The loss caused by high rent is obvious. If there are not enough franchisees to maintain a reasonable number of franchisees, it is impossible to fully satisfy the profit of products simply by relying on the flow of their own stores.
First, the substitutability of products makes it impossible to give a higher price. The basic idea of opening a shop and doing business is to make money. At the same time, the price is high but the product cost is low. This is what every business wants to happen in its own store.
But this kind of thing that happens in one's own shop may not always happen at a reasonable time, because if the product is easy to be copied, it will not raise the price and lead to the inability to sell.
Of course, the product itself also needs enough attention, which requires a good store to make the product profitable.
However, if the location of the store is better, the rent will be too high, and many stores will appear in crowded places, but the reason for not opening for a long time is that the rent is too expensive.
At present, physical stores rely on low rent and large passenger flow to do business, and fried yogurt can only be cooked by one person at the same time.
Unlike spicy powder and other products, you can make several in one go with a pot. Let's join in the fun, but the shopkeeper makes money from it.
Second, the high cost of rent is the pain of every physical store. 1. The profit of opening a store comes from cost control.
2. People flow is only a secondary factor.
3. Passenger flow is very important.
The most important thing to open a shop is to have enough passengers, but the products are very easy to make, which leads to the proliferation of mala Tang and other products in the market, but the well-made products are really irreplaceable. Of course, other high-quality products can only appear in roadside stalls and other ways because they are prevented from losing money after being copied.
Third, any product has substitutability. You can make money from him, so can others. This is the way of doing business. It is not shameful for everyone to make money for themselves by inspiring each other. What matters is who can make money from this.
The competition in the market comes from the same products and different services, but no one wants those meaningless competitions. You make money and I buy goods. This is the simplest and simplest truth.
Summary: People come to buy products in the hope of getting the best service within a reasonable price range, but getting the best service is often directly related to the price, so many shops can't continue to make profits and turn losses because the competition is too fierce and the cost is too high to maintain.