Business idea – Doorstep Wholesale

Nowadays, all shopping materials in retail stores come on a call. There are many wholesalers who supply bulk material on the doorstep of retailers. These wholesaler purchases material from distributor or C & F and sells it to the retailers on call. A large number of persons in the city is employed by this method. This gives easiness to retail shop keepers and employment or turnover to the small wholesalers.
But there is another market which is still not looked upon. That is a wholesale home delivery system. It is seen that a large middle class section is emerging in India and this class have major consumption in FMCG, food products, etc. Normally each family of 5 persons purchases 3000 to 6000 Rs. products per month from small wholesalers. They go twice and thrice in a month and purchase as per their requirement. Normally orders are in repetitive mature. Most of them are packaged and specific brand products. This is the requirement of all the middle and upper class families.
There are some departmental stores which provide home delivery. But it is not organized and popular. Because initially departmental store starts their scheme to increase sales and customers. But after some time they deliver very poor services to their customers.
So there is need for doorstep wholesalers who can take order on call and give rates and next day they deliver the order at home to their customers. In 10,000 to 20,000 families area one wholesaler can easily serve if he gives good services, good quality & material and reasonable rates to their customers. In ten thousand families area if he captures 10% of market sales. Then its monthly turnover will be.
Monthly turn over in = 10,000 x 10% x 4000
10,000 families = 40, 00,000 Rs.
In that, if we take wholesaler profit as a 5% profit in which 2% is his real profit while 3% he should expense in packaging, transportation, storage, call center and in incentives.
So if we take 2% profit then
a wholes can earn monthly = 40,00,000×2%
= 80,000 Rs.
Which give annual income of about 10 lakh. This he can get with one year of hard work.
But the question arises how much he needs to invest in his business initially.
For his inventory 2 days = 10,00,000 Rs.
(Rest he can get trade credit easily)
Three month store rent = 1,50,000 Rs.
Three month salary and other expenses = 3,00,000 Rs.
Furniture & Machinery = 5,00,000 Rs.
Miscellaneous = 50,000 Rs.
……………..
20,00,000 Rs.
……………..
So for the income of 10 Lakh, you should invest about 20 lakh in this business.
If you give good quality products, good services and reasonable rates chances of success are 100%. You can start initially at lower turnover goals like 10 lakh Rs. Per month and increase as per your income grows. For 10 lakh Rs. the turnover you need 5 lakh Rs. as an initial investment. But here I should declare that you should never supply loose items. Take orders of packaged and branded items only. So that chances of bad quality is a minimum.
But for marketing your cell number, your delivery policy should be properly communicated to your prospective customers. For economic balance, order quantity should not be less than Rs. 500 order so that transporting cost is balanced. Use next day delivery system only, so that delivery van can take a single round in a day.