There are hundreds and hundreds of franchises you could choose to invest in. They come in all shapes and sizes, with a variety of products and services to sell. This leaves many prospective owners wondering what the best strategy is for choosing the right franchise.
It’s important to start this decision-making process by considering the type of product or service you want to provide. You may think that selling low-priced items, like pizzas or sandwiches, is ideal. After all, they always seem to be in demand, and you’re likely to sell a lot a lot of them throughout the day.
But, lower-priced merchandise doesn’t always work in your favor. If you’re looking for an avenue with the best potential for franchise success, consider the following benefits of selling high-ticket items to consumers.
Volume Versus Value
If, for example, you’re selling sandwiches at a fast food franchise, you have to push out a lot of products before you reach $1,000. If, on the other hand, you’re selling high-ticket items or services, you only need to make one or two sales in order to accumulate a hefty profit.
In seeking out a franchise ownership opportunity, think carefully about the value of the products or services you’ll need to sell. Some prospective business owners are deterred by products with a high price tag because they assume that consumers are going to turn away from making such a large investment. That’s not necessarily the case if you do your homework to choose the right franchise in the right market.
There’s plenty of demand for various types of valuable products that don’t require you to sell at a great volume just to keep the lights turned on in your business.
Nixing The Cash Transactions
When you buy a franchise, dealing with cash on a daily basis can often become a headache. You’ve got to:
- Count it daily.
- Ensure against counterfeit bills.
- Store it safely and prevent theft.
All of these are real challenges you face when you’re working with a high volume of cash.
High-ticket items, though, are most often paid for with a credit or debit card. Think about the last high-priced purchase you made – perhaps new furniture or an electronic device. You probably didn’t pay for it in cash, as carrying around large amounts of bills is inconvenient and often unsafe.
Fortunately, when you’re running a franchise that deals with high-priced items, you alleviate much of the stress associated with dealing in cash.
Higher Profit For The Same Amount Of Work
Franchise owners put in long hours at the beginning. That’s a fact. You’re required to fill many roles – from manager to accountant to stock person. Regardless of the type of product or service you’re offering, you’re likely to spend a lot of time at your store.
In essence, you’re putting in the same number of hours whether you’re selling high-ticket or low-priced items. So, you might as well turn a higher profit. When your merchandise consists of higher-priced items, you’re apt to bring in more money for the same amount of invested time – giving you the edge in developing a successful franchise.
More Attractive Competitive Landscape
The truth is when you sell low-ticket products, you face a lot of competition. Take, for example, a franchise that sells automotive tools or parts. Yes, a number people still go to the store to purchase these items, but many are turning to online stores for their products, seeking the lowest possible prices.
If your customers are ones in search of high-ticket items, you’re at an advantage. Many customers won’t make a high-priced purchase without seeing the product in person first. It’s a big investment, and they want to ensure they’re making the best selection. This gets them in your store – with a better chance of buying from you.
At the end of the day, different types of franchises are right for different types of owners. It’s essential to choose the franchise that’s right for your goals and your future. In weighing your options, be sure to keep the benefits of selling high-ticket items in mind.
Want to learn about an opportune option for selling high-priced items in a lucrative market? Request more franchise information from Relax The Back.