant corporations and banks. It's totally different from running a shop. The shop is not the main business here.

What is the main business there?

greenparrot22 · Nov 21, 2023

Lack of foot traffic. If the shop is in a bad location, unless it is a well known brand or something special about the shop, very few people will come in and spend money.

awesomewebsites · Nov 28, 2023

greenparrot22 said:
Lack of foot traffic. If the shop is in a bad location, unless it is a well known brand or something special about the shop, very few people will come in and spend money.

Same for online store also. Either list on marketplace and pay huge commission or make a well know brand to get orders through own site.

What are the problems associated with traditional physical shops?

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