Mobile shop..where to start.

[friedfrog]

Hello everyone.

This is my first post. I live rurally in a part of the country where there are 55,000 people in a 20 mile radius of me most of whom are 3 miles or more away from a local grocery shop. The public transport links are virtually non-exsistent and I feel that there would be a good market for a mobile shop, selling everyday items such as bread, milk, fruit/veg tobacco etc. etc.

A couple of questions i'd like to pose.
1; I would like to canvass local opinion as to the potential for a mobile shop. Do I need to register with data protection or similar to go knocking on doors for opinions? If so, how/where.

2; If I can determine a need for a mobile shop, how best would I go about forecasting profit margins?

3; would I be better off going to "cash & carry" myself or would a "cash & Carry" make regular, possibly quite small volume deliveries to me in a cost effective way?

4; What licenses would I be likely to need and where would I obtain them?

5; Would insurance differ much from a vehicle which people "walk on to" from a vehicle where the customer stands "outside"?

6; And finally, well for now anyway. does anyone know of a place to look either for a ready converted van for the purpose. Or a place that can convert a van for that purpose?

All the best,
Anthony.

 

[Merchant UK]

firstly, i would get 10,000 leaflets printed witha a questionaire on the services you'll be providing and would the customer be interested in your service.

Not only have you just completed your first bit of market research but now have a fairly decent database of potential customers, what more could you want?

So get your leaflets printed and offer an incentive to complete them i.e £100 worth of free groceries to the first one picked out the draw, see what i mean.

Year ago i remember the mobile shop man, nowdays its disappeared, replaced by out of town supermarkets. but there is still a need for this type of service even if its for the old folk that don't get out much.

So get your questionaires done, ask what people want and what the require, after that you can't really go wrong,

You don't need any licenses , unless your selling alcohol, and i would guess you'd need some form of public liability insurance even if the customer stands outside the van, remember you'll need business insurance for the van.

good luck

 

[ThePublisher]

I recall years ago seeing a mobile saddlery shop which somebody had converted from a mobile library, might be worth looking for as shelving was already in place.

 

[Merchant UK]

A nice big Luton Box type van will suffice, make sure you make steps into it and kit it out with shelves, keep an eye out for shops closing down in your town and make them an offer on shelving and the such

 

[papverpoppies]

A nice big Luton Box type van will suffice, make sure you make steps into it and kit it out with shelves, keep an eye out for shops closing down in your town and make them an offer on shelving and the such

Some of the vans that have visited this Village, an old ambulance, the square ones from the 60 and 70s, an old bedford box van (I think) one of those horse boxs again the large square one - it seems that so long as people can stand up in it, then anything goes.

I do not know where you live, but contact your local Council as well as Age Concern (or Age) as they are now called, and see if they can give you any help in telling people about your service.

In many areas, Age are employing people called 'Village Agents', these agents are employed to help the 50+ of the parishes they work in, with all manner of problems, and of course transport (or lack of) and getting to the shops is a problem they face daily. So well worth you seeking both of the above out, they can only say no!


I think mobile shops are going to become useful once again as rural people struggle more and more to get to the shops owing to high fuel costs, and lack of bus services..

Good Luck


Poppy xx

 

[Business1Solutions]

Thinking about it - that is a great idea!

I guess you will not be doing it everyday - just like 3 days a week?

I think to start with as you have said it is best to knock on the door and ask people because most people will not fill out questionnaires in the post.

Then if you get a good result you should get loads of flyers/leaflets designed and printed, hire a number of reliable teens to post them!

Good Luck

 

[mobyme]

I would do a great deal more research before you go into this. I live in a very rural village with the nearest shop more than six miles away and the nearest supermarket more than twenty. Lots of people have tried to operate a mobile shop but all have failed.
The mark up you need to cover your expenses is huge and while people will use you initially as a novelty; they will soon drift away and go back to get everything once a week from their nearest supermarket. You cannot compete on price or choice.

 

[friedfrog]

Hello again,
thanks for all the input.

I'm currently pricing up stock and as a rough rule of thumb I'm looking at around 25 - 35% markup on each item that I sell. Would that sound about right to any shop keepers on here?
Also I'm working on the presumption that on the route I intend to take there are almost 20,000 properties with just over 50,000 residents. So if I can get 1 in 20 houses on each run, i.e 1000 customers per run to all spend aprox £2 each I should make £500 on stock and when I take away total running costs such as diesel, insurance, tax and N.I. etc I'm rekoning I should roughly make a daily profit of £250 - £320.
Does anyone think my rough expectation are way off the mark?

 

[kate1]

I used to live in France, and this was very popular, it was very rural though, and alot of elderly people that couldnt get to the shops. But a very different eating culture and tradition there.

I couldnt say how it would work here.

Like other posters have suggested, would definately do more research in a form of a questionaire or something.

 

[papverpoppies]

Hello again,
thanks for all the input.

I'm currently pricing up stock and as a rough rule of thumb I'm looking at around 25 - 35% markup on each item that I sell. Would that sound about right to any shop keepers on here?
Also I'm working on the presumption that on the route I intend to take there are almost 20,000 properties with just over 50,000 residents. So if I can get 1 in 20 houses on each run, i.e 1000 customers per run to all spend aprox £2 each I should make £500 on stock and when I take away total running costs such as diesel, insurance, tax and N.I. etc I'm rekoning I should roughly make a daily profit of £250 - £320.
Does anyone think my rough expectation are way off the mark?

You will have to compete with the supermarkets (which is almost impossible) to make that sort of profit every day.

Although I think there is a call for this type of service, people will only use you, for emergencies, if you are very expensive.

If you look at the cash and carry prices, they cannot even come near to some supermarkets prices.

I know some people who run shops and catering stores, and buy from the supermarkets - for this very reason.

So you are going to have to be very price aware, and shop around for the price cuts - which means keeping your eye on the ball.

Also fuel is very expensive, which is going to be one of your high running costs, if you only sell £2.00 worth of goods in one village, but it has almost cost that in fuel - you are on a loser.

Also you need to know what people would buy from you, so I think any research should also look at that aspect.

No good carrying A, B C, if all they want is X, Y Z!

Are you going to have pull up places in certain areas, because one draw back is the weather, people will stand around in the rain.
How about offering a drop of service.

PS you really should contact some of the organisations I mentioned in a previous posting , in respect of older people.

Remember some older people do not venture out side, or they may not be able to get up into your van etc etc, so you could be missing possible customers.

You will be operating on a very tight margin I would think, so you are going to need all the customers and help you can get.

Good Luck

Poppy xx

 

[friedfrog]

Thanks Poppy for your previous posts. Very useful info. I have made enquiries to AGE and await a response from them.

I have 2 routes in mind, one route to be done Mon, Wed & Fri. and the other Tue & Thurs. I also intend, if all goes reasonably well to run a seperate delivery service for people that want stuff I either don't stock or have run out of. I'm in touch with a few local farmers who have expressed interest in selling there fruit, veg, meat, eggs etc. via a mobile shop, a few of which are happy for sale or return, all looks quite promising. Also there is a couple of log sellers... if you know what i mean (logs for log-burners) who would like me to take orders on there behalf as well as a coal merchant who will bag up 25kg & 50kg bags of coal & coke for me to deliver on a seperate delivery service.

I don't expect to become a millionaire from this, all I want is the flexibility to run a small concern that will pay me a little more than what I currently get as a single parent. I've found it very difficult making ends meet since I split with my wife 2 yrs ago and as I have young kids to look after its very hard finding work that will give me the time I need to look after them.

If i'm self employed I can work around my kids schooling and be there for them without some spotty hitler youth type threatening me with the sack cos my kids have chicken pox or something.

 

[imaggroup]

How about, creating a small catalogue with an order form, pick the completed order forms up on say the Monday and deliver the goods on a Tuesday? It means you can just buy the stock you've already got orders for?

Almost like ordering your shopping online but for people that aren't switched on to the internet?

You could even order your supplies from Tesco online say if the prices are good, have tesco deliver to you in bulk and you distribute the orders to your customers with a slight mark up or delivery charge?

 

[Philip Hoyle]

I think you could be onto a winner, but you really need to do plenty of research and thinking, and then do even more, and more. This is definitely not something to do on a whim with your own preconceived ideas. What you think will work is probably the exact opposite of what your customers would want.

Have you got your percentages right? Upwards of 25% sounds too good to be true - maybe for fresh fruit & veg, but can't see it for normal grocery ranges, especially when you're going to have to compete on price with the supermarkets. People are already buying their groceries from somewhere, probably getting a lift to the local Tesco or getting friends/family to buy stuff for them - if you're a lot more expensive, they won't use you even if you are more convenient. You'll just get people wanting the odds and sods they've forgotten to get. People will still be getting their booze and fags from elsewhere as well unless you propose to sell that kind of thing as well.

Whilst groceries may be a door-opener, I think you'd be more successful with other spin-off products, particularly heavy things like potatoes, pet foods, fuel as you rightly say. Also don't forget fresh and chilled foods (you'll need a fridge) for milk, cheese, cooked meats, fruit juices, etc. Also don't ignore possible passing trade and impulse items such as cans/bottles of soft drinks, possibly a freezer for ice creams/lollies, etc.

I think your also being widely optimistic about the number of customers you will have per day. You really don't want a thousand customers spending £2 a time - work it out, you couldn't possibly fit that in, as well as driving, etc., in the available time. You need a hundred regular customers spending £20 a time. 6 hours on the road is 16 customers per hour if you have 100 customers - even that is probably hard to achieve if you're constantly moving your van around, especially as some of your target customers will be elderly/disabled and will take ages to walk to your van, climb aboard, look around and pick what they want, then climb off again, no doubt wanting you to carry their stuff back to their house. I'd say that you'd be better doing each area just once a week rather than 2/3 times - and as most elderly/disabled will have family at weekends, the best days will be tues,wed, & thurs - right when they're unlikely to have anyone coming to bring them stuff.

Finally, you mention your child care etc. You do realise that having your own business will mean you're really going to jeopardise it and lose business if you're not reliable and don't turn up outside peoples' houses at the usual time and day. People, especially, older people, will get to rely on you and will be VERY disappointed and distressed if you don't turn up. That means you won't be able to take a day off if a child is ill and will still have to do the regular runs in school holidays etc. Have you thought about who's going to cover you when you're ill or want a holiday?

 

[friedfrog]

Finally, you mention your child care etc. You do realise that having your own business will mean you're really going to jeopardise it and lose business if you're not reliable and don't turn up outside peoples' houses at the usual time and day. People, especially, older people, will get to rely on you and will be VERY disappointed and distressed if you don't turn up. That means you won't be able to take a day off if a child is ill and will still have to do the regular runs in school holidays etc. Have you thought about who's going to cover you when you're ill or want a holiday?

My hope is that things regarding the kids will at least run smoothly for a few months. At which point I have a couple of friends in mind who would more than likely be happy to cover for me on a casual basis.

Still a fair bit of research to do before taking any kind of plunge. But hopefully if things come to fruition coupled with a bit of luck, I'll be able to gain momentum.

 

[Mister B]

Well good luck to you, I think that it's a great idea.

Like others have said, I think that your conversion rates are way too optimistic. Instead of 1 in 20 I think that you'll be looking at nearer 1 in a 100.

With regards to the product mix, the secret to me is flexibility. Guaranteed that your product mix will change beyond belief within the first four weeks. Just keep an open mind and prpare to adapt.

Again, good luck to you.

Mister B

 

[papverpoppies]

Thanks Poppy for your previous posts. Very useful info. I have made enquiries to AGE and await a response from them.

I have 2 routes in mind, one route to be done Mon, Wed & Fri. and the other Tue & Thurs. I also intend, if all goes reasonably well to run a seperate delivery service for people that want stuff I either don't stock or have run out of. I'm in touch with a few local farmers who have expressed interest in selling there fruit, veg, meat, eggs etc. via a mobile shop, a few of which are happy for sale or return, all looks quite promising. Also there is a couple of log sellers... if you know what i mean (logs for log-burners) who would like me to take orders on there behalf as well as a coal merchant who will bag up 25kg & 50kg bags of coal & coke for me to deliver on a seperate delivery service.

I don't expect to become a millionaire from this, all I want is the flexibility to run a small concern that will pay me a little more than what I currently get as a single parent. I've found it very difficult making ends meet since I split with my wife 2 yrs ago and as I have young kids to look after its very hard finding work that will give me the time I need to look after them.

If i'm self employed I can work around my kids schooling and be there for them without some spotty hitler youth type threatening me with the sack cos my kids have chicken pox or something.

As a female living on her own in a rural area, I think that you are on the right tracks, I really do.

If, you can gain the trust of the people, and that is worth a lot, and are reliable then all of the above sounds good.

Word spreads, if my neighbour gets someone who is trustyworthy and is good at the odd DIY job we pass the message, and so with what you are offering.

My friend is North Yorkshire is a home help, (do not think they are called that anymore)...but she is always telling me about how some of her clients run out of the essentials (and their families are always too busy to help them)!!

If you can stand the thought, contact any local womens institutes, they will spread the word, you might get invited along to do a talk!

Lots of Luck

Poppy xx

 

[friedfrog]

My friend is North Yorkshire is a home help, (do not think they are called that anymore)...but she is always telling me about how some of her clients run out of the essentials (and their families are always too busy to help them)!!

If you can stand the thought, contact any local womens institutes, they will spread the word, you might get invited along to do a talk!

Lots of Luck

Poppy xx

I'm in North Yorkshire too. My neighbour is a member (if thats the right phrase) of the W.I. I could see myself doing a talk to the ladies, exchange jam recipes etc... lol. Seriously tho Poppy, you have some good ideas with regard to AGE and W.I. they're things I would have never thought of. I see a lot of old ladies around here who have to do a 30 mile round trip to the nearest town on the "post bus" just to get a few bits and bobs. the post bus is tiny and they're not guaranteed to get back home again due to it being full. And a lot of them can't carry a great deal of shopping when they do go. I will have to find the proportion of elderly people on my route and target them strongly.
Thanks again.

 

[familydayout]

Good idea, get on ebay and buy yourself an old van to start with. Then if things take off you can upgrade. I doubt you need any licence to knock on doors, but you could just stand outside the grocery store and ask people!

 

[friedfrog]

Well good luck to you, I think that it's a great idea.

Like others have said, I think that your conversion rates are way too optimistic. Instead of 1 in 20 I think that you'll be looking at nearer 1 in a 100.

With regards to the product mix, the secret to me is flexibility. Guaranteed that your product mix will change beyond belief within the first four weeks. Just keep an open mind and prpare to adapt.

Again, good luck to you.

Mister B

Flexibility is I think where I'll be strongest. If research shows a need/desire for a mobile shop. I intend to stock all the fairly odvious stuff. Bread, milk, tea, coffee, tinned and packet stuff, ciggarettes etc.etc. But would also have some sort of on van ordering system, as well as a web-site and perhaps a phone order line too. Been in touch with the wholesaler and they assure me that they can make deliveries to me within 24hrs of ordering.
Getting a grip on the uptake of perishables will I think be the trikiest thing to start with. I don't want to let down people who want bread for instance, but then again I don't want to be throwing away masses of bread either.

 

[Pap_sak]

Hello everyone.

This is my first post. I live rurally in a part of the country where there are 55,000 people in a 20 mile radius of me most of whom are 3 miles or more away from a local grocery shop. The public transport links are virtually non-exsistent and I feel that there would be a good market for a mobile shop, selling everyday items such as bread, milk, fruit/veg tobacco etc. etc.

A couple of questions i'd like to pose.
1; I would like to canvass local opinion as to the potential for a mobile shop. Do I need to register with data protection or similar to go knocking on doors for opinions? If so, how/where.

2; If I can determine a need for a mobile shop, how best would I go about forecasting profit margins?

3; would I be better off going to "cash & carry" myself or would a "cash & Carry" make regular, possibly quite small volume deliveries to me in a cost effective way?

4; What licenses would I be likely to need and where would I obtain them?

5; Would insurance differ much from a vehicle which people "walk on to" from a vehicle where the customer stands "outside"?

6; And finally, well for now anyway. does anyone know of a place to look either for a ready converted van for the purpose. Or a place that can convert a van for that purpose?

All the best,
Anthony.

IMO you wasting your time. You might get a few sales from bread and milk, but the "weekly" shop will still be done at the grocers, unless you are planning to match:

a) Price
b) quality
c) variety

The bread and milk sales would hardly account for petrol, never mind your time.

just my opinion

 

[papverpoppies]

IMO you wasting your time. You might get a few sales from bread and milk, but the "weekly" shop will still be done at the grocers, unless you are planning to match:

a) Price
b) quality
c) variety

The bread and milk sales would hardly account for petrol, never mind your time.

just my opinion

I think that people do want some foods delivered.

Look at what Somerfields offer, (who are not the cheapest store by a long way) YOU do you own shopping, and then get them to deliver it. Beats me why people want this, but they do.

Tesco, Asda, Sainsburys all deliver, sure you shop yourself online, but its the delivery people want.

So long as the OP, can offer what people most want on a day to day basis, at a good price, then I think they will do well.

I am not sure if you live locally or not poster, but for many rural people who do not have a shop on their doorstep, or perhaps transport then these services are a lifeline.

Poppy xx

 

[Pap_sak]

I think that people do want some foods delivered.

Look at what Somerfields offer, (who are not the cheapest store by a long way) YOU do you own shopping, and then get them to deliver it. Beats me why people want this, but they do.

Tesco, Asda, Sainsburys all deliver, sure you shop yourself online, but its the delivery people want.

So long as the OP, can offer what people most want on a day to day basis, at a good price, then I think they will do well.

I am not sure if you live locally or not poster, but for many rural people who do not have a shop on their doorstep, or perhaps transport then these services are a lifeline.

Poppy xx

From what I understood, from the OP, all the goods would be in the van and then he would sell these on in villages. Which is a huge difference to shopping on line and then having the goods delivered, and would be his main competition. Just how much variety can you get in a van?

If I misunderstood the Op, my apologies.

 

[Ernest Andy]

Perhaps it would be better to offer a regular delivery service too, so you know who ordered what in advance, ie. every week you take mrs Jones her bread etc. You could even have some kind of paid membership with added benefits (such as certain products at cost price)

Then after you have done the deliveries in a place you could wait for half an hour or so for anyone else who wants to use the "shop"

After all, you are going around the villages anyway right?

 

[Hayles]

Have you considered offering something different to the supermarkets - such as selling only local fruit and veg, organic fruit and veg, local eggs, etc. etc? Could be a USP?

Just something else to consider when you choose your research questions.