How Should Clothing Dealers Cope With Soaring Rental Prices?

From the second half of 2010 to the present, price Rising is the most talked about topic among consumers. "One family eats three generations, and buys gold, stocks and funds instead of buying." shop with thriving business " Shops investment further hot. As an important part of commercial real estate, shops are favored by many investors. Facing the craziness rent How should dealers respond?

　 Professional formula calculates store value

As a clothing dealer, how should we cope with the increase in store rent? Our reporter interviewed Guo Min, the sponsor of brand management institution to help dealers find shop, find people and find brands as the service targets. He pointed out that when rents rise, some key indicators should be paid special attention to when distributors look for stores.

First, the high and low rent of shops is directly related to the level of customers and customers. The location of customers and passengers must be consistent with the target customers of the brand. Second, dealers should understand that price is not a problem, not to abandon market research because of price. At the beginning of our shop search, we need to conduct a business survey of the competitors in half a kilometre and using the forms we developed. We will get accurate data from the area, location, passenger flow to sales volume and goods. How should we calculate it?

First of all, we should pay attention to several basic concepts: the first is the passenger flow: the number of customers passing the shop doorway per unit time; the second is the rate of entering shops: the number of customers entering the shop and the proportion of customers passing through the doorway of the shop; the third is the transaction rate: the proportion of the number of customers in the store to the number of customers in the store; the fourth is the customer price: the amount of goods that an average customer buys at a time.

When negotiating with a shop, the dealer must first have more than 7 days to check the passenger flow rate and the rate of entering the shop, then calculate the number of people entering the shop according to the formula (passenger flow x enter rate = the number of people entering the shop). The number of people entering the shop is x turnover rate (average value) = the number of people who deal. The turnover rate means that the staff are looking at the customer's handbag, and finally calculating the consumption amount of each customer. Using this information, we can calculate the average value of a customer's transaction.

If there are no such indicators and figures as the number of customers, the rate of entering shops and the turnover rate, it will be a game of gambling. But if you have professional skills, the rent will be rented again by calculating formula.

　 Brand alliances increase bargaining chips

As a brand, you should know what your core competitiveness is. "Thousand stores help" can be a group of investors or blind rental shops but not good business customers trust funds or shops. Guo Min believes that the combination of brands can create a high growth rate of the market.

"Thousand stores help" combine a number of clothing brands to find shops, and there is not only a life to death competition among peers. Instead, they can join forces to create a commercial street. Only by negotiating together and increasing bargaining chips can the initiative be transferred to the favorable side.

Facing the unfavorable situation of "Crazy" shops, we must calm down and find the procedures and methods to solve the problems, so that we can achieve the desired results.