Two franchises under one wing. Franchisees from Kirovsk about their business experience

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Two franchises under one wing. Franchisees from Kirovsk about their business experience

Mikhail Rodionov franchisee “220 Volts” in the city of Kirovsk. In the first two weeks, it reached operational payback and earned its first million in the high season. In parallel with the retail of power tools, Mikhail is developing a business under the Euro Auto franchise. Read about the features of doing business in the Leningrad region in an interview with a partner!

Have you had any business experience prior to buying a franchise? If so, which one?

I have a valid Euro Auto franchise. Before that, he sold furniture. The franchising scheme has been familiar to me for several years, I understand the general principles. Although every business has its pitfalls.

Why did you choose the scope of the power tool?

The property was a two-story building. On the ground floor there was a car service. We thought what to do with the second, and realized that the best option is a power tool. A similar topic, plus everything in Kirovsk there was no 220 Volt store .

Why did you decide to purchase a franchise of 220? Have other franchises been considered?

Because I used the “220 Volts” many times before, I bought some kind of power tool. Honestly, I did not consider other franchises. I heard about the existence of the franchises “All Instruments”, “Northern Arrows” and everyone else, but the soul lay at 220. I relied on a famous brand, but how could it be otherwise.

What sources did they draw information from?

I mainly searched for information on the Internet, read official and unofficial sources, and reviews about the “220 Volt”.

What difficulties did you encounter when starting up the store?

We have been working for six months, starting in May, and some serious difficulties have not yet happened. We were lucky, we felt good support from the opening and escort manager. I didn’t like only that we had to tinker, invent a podium, buy pallets and artificial turf. It would be easier to buy a turnkey solution, but no.  

How has the product matrix changed from launch to today?

To the end, the matrix has not changed. Some goods are dead weight, and some diverge like hot cakes. We have to adapt to the needs of the audience.

In our city, seasonality is of great importance. In the summer, in Kirovsk, the population is 150,000, and in winter it is reduced to 25,000. Because the summer season ends, and everyone returns to the big city. In spring and summer, gardening equipment and hand tools are in great demand. Now there is some decline. The garden was gone, the sale of power tools remained at the same level, and they did not start buying winter goods yet. Therefore, we want to launch a sales campaign for generators and snow blowers .

And what about the location?

The fact is that we are not within walking distance, far from pedestrian traffic. If a person came to the store, then he did it purposefully. He will surely buy something. In order to somehow draw attention to the store, we developed an active advertising campaign: leaflets, billboards, publications on social networks. We started to develop the channel of cashless sales.

What results have you achieved in six months? What would you like to improve?

We started the summer season perfectly. Reached a very good momentum. They started operating payback in the first month, not even a month, but in the first 2 weeks after launch. However, the fall months are not so rosy. According to the results of October, we were in the red. We decided not to sit idly by and increased advertising activity. Special offers were developed: generator and snow blower, generator and automation unit with significant discounts.

What is your best result this season?

1 370 000 rubles, but as soon as September came, it became sad. Now we need to minimize costs to survive the off-season. I want to go through a full cycle to understand what success is associated with and whether it can be repeated. Perhaps this is the location and all .

Tell us a little about the relationship with the staff!

Initially, there were great difficulties with the staff, constantly lacking hands. People came / went. Now we have recruited a permanent staff that works well, does not drink, does not skip, etc. Two out of three sellers have already passed certification. We have not fully decided on the motivation system. We experiment every month. But we do not leave employees without bonuses.

Are you planning to open new stores?

There were thoughts at the expense of Shushar, as well as the area of ​​the new building Kudrovo (Leningrad region). It’s now much easier for us to try something new. For example, we opened somewhere, worked, it didn’t work, we gathered everything, brought it to ourselves. There is where to implement. The second store is easier to open than the first.

Who would you recommend the 220 Volt franchise to?

I believe that special training is not necessary. Before that, I was not connected with the instrument at all, but I figured it out with the help of professional advice. A recipe for success is a good location, it must first be properly evaluated. And the brand will take care of the rest. 

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