Make a profit

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Being a sole trader allows the Mr Sandhu to make his own decisions, such as opening and closing times. This means that they can sell alcohol in the afternoon when there is a higher demand, which helps them make a larger profit. As Sandhu Wines is located next door to a pub, the pub owners and visitors will see that there is a shop next door and may decide to pick up some alcohol on the way home. This will help increase sales, therefore profit.

They sell a wide range of products; sweets, alcohol, newspapers, freezer food, etc. This helps them to attract a range of people, from young school children looking for sweets, to newspapers and alcohol to attract older people. Provide a highly competitive service. Because they are a sole trader they will be running the business seven days a week so they will form a bond with regular customers, meaning they are more likely to come back again. This will result in an increase in customer satisfaction

Because they are located close to suppliers, they can spend less money transporting products, meaning they can keep products at a minimum price, making them more competitive towards Londis, a shop with very competitive prices situated close to Sandhu Wines. Because Sandhu Wines is the only off licence on the road, they will be the main shop that locals will visit if they wish to purchase alcohol. This will help to increase sales along with profit.

In the future, to expand as a business If Mr Sandhu did decide to expand, they could perhaps become part of a franchising chain such as Costcutters, because Sandhu Wines is doing well at the moment so it is likely that they will gain permission to sell other company’s products. As Sandhu Wines is located in a busy place with many residential areas, there is a large demand for larger shops such as supermarkets. If they expand it is likely that they will make large sales as prices normally decrease, as the shop becomes bigger and better known.

They could continue selling alcohol, ensuring that their shop will always be in demand. Provide a good, friendly service, whereby customers are satisfied. As Mr Sandhu runs the shop, he will be entitled to use any technique he feels will make sure that customers are satisfied Because Sandhu Wines is located in an area easily accessed for a large number of people customers are more likely to leave the store feeling satisfied. Mr Sandhu finds his own suppliers; if he feels his current ones are not offering value for money he can look around to find cheaper suppliers. This means than they can then reduce prices of products, to satisfy customers.

Attract customers with cheap products and special offers. Being a sole trader, Mr. Sandhu has the right to provide customers with special offers of his choice, which may help him to make his shop become more competitive. Because they are situated on a busy road, whilst people are walking or driving in cars, they will see Sandhu Wines and the special offers which they have put up on the windows, this may encourage them to come in and purchase something.

Because Mr. Sandhu personally transports goods from the suppliers to the shop, he is able to save money, as it is cheaper to collect goods yourself rather than having them delivered. This means he can sell products cheaper than perhaps other shops. Communicate with many customers on a one to one basis. Because Mr. Sandhu runs Sandhu Wines seven days a week he will know many customers well, so he can address and communicate with them on a one to one basis.

Sandhu Wines is located close to flats and other residential areas, the same customers are likely to visit the shop more than once, so they can communicate with them regularly and they may become friends. As Mr Sandhu works and lives at the same address he may already know some customers which is good because they are then more likely to visit the shop regularly. It is normally Mr Sandhu who works on the shop floor providing customer service. This means that customers will eventually familiarize with him and therefore he will have an advantage over other shops located in the area- making his shop more competitive.

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