My Reality Economics Retail South Australia

B

betterinvestmentthanshare

Well-Known Member
Thought I'd Start a new thread and hope to keep it going......................what is the point?
I'm a small business owner in retail...............Window Furnishings..................Blinds, Curtains, Plantation Shutters. New residential building related, existing home related, new commercial build tender.
Hoping to give some insight to reality vs doom & gloom or hype economics ................
Been in this business for a decade.

Started in 2006 from home and moved to a leased commercial retail property in 2008.
Sales had increased on average of 20% compounding every year until 2015.

Review starts from our peak of sales 2014.

Our business peaked 2014, just under $1mil turnover...................
Since 2014, sales had declined 10% in 2015.
2015/16
Sales had decreased by a further 5% on previous year
Our cost have gone up and our mark ups have come down and have cost cut everywhere where I can where it does not affect sales income to remain competitive against the big big boys...............method of the madness..............make a smaller margin but a larger turn over. Pretty much making the same amount % of profit but working more.

June 2016
Worst sales on record..................... didnt make budget, down -36%.................I put it down to the election................every previous election has put a big dent in sales, this had a worst effect than any previous election.
July 2016
Sales had pick up............just made budget.
August 2016
Sales over budget by 45%
September 2016
over budget 50%
October 2016
Project sales 20% over budget....................could be more fingers crossed.
Keep in mind our multinational competitors out gun us with huge 40-60% off marketing campaigns......................which is all bullshit....................cant beat big dollar marketing.
November 2016
TBA

I'm budgeting for a 10-15% increase in sales for this financial year to maintain the same profit as previous financial year.

Cheers
 
Interesting. I would have thought it was not great. I just got retrenched from my job in the Building Industry. No Sales.

Have to say that it was easier than ever to get another job. Had one the next day and two other offers the following week.

Keen to hear other peoples stories on how their businesses are going.
 
Sales down 20% in second quarter of this year, coinciding with the drawn out election, I've never been a fan of using that as an excuse in the past though, but maybe there is some substance to it. Way to go Malcolm. :rolleyes:

Increased competition as well, idiots up the road sold their shop to a young couple who at least have some idea about what they are doing, also seeing more of those food vans parked in the carparks at beachfronts. That irks me, I'd love council to get in their and kick them out, after all, my rates paid for those carparks but on the other hand...... :P
 
Maybe it's not all down to price. Has your service changed? Unhappy customer spreading the love around? Try googling your shop name with the word "review".
 
I have seen a change in customer price expectations and shopping habits, I don't know about other cities but I see the high street retail store landscape in Syney about to change a lot. Where there was or currently are interesting specialty shops, boutiques, record shops, clothing shops, book shops, bicycle shops and the like I predict that the specialty stores will be gone and the shopping strips within a few years will be basically cafes, cell phone shops, $2.00 shops, nail salons, Thai massage, frozen yoghurt, hair dressers, accountants offices, bubble tea and Vietnamese rolls.
 
Tacrezod said:
Maybe it's not all down to price. Has your service changed? Unhappy customer spreading the love around? Try googling your shop name with the word "review".
Click to expand...

Nothing to do with those. :)

It's a sign of the economic downturn we are experiencing in regional Qld, rising wholesale costs which we have to absorb, combined with some new players on the field. We'll crush the bastards if we can. :D
 
My Business is fluctuating all over the place ... some good months followed by some poor months.

From the conversations I'm having with business owners in my industry, things are going down the gutter. Increasing expenses with declining sales. In the last 12 months 2 of my competitors have gone out of business, but that hasn't increased our sales.

After 12 years doing the same gig I've learnt to be grateful that I get to do what I enjoy and be more relaxed when I'm under budget.
 
I hardly qualify as a 'business owner', but I do freelance work under an ABN as a sideline, so I guess I am halfway there ;)

A big chunk of my regular work is producing training booklets for certificate and diploma qualifications. There was a dip after recent allegations of dodginess in the industry (Spoiler: it is dodgy) but has got back to normal now.

It seems to me that qualification inflation is out of control and more and more people are being kept in government sponsored training for longer in order to doctor the unemployment rate.

I would never recommend anyone to take a TAFE course unless it is just to tick a box and get a specific job. I have written the booklets for a range of courses and there is nothing in them that you cannot learn from internet searches.
 
mmm....shiney! said:
Increased competition as well... also seeing more of those food vans parked in the carparks at beachfronts. That irks me, I'd love council to get in their and kick them out, after all, my rates paid for those carparks but on the other hand...... :P
Click to expand...

on the otherhand, always remember the monthly downtrend as taking one (or two (neg geared)) for team libertarian.
Hope things pick-up for you though.
 
mmm....shiney! said:
Sales down 20% in second quarter of this year, coinciding with the drawn out election, I've never been a fan of using that as an excuse in the past though, but maybe there is some substance to it. Way to go Malcolm. :rolleyes:

Increased competition as well, idiots up the road sold their shop to a young couple who at least have some idea about what they are doing, also seeing more of those food vans parked in the carparks at beachfronts. That irks me, I'd love council to get in their and kick them out, after all, my rates paid for those carparks but on the other hand...... :P
Click to expand...
is this the biggest proponent of a free market & no gov interference wanting the council to go in & exercise their power ?. geez shiney i never took you for a hypocrite ...until today :p: ...on the other hand.

Maybe they are selling fresh seafood not frozen ?
 
renovator said:
mmm....shiney! said:
Sales down 20% in second quarter of this year, coinciding with the drawn out election, I've never been a fan of using that as an excuse in the past though, but maybe there is some substance to it. Way to go Malcolm. :rolleyes:

Increased competition as well, idiots up the road sold their shop to a young couple who at least have some idea about what they are doing, also seeing more of those food vans parked in the carparks at beachfronts. That irks me, I'd love council to get in their and kick them out, after all, my rates paid for those carparks but on the other hand...... :P
Click to expand...
is this the biggest proponent of a free market & no gov interference wanting the council to go in & exercise their power ?. geez shiney i never took you for a hypocrite ...until today :p: ...on the other hand.

Maybe they are selling fresh seafood not frozen ?
Click to expand...

I know you're just trying to wind me up. :cool:
 
mmm....shiney! said:
renovator said:
mmm....shiney! said:
Sales down 20% in second quarter of this year, coinciding with the drawn out election, I've never been a fan of using that as an excuse in the past though, but maybe there is some substance to it. Way to go Malcolm. :rolleyes:

Increased competition as well, idiots up the road sold their shop to a young couple who at least have some idea about what they are doing, also seeing more of those food vans parked in the carparks at beachfronts. That irks me, I'd love council to get in their and kick them out, after all, my rates paid for those carparks but on the other hand...... :P
Click to expand...
is this the biggest proponent of a free market & no gov interference wanting the council to go in & exercise their power ?. geez shiney i never took you for a hypocrite ...until today :p: ...on the other hand.

Maybe they are selling fresh seafood not frozen ?
Click to expand...

I know you're just trying to wind me up. :cool:
Click to expand...
who me ?....never!!
hope it all works out for ya :)
 
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