How To Run a Small Business

[CanadaSue]

Within a 15 minute walk from my home are 6 convenience stores - 5 of them stand alone operations, the sixth, part of a gas station. All are very small, 'hole in the wall' operations; comparable to bodegas in NYC. Here, I refer to them as 'Patelerias' as most are run by Indian immigrants & a common surname is Patel. Running a small convenience store is a tough way to earn a living. YOU staff the store; you, your spouse & any children or relatives you have old enough to do the job & not want much money.

With so many stores nearby, (the market is mainly low income/welfare clients), the competition is fierce. There is one I avoid completely - it's a bit larger than most & thus offers more of a range of groceries for those who won't make the effort to walk the extra 10 minutes to the grocery store. It also sells a lot of drug paraphernalia & can have some REALLY sketchy customers.

The one I use is not the closest, not the largest & not the cleanest. Ownership changed about 7 weeks ago. It was okay before, decent service but the new owners who previously were silent partners in the store, are awesome. We're in there almost every day - their soft drink prices are the lowest for miles. I could easily buy the dozen or so I drink a week all in one go but both SO & I enjoy the walk & chatting with the owner. I buy my scratch cards there & they have a few items that are actually considerably cheaper than the nearby grocery store.

We noticed changes within a week of the new management taking over. Every customer coming in is greeted & if they're too busy at the cash to greeet you as you come in, you get an apology for that when you're there having your total run through. The young owner & his wife made it a point to learn all their regular customer's names within the first 3 weeks. Even better, regulr customers who come in for the same items - certain brnds of cigrettes, certain candy bars - they know that too & will often have them out on the counter before the customer gets to the cash.

They repositioned certain items to improve traffic flow & slowly, over a month, gave the shelves, walls & aisles a good cleaning - much needed! They installed better security cameras. They 'learned' the neighbourhood & are carrying stock that WILL sell, as well as dropped stock that won't. They made a genius move. A lot of moms can't be bothered making their kids a proper school lunch. Every school morning at six, she can be seen at the window in the small kitchenette in the store, gloves on & making sandwiches. Staring with the sandwiches - which they vary daily - they pck a lunch - sandwich, juice & a decent sized piece of fruit... & sell them for $3.25. Every week, they're making more & more & selling them all. The one week they make fewer is the week before welfare cheques come out - genius. They know when people have money & are likely to blow & when they don't... helps with the profit margins.

A few days ago, I found a dead mouse just outside the store - he wasn't there but I mentioned it to his wife. She doesn't like meece - dead or alive. She was happy enough to let me remove the carcass, (she provided the gloves) & it garnered me a free root beer.

We were in today & he was happily clearing the chips shelf s an exterminot watched & checked out things. He was very open in announcing to me & others that they seemed to have a rodent problem. He INTRODUCED his exterminator & told all the customers that he was havign the place cleaned out properly, all visible means of entrance sealed, traps set & a monthly monitering program instituted. He asked his customers to please check for any signs of rodents on any item they picked up & to please let him know if anything was found.

I was pleasantly taken aback. It's rare to find that kind of openess even though any establisment I've seen seeling food items has meece at least periodically, especially when the premises are old. I didn't see any upset customers - most looked as impressed as I felt that there was no attempt to hide the issue.

I have seen, in the last 7 weeks, a significant increase in the number of customers to this store. I've also seen a whole lot of people in better moods. The couple are very pleasant & polite but they're not stupid. They went through the initial trial of every scumbag around trying to get their cheques cashed at the store - even though they have a sign stating they don't do that. They've nailed a couple of shoplifters & equally promptly... had them charged, including a few juveniles.

Some days, I'll walk up to the store during their quiet times. Whichever one of the two is on duty is either sweeping up the steps or tidying the little parking lot or wiping down/reorganizing something in the store. And cinresingly, there are fewer & fewer quiet times.

I hope their net cash is increasing as fast as their customer base appears to be. They're working hard & really paying attention to the little details that matter to customers. They're blowing the other local stores out of the water. I'm willing to bet in another ten years, they'll own ALL the local stores.

[Twoolf]

I believe what they are experiencing is called "the American Dream". Work hard, be a part of your community, and you will succeed. Native born Americans have forgotten that. They have as sense / expectation of entitlement. My brother is totally worthless because his ass was kissed by mom and dad from the day he was born, and is still trying to find some woman to take care of him. I was unexpected and have had to fight my way to the top. I'm better for it, and so are your shop-keepers. They understand that if you want something, you have to WORK for it. I am proud for them, and welcome them to the community of true Americans.

[rb.]

Our closest store is very similar too, Sue. It's a Macs, so I assume they must work within the franchise framework, but they seem to be stretching all they can out of it. Youngest DD and her friends go there almost daily for coffee ( they have a small seating area), and I haven't once heard her say they weren't wanted there. That's unusual in this city for young teens. The kids prefer it over the Timmy's across the street. I can go there after a 6 month absence, and he'll still pull out the right cigarettes as I approach the cash, and stopped asking if I want a lottery ticket after the first time when I told him I don't buy them. They kept one employee that was there when they took over...he has the same behaviour, always did.

[Mama Alanna]

Originally Posted by Twoolf

I believe what they are experiencing is called "the American Dream". Work hard, be a part of your community, and you will succeed. Native born Americans have forgotten that. They have as sense / expectation of entitlement. My brother is totally worthless because his ass was kissed by mom and dad from the day he was born, and is still trying to find some woman to take care of him. I was unexpected and have had to fight my way to the top. I'm better for it, and so are your shop-keepers. They understand that if you want something, you have to WORK for it. I am proud for them, and welcome them to the community of true Americans.

Well, in Sue's case it's the Canadian Dream, but the sentiment still holds. Go, Mr. & Mrs. Patel!

[Potemkin]

We noticed changes within a week of the new management taking over. Every customer coming in is greeted & if they're too busy at the cash to greeet you as you come in,...............

A several years ago someone did a study on shoplifting and what were the best preventative measures to prevent it.

The cheapest and most effective is to greet everyone coming in the door.

It established knowledge that management knows they are in the store and watching them.

Honest people see this greeting as an attentive store employee offering to help.

In larger stores staff is should always ask the customer "Can I help you". When done in reason, this is seen by honest people as an attentive employee.

To a shoplifter the store employee appears to be "watching" them.

Shoplifters and other ner do wells see these as a threat.

Looks like your new store owners are reading the manuals. Maybe they read this
http://www.crimereductioncanada.com/...Shop_Theft.pdf

Greet customers as they enter the store. Courtesy and attention are good for business and bad for the shoplifter. Shoplifters shun attention.
...

If you suspect a shoplifter, pay this individual a lot of attention. A customer will be flattered, a thief is likely to rush off.

(Of course about 80% of "store shrink" is theft by employees. )

[CanadaSue]

Another aspect of that - customers who are known by name & feel welcome in the store start feeling a little invested. I've noticed customers drawing the owners' attention to other 'clients' in the store they thought looked a little sketchy. Honest customers, (the vast majority), don't want 'their store' ripped off.

I like their attention to detail. The fridge for cold drinks was badly set up - the most popular soft drinks was hard to easily reach... especially gfor me who tends to walk in there AFTER going to the grocery store with a full backpack. I felt like a semi trying to negotiate a complicated turn! He noticed & switched the location of drinks so that it's more of a straight run in. He cleared a bit of space right up front too, so people coming in already carrying packages had a little spot to place them while they made their purchases & paid. He not only cleared the spot, he put down a small rubber mat which he or she can be seen disinfecting every day.

I think his smartest move was placing the screens from his newly installed security system right where everybody can see them... right at eye level when you walk through the door.

[ltow]

I remember a store like that, but it was a bit of a hardware store - no food.
They used stickers and the prices were handwritten on each item.
There was a bell that rang when you entered.
The shop keep lived in the flat above.
Of course that was back when you had to ask if they took checks.
Otherwise it was all cash - back before anyone had heard of credit cards.

[Feather]

Sue you hit on the reason we go to one grocery store around here. They get to know their customers. When they see me come in they get out a ket to the electric cart. DH went in today to get a few things. I didn't feel up to going in and he was asked by several people if I was ok. That's why we spend our money there.

[Coyote]

I deal with several trapping supply companies that could be considered "small business(es)". Competition is high and the market is fairly small.

Price and customer service is the name of the game.