Retail Trade

Organization of a Retail Trade

There is much substantial difference between the organization of a retailer's business-house and that of a wholeseller. The retailer businessman, before commencing the business, has to consider over various problems. If there is no prior thought over these problems .from beforehand, he may have to face many odds in the future. For the success of his organization, an ordinary 'retailer must take into consideration the following matters:

(1)   Nature of Business. First of all, the retailer must consider as to which of the business should be undertaken. It is also very necessary to think as to what type of the commodities is sold. While making the selection of the business, the businessman must also keep into view his personal interest and the quantity of the capital required. If any business is not taken up with due interest, the desired success is not achieved in it. In this connection, the past experience too is to be borne into mind.

(2)   Appropriate Location. Since the retailers are directly concerned with the consumers, hence, the retail businessman first necessarily think over the situation of the shop, well in advance While making the selection of the appropriate location, it must be borne into mind that the, shop be located, nearer to the customers be quite close to the shops dealing in the concerned products, and the customers are not put to any inconvenience in coming and going Ordinarily we find that in some big cities, some markets become reputed for the business of some specific commodity, for instance, the Kasera Bazar of Indore is renowned for the utensils. If a business man opens his shop in such market, he gets more success there.

(3)   Determination of Purchase Policy. After having ascertained the location of the shop, the retailer must decide his purchase .policy. While determining the purchase policy, the retailer is required to think over the matters, such as whether he has to purchase the stock from the market for cash or on credit, whether the product., are to be purchased through some intermediary (agent) or by self which brand of the commodity has to be purchased, how much good: has to be purchased.

(4)   Determination of the Sales Price. It is also very essential to determine the price of the products to be sold to the retail trader. While determining the 'sales price, competition too must be borne in mind. The attitude of earning the maximum profits, while selling the goods, too shall be erroneous to be adopted.

(5)   Decoration of the Shop. A retailer must also pay attention over the inner and outer decoration of the shop. While decorating the shop, the following points must be borne into mind:

                           i.)   There must be an attractive signboard outside the shop. The signboard must be placed before or in front of the shop so that the customer could easily see it. For making the signboard attractive, providing for the electric light too is very necessary. While making the board attractive, the businessman must never care much for the expenditure.

                         ii.)   There must be sufficient provision of space for the parking of the customers' conveyances.

                       iii.)   There must be adequate arrangement for the customers to sit or wait, for standing. Really, the furniture too ^is quite important during the decoration of the shop.

                       iv.)   The counters of the shop must be transparent.

                         v.)   The products must be so displayed that the customers' at­tention is automatically attracted toward these. In other words, it might also be said that the decoration of the products in the shop must be so arranged that immediately with the customer's entry into the shop, he must become aware of all the products available there, since on many oc­casions, merely by the sight of the attractive display of products in the shop, the customer proceed towards them for purchasing.

                       vi.)   The products must be so placed in the show-case that there is no difficulty in taking them out.

(6)   Advertisements and Sales-Promotion Activities. In the present age of the cut-throat competition, the advertisements significantly contribute to the success of the business. For promoting the business, which of the sales-promotion activities would be re­quired should be kept in view before selecting the media of publicity and advertisements. For the retailers, the local media of advertise­ments are the most suitable ones.

(7)   Capital or Financial Requirements. It is also very necessary to consider over the financial needs. Capital is the life­blood of the business. How much of the capital shall be required to hire a premises for the shop, for procuring the licenses, for arranging the furniture, for the provision of light and electricity, for extending the credit facilities and for purchasing the products, are also the matters which must be considered well in advance.

(8)   Appointment of the Sales Representatives. The sales­men and sales personnel, efficient in the art of sales, must be ap­pointed for attracting the customers.

Besides considering on the above-mentioned matters, some pre-thought must also be given to the matters like the size of the premises needed by the retailer for the shop, number of windows or counters, etc.