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/biz/ - Business & Finance

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26982282 No.26982282 [Reply] [Original]

oldfag here who made a couple million on ETH

I want to buy an actual real business. Should I buy a grocery store? The old guy who runs the local mom and pop place told me today he’s going to sell the business in a year and retire

Is this a terrible idea? The place needs updating but it has a decently solid customer base despite Walmart existing 10 miles away

I didn’t ask him for a specific price but he told me he’d take 400k in a heartbeat

>> No.26982487

Buy a gas station

>> No.26982522

If you want to buy a 60 hour job, then it's A+

>> No.26982563

>>26982282
yeah

>> No.26982565

Sounds fun

>> No.26982572 [DELETED] 

>>26982282
help a poorfag and send me 1 ETH:

0xAbc18A2429f2B2DCc19e18e64b630F691CB820e4

>> No.26982575

>>26982522
Are the hours that bad? What businesses are more hands off?

>> No.26982581

it's a low margin/high volume business
lot of work for not a lot of money

>> No.26982607

pls, delete all these niggers from topic
they still try to win with shittokens and shill everywhere their referral links
I am not a tard to take part in this shit
Why should I do it if I have base on my portfolio and last month there were only pos rebases

>> No.26982613

Why not just buy a franchise ?

>> No.26982667
File: 10 KB, 299x168, fruiterer.jpg [View same] [iqdb] [saucenao] [google]
26982667

>>26982282
its a lot of work anon esp if there's fresh stock. What do you know about vegetables?

>> No.26982675

>>26982282
jesus fucking christ ask him for his financials. every document. see what the return on investment is. you owe everyone in this thread a share in your shitty grocery store if we have to give you basic business advice

>> No.26982697

>>26982282
buy BAT and you can make more

>> No.26982698

>>26982282
I can tell you as someone who did this with random stock market gains - make sure you fucking run it yourself or you will go broke.

>> No.26982757

>>26982282
Providing any kind of value to society is punished these day
I'd recommend against it

>> No.26982771

>>26982282
>I want to buy an actual real business.
Why?
I hear the profit margins for grocery stores are really tight. It could be fun though. And you're actually doing something productive and giving back to the real world. Can even plug ETH and post /biz/ memes as posters if you want.

>> No.26982813

No, carwashes and laundromats.

Hire some low wagies to mop and clean the place. Collect your untaxable cash every 3 days. I plan on doing this and making my stay at home wife do it all.

>> No.26982814

>>26982698
You bought a grocery store specifically or you bought a business?

If the former, can you give me grocery store advice?

>> No.26982878

>>26982698
What happened?

>> No.26982950

>>26982667
I don’t know much about vegetables

>> No.26982967

>>26982813
Based, don't forget parking lots

>> No.26983139

>>26982950
If you don’t understand grocery do not get into grocery you fucking dunce.

>> No.26983159

>>26982813
Stay at home wives are the best employees

>> No.26983243

>>26983139
I know stuff about dry grocery and meat. I don’t know much about produce.

>> No.26983316

>>26982282
If you want something to do. I think your heart needs to be in it if you want it to work out. It's not a hands off money maker unless you have acquired something with multiple chains. You'll be working hard.

>> No.26983352

>>26983139
I would argue otherwise.
If you don't understand grocery don't try to save a failing business , but if all previous records report it was going well up until x events (corona, idk), then it can be a worthwhile investment to learn about.
the fact that OP's offer is from a guy who's selling the place for 400k is worrying, desu.

>> No.26983435

>>26982575
>What businesses are more hands off?
Finance, banking, real-estate, or anything else jewish.

>> No.26983444

>>26983243
Good thing Produce accounts for an average of 20-25% of a grocer’s earnings and is the most highly-perishable department and also market analysis suggests people determine where to buy their groceries based on the produce department

>> No.26983473

Holy shit OP, dont do this

>> No.26983486

>>26983352
Meh maybe I will just continue being a NEET. Maybe I’ll look into the car wash thing. It just seemed like an ok business.

>> No.26983581

>>26983444
Well then I won’t buy it then. It sounds like too many departments to learn. You have to learn bakery, produce, dry foods, and meat. I’ll just keep being a neet for the time being

>> No.26983642

>>26982282
>Is this a terrible idea?
Yes, buy a farm and retire.

>> No.26983748

>>26982282
maybe if you like hard work and low profits

>> No.26983758

>>26982282
are you going to accept btc, eth, unn, and ltc as pay?

>> No.26983821

>>26983444
That said I can’t see how it would be that hard to learn about vegetables.

Literally just “meet X percentage gross margin” and “X vegetable spoils after X days so pull it before then”

>> No.26983838

>>26982282
you and your family will always have a ready supply of slightly stale food that you can declare as loss at tax time

>> No.26983869

>>26983758
Kek this

>> No.26983924

>>26982607
I think youre in the wrong thread retard

>> No.26983960

>>26983821
In the abstract, okay, until the time comes to make decisions on what to supply, what time of year to supply it, what price point to set it at, where to source it from, when to accept/reject it on quality, etc. this is an independent grocer, not a chain, you don’t have warehouse buyers doing this shit for you.

>> No.26984022

>>26983758
If I owned a grocery store I would accept the following as payment:

Bitcoin Cash
LTC
DOGE
ETH

maybe Bitcoin but the fees are shit

>> No.26984091

>>26983960
Do you have experience in the produce field? You sound like it. Where can I learn

>> No.26984206
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26984206

Could you put bathrooms and sauna, hide cameras in the women's bathroom and women's sauna and only hire big ass and big tit girls?

Then ask get them used to see you naked, don't engage to them, but always talk on the phone as if you are passive-aggressively talking to your "partners". And always compliment your titty employees on their work, and ass employees on their walking speed.

Make a "policy" that one employee has to stay until 23:00 when the truck comes(it could come early, so you don't know what time they will actually be) .

The rest of females have to leave at 21:00 at most. You will pay them extra, obviously.
Then, talk about life of some shit like that. And offer them to be your girlfriend /wife.
Invite them to wine, show her your pool, etc.

Then you tell them that you are polyamorous or some new age crap.
Then you could run your retail harem.

The cameras are so you could share videos with us.

>> No.26984348

>>26982282
personally id set up a bar (not in covid now, tho) but simply because id love to host small moody bar, for fun, not huge gains.

>> No.26984396

>>26982282
in door fish farming; the way of the future

>> No.26984404

>>26984091
I came up through grocery industry. I ran a grocery store with an ebitda of +$1.2m annual (it was impressive for the chain, small potatoes in the industry as a whole if you’re with a big name like Whole Foods but we were a small player), transitioned into Produce dept training and now hire and train produce dept leadership in the region. Looking to make the move to the corporate buyer role eventually so I’m learning the supply role.

>> No.26984615

>>26984404
That’s cool. I don’t think I’ll buy it but theoretically if I were, what resource could I study to learn the business model in depth? It sounds like just produce is a bitch. The store I’m talking about doesn’t have a humongous produce section the whole place is probably 10,000 sqft and my guess is the revenues are probably 100k/week

>> No.26984739

>>26982607
because boomers who refuse to accept that investing is actually gambling too will never get the big profits. who the fuck wants to wait a decade for pocket change when you could make millions in few days...

>> No.26985072

>>26984615
I mean produce is easy enough to learn in theory as a category, the issue is you have to know (a) food trends (both nationally and in your area) and (b) watch your competitors’ pricing.

The bigger issue is it isn’t turn-key unless you REALLY trust your produce team, because quality is the first thing people tend to let go. Restaurants have this issue too, and it’s why they make shitty turnkeys; once the financial squeeze comes down (on labor or shrink or whatever else) the first thing that stops is quality control, and in a month you can evaporate years’ worth of trust among your regulars. It’s extremely difficult to recover from that. If you don’t understand produce, you will likely put your team in a position where they feel obliged to hit financial targets and the only or easiest way in the short term is to allow quality to slip. Meat can have this problem too but presumably when you make your unannounced visits to terrorize the store you’ll recognize shortcut-day-old ground beef but you wouldn’t know overripe bananas.

>> No.26985093

>>26983960
He can just keep up the current owner's strategy

>> No.26985259

>>26982282
grocery stores are HARD. inventory that rots, refrigeration, freezers, thousands of items and SKUs, very low margins, amazon and walmart as competition.

>> No.26985286

>>26985072
Ok but if I wanted to learn all of that shit what book can I buy
If I were to buy it I would change all the produce to local shit to stand out from Walmart

>> No.26985357

>>26983486
you would have to work hard to run the business and chances of someone else buying it if you get tired are non existent

>> No.26985411

>>26982282
NEVER, I repeat NEVER buy an already existing business, you are payng more for a business that is gonna be anyway a new business.
You better open a new one.

>> No.26985430

>>26985357
Why the fuck did people start grocery stores is the margins are so shit

Did they used to be easy money and now they aren’t?

>> No.26985676

>>26982282
buy vardano and stake it and you can live off the $100k per year staking rewards with zero effort. when vardano is at $1 you'll be earning 300k+ per year. then get some side hobbies and enjoy yourself. it it really is that simple

>> No.26985703

>>26985286
IDK man I learned by doing. If there are books out there I didn’t read them. Also watch your step because Wal Mart has great produce quality and actually surprisingly good variety too. People just assume Wal Mart does it shitty but they don’t. Wal Mart’s issue is service, their quality in my experience across the board is quite good.

>> No.26985810

>>26982282
If you have to ask, the answer is likely no
If you really want a business start something small yourself and build it up
Though it feels like all small businesses are going to be in absolute agony for the next few years

>> No.26985815

lol no everything will be bought online

>> No.26985816

>>26985703
I know their produce is good. The meat is actually shit tho

If I were to buy a grocery I’d focus on meat and try and buy all prepackaged produce

>> No.26985832

>>26985430
probably started a long time ago when the world was different.. back when there was no globalization and maybe that big chain supermarket wasnt there either. all this fancy technology changed everything

>> No.26985837

>>26982282
Buy a CNC farm. Get 5axis machines and literally print money with turbo impellers.

>> No.26986024

>>26985286
Also
>local shit
Suicidal meme. It’s not that local produce is bad, it’s that the most popular produce items in every store come from places that are not 50/100/etc miles from where you are. You gonna sell local bananas? Unless you’re buying a grocery store in Honduras you ain’t. Also avocados, you live in a big avocado growing region? Lot of russet potato farms near you? I bet you’re also right on top of a huge strawberry field that’s also right next door to a cilantro farm

You can’t go all-in on local without crazy restrictions. Restaurants can do local and seasonal by just going fuck-you to the menu and not serving asparagus this month, that shit won’t fly in a grocer. Local is supplemental, it’s not a business strategy to replace primary grower sourcing (or, depending on how this guy had the business set up, distributor sourcing from a third party warehouse)

>> No.26986151

>>26982282
lmao @ competing with walmart
awful idea

>> No.26986217

>>26986024
You probably could if you market it as a 'local produce only' you'd get some trendies and hippie customers.

>> No.26986265

>>26985816
>prepackaged produce
Suicidal. For one thing it makes quality control a bitch. For another it doesn’t look fresh and produce has to look fresh. The real money is getting a good value-added program together (cut up old pineapples to sell as chunks), all the big boys do this in-house now (even wal mart) but it’s a HUGE quality question-mark and if you get good people in and maybe some good recipes for shit like seasoned snap pea medley or something, you know, those kind of differentiators (that aren’t “watermelon in a cup”) it basically prints margin out of thin air since it’s mostly recapturing waste.

>> No.26986353

>>26986217
could work if theres enough of them but the average customer will only look at the price and go somewhere else if your product costs several dollars more than the competitors

>> No.26986450

>>26986217
The point is “local produce only” LITERALLY means “we only sell apples and potatoes” or whatever. American farmland is not crazy diverse like that. You can’t locally source a typical American’s weekly produce buy almost anywhere in the country and I’m not even talking about specialty shit. I’m talking basic staple goods.

>> No.26986594

>>26986265
Ok well this shit sounds unnecessarily complex. I guess I just won’t try and compete with Walmart and kms trying to think of a business to start

>> No.26986620

>>26986353
Customers typically don’t price shop groceries, because groceries are cheap. If every week they walk out paying like 5x what they expected sure, but nobody blinks an eye at the 20% markup if it means they don’t have to drive 10 extra minutes, or you always have what they want in-stock, or the checkout girl always makes them laugh.

It’s not a washing machine, nobody feels like a sucker for paying an additional $6.50

>> No.26986685

>>26986450
That said if you were the local mom and pop grocery, how would you run the produce to compete with the big boys? What’s the small business game plan here theoretically? Now I’m curious

>> No.26986772

>>26982282
Listen to your heart man

>> No.26986837

>>26986620
They don’t price shop? Didn’t you just say you can’t compete because Walmart’s produce is cheaper?

Or are you saying as long as it’s fresh, they’ll pay?

>> No.26987097

>>26986620
interesting.. personally i do care a bit about prices. closest store here has prices that are over 1€ higher than the store from a different company that takes just few minutes more to get to. it may sound like a small thing but that shit adds up if you arent rich enough to be able to use money as toilet paper

>> No.26987107

>>26986685
Quality control (this is a tough game but you have to be great at it), specialty variety (also a tough game since the big boys are getting better by the day), value added (this is a MONSTER differentiator, value added is your life blood).

But service above all. If people enjoy shopping with you, they will. Wal Mart may have what I’m looking for but I hate going in there. If I walk into a grocery store and I ask someone to pick a cantaloupe for me, and the first thing they do is to respond “well, which one I pick depends on when you’re gonna eat it. Is this for your lunch today or for a dessert this weekend?” I’m coming back to that place. Wal Mart is full of dead-eyed cold-hearted robot drones that don’t fucking care because the life has been beaten out of them by the bureaucratic machine. You are running the opposite. Capitalize on it and make your environment a worthwhile one and people will pay a fucking random for your product.

>> No.26987176

>>26987107
Thank you. Can you expand on what you mean by value added

>> No.26987440

>>26986837
I guess what I’m saying is “the kind of people who price shop are already going to Wal Mart or Costco and you lost before you started”. Even if you sell for cheaper than them, you don’t have that identity, that brand image. Trying to differentiate yourself on price is foolishness. Look at places like Aldi and Lidl that came stateside and struggled because they tried to play the price game (and competently, at that) against parties whose reputation among price shoppers is such that nobody even cared to check them out.

Most people, certainly the regulars sustaining this local grocer, do not shop on price. Some people do, but they are not your people and never will be.

>> No.26987793

> Tiny profit margins
> Requires a lot of upfront investment
> Requires a bunch of employees
> Entirely dependent on location and nearby competition
> Requires a fuck tonne of time to run decently

Why the fuck would you pick this?

>> No.26987821

>>26987440
its quite risky business if you rely on wealthy boomers. they will die some day and then you might not have enough people who would buy your overpriced products

>> No.26987870

>>26987176
Value added = house labor made products. Prepared foods. In produce, this is everything from watermelon quarters to microwave-ready green bean almondine or teriyaki vegetables. In meat this is stuff like pre-sauced beef kabobs, breaded chicken breasts, etc. house made potato salad, whatever.

This stuff is crucial because one, it sucks up shrink and provides a high-margin exit vector for turning product, and two, even though you and the big boys are both selling the EXACT SAME cauliflower from the EXACT SAME farm and yours costs $.49 more per head, they don’t have your recipe for cilantro-lime cauliflower rice pilaf. Only YOU have that. It’s exclusive. It’s the lowest-cost way of getting private label products into your building. You say you know dry grocery; then you know that private label is arguably your most significant moneymaking category from a margin perspective. Value-added is how you do “private label” in meat and produce.

>> No.26987962

>>26982575
there's no such thing as a hands off business kek

>> No.26988118

>>26987962
but there are some that get very close

>> No.26988555

>>26982282
>>26982581
This. The old man is selling it for CHEAP because he's getting squeezed hard by box stores and it's exhausting him mentally, financially, and physically. He's run that business his whole life and all it will.cost is the equivalent of a nicer house? Looking for a quick sale to expedite retirement.

>> No.26988811

>>26982282
If I had the money...
> State where marijuana is still illegal
> Find a good location
> Set up a vape shop
> Set it up to sell marijuana
> Wait for the inevitable
> Profit like a MF

>> No.26989343

>>26988811
or get caught and raped by feds

>> No.26989405

>>26989343
Right because that's happening all over the country where it's legal.

>> No.26989603

>>26982282
No are you fucking stupid? No one even goes into stores anymore. Good for money laundering and thats it. Buy more eth, LINK.

>> No.26990085

>>26984206
He would also only have to hire manlets to not give the big ass and big tit girls warning signs. Have most of them as cashiers ao they can be stationary and not be able to talk to the big ass and big tit girls

>> No.26990264

FUCK. THAT.

I have worked in a grocery store, its a nightmare.

Why would you want to buy a $60k/year high stress job?

>> No.26990760

Just think if we spent out 600 stimulus on this when we first got it

>> No.26990800

>>26982282
>Should I buy a grocery store?
not unless you want to hire a manager to do the job for you, otherwise you're a self employed wage cuck.

>> No.26991155

>>26982282
Yes its a good business as long as you own the place. Owning it will ensure you survive long periods of slow business though your overall return will be lower. The same is true of restaurants, rented locales tend to close in 6 months while owners are still im business 20 years later.
Just dont hire anyone, do all the work yourself or get a relative to work with you for cash.

>> No.26991644

>>26988555
Its going to have returns much higher than plain real estate. The retail industry currently has 1400 billion dollars in assets while it produces 1200 billion dollars in value added. Not all these 1200 billion are profit, part if that is tax and salaries. But overall it produces 8 times more value per unit of equity than renting real estate, as us typical of all "active" business.

>> No.26991779

>>26982771
Seriously like 2% annual profit on gross revenue tight. Depending where the store is he could easily be doing a few million in sales every year but if its only selling for 400K doesn't sound like it was all that profitable. You'd need to look at the books.

>> No.26991947

>>26986685
Small stores are about convenience, they sell Doritos and chocolate milk and sliced cheese.

>> No.26992100

>>26987962
Landlord

>> No.26992177

>>26990264
Because OP has made it and wants a more interesting toy than a Lambo.

>> No.26992443

>>26987440
>You don’t have that identity, that brand image
To expand upon this anon, your niche is probably the local community - if you make your shop a key part of the local community, by organising events (fundraisers etc) and decorating your shop appropriately for seasons. But that's a lot of time and is pretty much a full time career.

>> No.26992509

Fellas, you should help me. I can’t get why nft is so popular now??? How it works?

Checked twitter yesterday, everyone is talking about Poolz and their new protocol, I can’t even get what is it? Sorry, I am idiot

>> No.26992921

>>26987440
Aldi doesn’t play the price game? They’re literally just save a lot with nicer floors

>> No.26992940

Sounds comfy desu. You add massive value to society by having a real grocery store instead of chain shit. If you differentiate yourself on quality (organic, fresh artisanal shit, service, big range of stuff chains don't carry) I think your margins could be higher. I used to live near a shop like that, they had a great range of fresh spreads (all kind of humus, feta paste variations etc), an in-store butcher, lots of imported sauce bases and shit like that, always very busy. Looked like a real money maker from the outside.

>> No.26993146

>>26992940
Also partner with local producers of everything, alcohol, lemonade, roasted nuts, cheese, whatever you can think of. There's a clientele for this kind of stuff.

>> No.26993220

>>26982282
If you don't have any experience, don't do it, start with something smaller like an ice cream shop or whatever.

>> No.26993238

>>26982282
Real Estate is to way to go bro. Rent money is the best

>> No.26993423

>>26992940
This is I would do if I bought one. I would try to carry as much locally made shit s as possible. The problem is, the place is in a small town full of subhuman trailer trash in the rust belt who are both 1. Too uncultured and 2. Too poor to give ashit

>> No.26993445

>>26992921
Can you even read?

>> No.26993721

>>26982282
What you could do btw is have a tentative agreement to buy it from him but in the meanwhile work for him and have him show you the ropes. You should do this anyway, imagine if you buy that place but don't get the contacts with his suppliers and how he runs it in general, half the value is already gone at that point.

>> No.26993746

>>26993445
I’m saying aldi is extremely successful.

>> No.26993768
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26993768

>>26984206
goddamn /biz/ I want to leave but I would miss posts like this

>> No.26994047

>>26991779
Some stats for the retail industry: (approximated)
Capital:1400 billion
Salaries:650 billion
Expenses (not salaries): 800 billion
Revenue:1700 billion
Profit:280 billion
So 20% return on equity. The actual profit margin (as per expenses) would be 280/1700=16%. Of course if you do the work yourself you also earn the salary, salary+profits=930 billion, 930/1700=54%.

>> No.26994653

>>26982282
Have you ever run a business before?
Dealt with employees?
If the answer to these 2 questions is no, the don't fucking do it.
Go get a hobby.
Try underwater dildo corn hole or something.

>> No.26994663

>>26994047
Source: Bureau of economic analysis. Use tables, input-output tables, private fixed assets by industry tables.

>> No.26994768

Dude how retarded are you? You have enough to just retire and now you want to buy a grocery store? What the fuck? I fucking hate people like you.

>> No.26994907

>>26993238
Retail has 20% return on equity while landlording only 10%. And much higher- like 65% returns if you also do the work but thats technically jusy adding your salary to your profit and only works for small stores.

>> No.26994969

>>26994768
Being neet is boring.

>> No.26995106

>>26994969
depends on the person. it can also be extremely comfy if you arent one of those silly creative maker innovator boomer types who literally cant sit down for a second

>> No.26995219

>>26982282
profit margin for "grocery" goods is like a few percent. money makers for grocery stores are bakery department and maybe meat/seafood. it's a terrible idea to put any money into a small grocery store. a lot of physical work, shit economies of scale, and you're too small to command volume discounts through your suppliers.

t. wasted 5 years working at a grocery store

>> No.26995220
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26995220

my wife works and i watch the kids, but i also have a construction business i have employees who do everything and I make 3-4x what all 3 of them make. Go into construction its a goldmine especially after taxes and stimulus.

>> No.26995260

>>26995106
Neets are not creative, wrong archetype

>> No.26995352

>>26995219
Its actually like 16% on income and 20% year return on equity

>> No.26995462

>>26995219
What business should I start then?

Crypto currency advisor for boomers?

>> No.26995474

>>26995352
you're confusing multiple things in a single sentence so i'm not even sure where to start with your "analysis."

>> No.26995593

>>26982813
I inherited a laundromat, it’s a shitty business. Was much better 20-30 years ago. Most buildings have laundry now.

>> No.26995616
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26995616

>>26995260
both are opposites. the boomer type would commit suicide if he had to switch to the neet lifestyle and the neet would do the same if he had to switch to the boomer lifestyle

>> No.26995737

>>26995462
do you actually want to work for a living or are you just getting bored of being a rich NEET and want to LARP as a businessman?

if it's the latter start some sort of dumbshit labor contracting operation. hire a bunch of middle aged alcoholic tradies to paint houses for you. keep it hands off and act as the manager/customer service rep/salesman. make sure one of the people you hire is smart and can talk to customers, he'll be useful to help land deals, provide accurate price quotes, etc. also pay him 50% more than the other dumbasses so he can be a team leader or manager.

>> No.26995843

>>26995593
>>26995352
vending machine business might be fun for rich NEETs. it'll get you out of the house a few times a week to restock. the biggest challenge will be smooth talking the property/business owners into allowing your machines on the premises.

>> No.26995846

If you want to open retail make sure you sell something Walmart does not sell. I make freestanding fountains out of old materials from my construction jobs and i make a extra 1500 a month. Whatever business you start make sure it can evolve into something else if need be

>> No.26995909

>>26982282
Dude are you kidding me. He wants $400k???? Somethings wrong. That’s extremely cheap. Why would you want a wagie job? You don’t just passively own a grocery store.

I’m guessing you have little to no business experience just by your newbie questions. I would focus on something that’s much more hands off, maybe an online store or a franchise.

>> No.26995956

>>26995737
This is what I do with my construction/ handyman business

>> No.26995965

>>26995474
If i made a mistake you would point it out rather that talking in vagaries.
Retail stores make 280 billions in profits out of 1700 billions in income. Its ridiculous to talk about the specific profit of selling 1 item, since the cost is the cost of running the whole operation and not the cost of buying a can of sardines. Overrall, 280 in profit out of 1700 in sales. The equity involved is 1400 billion so its 20% return on equity.

>> No.26995982

If you live in the US i’d consider a carwash

>> No.26996406

>>26995965
you're quoting "retail industry" as a whole, not grocery in specific. go research industry-specific publications or even here is a good start: https://csimarket.com/Industry/industry_Profitability_Ratios.php?ind=1305 (before you spit back the gross margin from the above link, spend 10 seconds reading about the difference between GROSS margin and NET margin and then think about all of the SG&A expense associated with running a grocery store.)

i'm an accounting/finance professional so if you want to talk specifics, that's fine. i'm not just talking out of my ass here.

>> No.26996579

>>26996406
>>26995965
here is another example from an industry specific source: https://www.fmi.org/our-research/supermarket-facts/grocery-store-chains-net-profit

>> No.26996659

>>26995965
Also for a small store the net payoff may be much higher if the owner does all the work. Its impossible to run a large store without employees, but a small store you absolutely can. On the other hand without economies of scale your suppliers will charge higher prices but also small stores are about convenience and can charge higher prices. Talking about the national average the returns on capital are 20% and profits are 16% of revenue.

>> No.26996720

>>26982282
What i would recommend. is taking out everything out of the space and grow aquaponics. You can reduce your overhead significantly by growing all of ur crops instead of getting it from farmers. Fuck grocery stores. BE THE GROW IT ALL IN PLACE STORE.

>> No.26996842

>>26982282
have to get a credit line with suppliers
budget changes as foods are seasonal
have to work with health department & commerce
need accident insurance on top of building & products
fire inspectors
liquor license
health insurance for employees etc etc
tax shit
more tax shit

100% worth it though, depends on long term planning is all. if you do buy it, sublet the deli to local butcher & fishmonger. sublet bakery. maybe do farmers market. get money from the rental space without spending on product.

>> No.26997050

>>26996659
>Talking about the national average the returns on capital are 20% and profits are 16% of revenue.
those ratios are irrelevant for a nascent business. successful or failure will be driven by cash flow, which is driven by net margin.

>> No.26997124

Grocery is a terrible idea.

Shrink is incredible in grocery, there's basically zero ability to weather dips. You won't have the margins to pay your workers a salary that will keep them honest, which is true in all retail, but particularly costly in grocery. If you do go ahead with this fool idea, make absolutely sure you are catering to the high end bougie market and for the love of god make sure your produce "Pickers" give you great shit.

>> No.26997220

>>26996406
Holop, so you be saying that my estimates were too optimist for quoting retail as a whole and not specifically grocery stores? Ok, fine, that only means there are retail segments with even more profit. Yes, i was talking retail as a whole out of laziness. I guess OP should then pick the most profitable retail segment and not necessarily grocery stores.
So please spare me 10 minutes of rooting through the ststistics and point out for me which is the most profitable retail segment

>> No.26997242

>>26996842
Fucking This

>> No.26997282

>>26997050
>>26996659
and, once again, the "profits" are nowhere near 16% of revenue. you are wrong. you're confusing gross profit margin (gross profit/sales) and net profit margin (net profit/sales.)

>> No.26997506

>>26997050
>a specific business isnt identical to the global average business
You dont say? Obviously each store would be different but im just making a reference to the typical situation, OP's store could either fail or be more profitable than average

>> No.26997584

>>26997220
>most profitable retail segment
selling hand made goods on an online marketplace. brick and mortar is a meme. your customer base is limited to those in your immediate geographic area and commercial real estate kikes bleed you dry through outrageous lease payments.

>> No.26997686

>>26997282
That 16% is NET
280 billion over 1700 in sales

>> No.26997841

>>26992100
That's true if your tenants aren't subhuman but most retinoids are.

>> No.26997920

>>26997506
OP has a few million dollars. tying it up in a low growth, highly competitive, high expense, low margin industry like retail is one of the worst ideas ever. if he wants to LARP as a businessman just start a low/no cost contracting business like i mentioned here >>26995737 or learn a skill/create a product like i mentioned here >>26997584 if he REALLY wants to LARP as a businessman just open one of the cheaper fast food franchises with low requirements for industry experience.

>> No.26998018

>>26982282
As someone who uses to manage one, you don't want it unless you really get off on the idea of helping your local neighborhood.

Half of that userbase will leave with the old man anyway.

>> No.26998054

>>26997686
give me the source to those claims and i will explain why they are wrong or not applicable.

>> No.26998078

>>26982282
I wouldn’t buy anything without doing extensive financial analysis. The fact that you don’t even know what the company is worth tells me you’re definitely not ready to run a business in a shitty cut throat market filled with competition.

>> No.26998527

>>26992100
Only because the housing market is so fucked. Ideally landlords should have to work to compete for tenants. But since most people are just desperate for a place to live, they can be lazy.

>> No.26998570

If it makes you happy, it's cool. But it will be a lot of work. You and your family essentially have to be there when it's open. Not something you can do passively.

>> No.26998816

>>26982282
Don't do that shit!
In ten to fifteen years all groceries will be bought on an app and delivered. Screen cap this post. The next generation won't even know what a grocery story is.

>> No.26998911

>>26997920
>LOW MARGIN HIGHLY COMPETITIVE BLA BLA BLA
Tell you what, a 20% return on equity is still above the national business average of 15%. Its also a good choice for a dumb neet as long as he owns the property and mops his own floor and stock his own shelves so he can weather slow business seasons. As for competition, small stores don't really compete with big stores, they cater for convenience to passerby, they sell Doritos, beer, chocolate milk and sliced cheese on the hood. They dont sell potatoes by the 8 kilo crate for 40 cents a kilo.
Other businesses may have higher profits but at increasing complexity. The complexity filters people. This is is why so many grannies with dementia can perform as landlords, the dumber the business the lower the profit. Retail is great for a novice neet as long as he owns the place and doesn't hire anyone.

>> No.26998936

>>26995593
>50000 people used to wash their clothes here, now it's a ghost town...

I grew up in a shack down by the river with no washing machine so I have fond memories of hanging out at the laundromat as a kid. It used to be a respectable place, now people look down on you if you go there.

>> No.26999012

>>26982282
If you're in a first world country, don't. Very low margins.

>> No.26999044

>>26998054
Bureau of economic analysis, use tables

>> No.26999063

>>26997920
Tbh I think larping as a businessman with a grocery store would be fun but only if you have other sources of income. With OPs stack he could stake/yield farm for enough money to keep himself going indefinitely, but this probably isn’t a good first venture. I wanted to open an italian style deli so I could play at being tony soprano but that’s gonna have to wait a while.

>> No.26999110

>>26985430
It was probably the only grocerer in town back then. He basically had a monopoly while also serving his community out of necessity.

>> No.26999149

>>26992100
>commies on biz
No, fuckass. Landlords have to deal with shit all the time. Like when (nigger tenants that they’re required to rent to) break a fucking window, or allow their nigglet to paint the fucking wall with a marker, or fucking burning the carpet to shit because they fucked up smoking weed/crack/whatever the fuck.

>> No.26999172

Buy a gamestop

>> No.26999248

>>26982282
Bezos is building his worker-free grocery stores across the country now, if you feel like competing with that.

>> No.26999253

Do you have AI run auto restock software like the big players?

>> No.26999256

>>26997841
This. Landlord can be either the easiest "job" in the world or it can be a literal living hell and you'll end up in the hole repairing their shit, cleaning their literal shit, calling the police and dealing with the police weekly etc. Really depends. And a clean background check and good credit doesn't mean jackshit either.

>> No.26999315

>>26984206
A charm

>> No.26999393

>>26998936
I thought for a sec you were going to talk about the memories of seeing the women beating clothes against the rocks by the river shore

>> No.26999394

>>26982282

If i could, I'd buy a business where i enjoy it enough to withstand the minutiae of things like inventory and bookkeeping. Do you really love groceries enough to wanna deal with 25 low wage workers and 150k inventory?

>> No.26999505
File: 14 KB, 250x250, 1597423257946.jpg [View same] [iqdb] [saucenao] [google]
26999505

>>26999149
>renting to niggers
I made the mistake of renting my duplex out to WMBF young couple, never again will I ever. I knew at the time it was a bad idea but it ended up being my worst fucking nightmare. The place is still sitting empty if that's any indication.

>> No.26999610

>>26985430
The bigger chains have economies of scale and a bunch of other advantages that smaller stores don't have. They can also brow beat suppleirs into lowering prices.

It used to be more local with very little competition. There are exceptions, specialty stores do pretty well. And stores that have high volume of high margin products like alcohol.

>> No.26999671

>>26999044
link me the exact page nigger, i'm not here to do your homework for you.

>> No.26999673

>>26995220
>Go into construction its a goldmine especially after taxes and stimulus.

Yes anon, go charge people out of their asshole for toothpick construction, hire Juan and Pedro to take siestas all day and make an unholy amount compared to what you’re worth. Construction is as close to being a Jew as it gets

>> No.26999720

>>26982282
you will be outperformed and undercut by the corporations buying kiosk machines right now. I support business venture, but make sure you are being smart

>> No.26999746

>>26985286

If you have money and want to learn, go to your local college and hire a tutor for a business economics class. That's one of the smartest things people never do.

>> No.26999778

>>26982282
Buy a dispensary instead

>> No.26999876

>>26999256
Low returns of 10% even in the best scenario. Its low return because its easy. National average returns are 15% for all business, yet 65% of capital is tied up in real estate yielding 10%, the other 35% of capital has 25% returns and raises the total average to 15%.

>> No.26999922

>>26983581
Just buy it and hire me as your produce guy. I have squeezed a few melons in my day.

>> No.26999950

>>26985837

Turbo impellers? For whom? I build aircraft engines and there's WAY more to it than just using a 5 axis cnc

>> No.27000029

>business does well "despite" a walmart 10 fucking MILES away
only in america kek

>> No.27000086
File: 37 KB, 600x576, 324.jpg [View same] [iqdb] [saucenao] [google]
27000086

>>26982282
put it all in doge

>> No.27000156

>>26999149
its interesting that the private company meme does not apply in these cases. people scream that its ok for twitter to choose their customers but suddenly a house owner cant decide to not rent to someone who will very likely only bring in losses

>> No.27000208

>>26999610
Small stores have advantages that big stores dont: Higher prices and migth be run by the owners so no salary expenses (for stores small enough). The bigger the store the supliers charge less but you deal with lower prices and more labor. It balances.

>> No.27000252

>>26982575
strip clubs

>> No.27000386

>>26999671
https://apps.bea.gov/iTable/itable.cfm?reqid=52&step=1

>> No.27000474

>>26984404
Can I get your opinion on climbing up through retail grocery? I started with a part time job at one of the major Kroger stores but I'm in lower management/supervising now. Basically I'm curious about your perspective on working up through these massive grocery chains.

>> No.27000536

>>27000156
there are plenty of ways to avoid renting to niggers if you aren't a midwit good goy. just sit on the applications and decline the niggers for vague reasons like "tenant with a better credit score" or "new tenant is a friend of the family" etc. and then destroy all documentation except for the lease agreement. it's legally defensible in this way.

>> No.27000617

>>26999505
Why didn't they get filtered out by a credit score screening?

>> No.27000814

>>26999505
Depending on where you are you have to if they can foot the fucking bill.

>> No.27000841

>>27000386
Btw, Im aware that's retail in general and not grocery stores. You dont have to repeat that. Though there are also slecific statistics for retail i didnt watch.

>> No.27000957

>>27000208
You're basically talking about a bodega if it's that small where one person can man it. Bodegas do have higher margins because people go in and usually buy higher margin products, but to make good money you'd need more than one bodega.

I suppose it depends on what you want. If you just want to keep yourself occupied and are ok with tiny profits that's something else.

I wouldn't say it balances it all though. Prices can't differ that much between a big store and smaller store or else they'd just go to the bigger store. Most of the people that I know making good money with small stores own more than one small store.

>> No.27001017

>>26982282
does it make a profit atleast? Your competing with big networked chains and with with the ebb and with the market crashes that are about to come. Ask the old guy for more information. I'd suggest you get into real estate, just make sure to sell before the fed hikes up the rates

>> No.27001090

>>26983821
>Literally just “meet X percentage gross margin” and “X vegetable spoils after X days so pull it before then”
Yeah if you go for it, details like this is what it’s all about.

To succeed plan to use a software package for inventory management & planning. Back up your software too. A lot of businesses fail because some old boomer just wings it. Look at his records and if it’s all paper or a huge excel file (boomers love that) then there’s the first problem you’ll be tackling.

Honestly even successful farming these days is dominated by farmers who are good with software.

>> No.27001142

>>26984206
The richest of all gentlemen

>> No.27001168

>>27000386
you do realize none of those tables say anything about profit margins, right? those are economic input/output tables, a means of tracking the flow of economic output from one industry, into another industry. understand what you are reading.

https://www.bea.gov/industry/input-output-accounts-data
>Total inputs by commodity required (directly and indirectly) in order to deliver one dollar of commodity output to final users

>> No.27001213

>>26982282
but a parking lot.

>> No.27001297

>>27000617
It was only my third tenant and I didn't know any better. I was back and fourth on what kind of checks I should be doing even though my gut feeling was no just don't even take them, but I didn't want to go another month without a new tenant. My state has all sorts of bullshit rules in favor of the tenant, and from what I could find basically ANY sort of check it seemed like was fucking illegal technically. So I ended up just saying fuck it and let them rent it. Like I said, dumb move and never again. This was before the chinkflu also, can't imagine how much more difficult it would have been to get them out after the last increase in tenant rights my state put through.
>>27000814
I also said fuck it on chasing them for this, they're shitbags and you can't bleed a rock. I realize I could have had their tax returns garnished and shit, but like I said after being out what I was I wasn't feeling like dealing with legal fees.

>> No.27001433

>>27000252
Sounds like more fun if you’re hands on

>> No.27001536

>>26982282
You can do it if you care. Just go all the way and other people will support you. Do your research, ask other owners. If the choice is between some mega-chain, and a local store, it might be worth it. Do you like where you live? Could you imagine staying there and becoming that old man?

>> No.27001545

>>27000957
People buy Doritos at a small store, big stores are for toilet paper and ground beef.

>> No.27001595

>>26982487
This. I've seen grocery stores come and go, but my nearest gas station has been there since I was a child.

>> No.27001658

>>26991779
Insider here, it's not always the sales profit annual. Depending on your food broker you get huge year end rebates for buying the product from the broker. It can be taxed to hell but there's ways for that.

Rebates will make you money in the grocery business.

>> No.27001742

>>26985430
It serves a bottom level need, so even a war zone with half the infrastructure gone is going to need a market. Margins are garbage because of economy of scale and competition.

Oh, op. Do df or gtfo.

>> No.27001743

>>27000536
maybe but it does not seem to be very acceptable to pick your customers in some cases. you will be raped with some discriminatory law if you arent very careful when you decline to sell to some faggot

>> No.27001754

>>26982487
Gas station might be a shitty idea because gas might go away with biden and other democrats pushing electric. It would take a while though.

>> No.27001825

>>26982698
It's this for most businesses. And if you hire people its because you are happy with the profits and are willing to let some go to be less hands on. Some may get stolen more because you're simply not there as often.

OPs case though, sounds like he needs to run it himself. Why the fuck do you want to work so hard? I think a better option will be to just buy an apartment building and hire a property manage company and you oversee them.

Still hands on but damn you're not grinding 24-7 trying to survive.

>> No.27001848

>>26982282
Buy property and a property management company.

>> No.27001873

>>26982282
Bruh, thin, very thin margins and work intensive. Get some real estate

>> No.27001946

>>26982575
a gym.

>> No.27001967

>>27001168
These tables include the flow of money. Towards suppliers, towsrds tge government and for salaries and gross income. No, these tables wont explicitly write down profit margin is x" but the infornation is still there. These are not financial statements of specific companies.
You better have a better criticism than " eh these tables don't say profit"

>> No.27002074

>>27001848
you usually need to be a licensed RE broker to run a pm co.

>> No.27002099

>>27001754
gas station is shitty because of the environmental pollution risks associated with underground storage tanks. if they leak, and they might if the tanks are decades old, you are absolutely and utterly fucked.

>> No.27002151

>>26983444
Checked. Also you crucified the guy. It was the right thing to do. OP you weren’t being rational, you were looking for justification to buy a buy a grocery store you don’t know the first thing about. You should do some business courses or books or something

>> No.27002162

don't just buy it, let him teach you on the job for at least 6 months. if he doesn't agree to that there's something fishy.

>> No.27002202

>>27001754
Gas yourself if you really believe that.

If the internal combustion engine is kill you have much MUCH bigger problems to worry about than losing your business

>> No.27002246

>>27001967
lmao you are a complete fucking idiot. what do you do for a living?

>> No.27002349

>>26982575
Isn't running apartments mostly like that? Besides maintenance.

>> No.27002657

>>27001168
These tables contain all the information but they wont talk in terns of profit but in terms of added value.
The added value is 1100 billion dollars of which about 200 billion go in tax and 650 billion in salaries. Net profit is 280 billion.
The added value is added over the "intermediate expenses" which are the costs of paying suppliers, about 700 billion dollars. Salaries are part of the added value.

>> No.27002681

why the fuck wouldnt you just buy high dividend stocks and retire and live off the dividends? i mad 6 figures off crypto and already went to part time from it.

>> No.27002761

>>27002681
because he wants to provide value to his community? lazy faggot

>> No.27002768

>>27002246
Thats not an argument, dont lose your cool. This is not a good look for you.

>> No.27003108

>>27002246
You are pretending this is complicated but can't even explain how. Thats why you are already resorting to insults.
All income-All expenses=Profit.
All these numbers are in these tables. If tou actually had an argument you would say what it is instead of saying LOL YOU DUMFUK YOU DONT KNOW SHIT

>> No.27003235
File: 313 KB, 1080x2400, Screenshot_20210129-090532_Robinhood.jpg [View same] [iqdb] [saucenao] [google]
27003235

You should buy steel and make 50 million like DFV lol

>> No.27003579

>>27002768
>>27003108
i work in accounting/FP&A professionally. you're a complete idiot, i'm not even sure where to begin with what you've said. crack open a college freshman level textbook on introductory accounting and financial statement analysis, for a start. your "analysis" is utterly wrong and completely divergent from reality.

>> No.27003753
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27003753

>>27002202
electric cars take away your freedoms. that fucker wont even start if it cant connect to the manufacturers drm servers and they can update the cars software at any time to change its performance or features

>> No.27003942

>>27003579
And im the queen of England, on the internet you are nothing. Just state what is wrong with my analysis or shut the fuck up. Protip: You cant

>> No.27004136

>>27003579
why bother fighting with trolls.. they just want to have fun with you

>> No.27004279

>>27003942
the inputs for your analysis are utterly wrong and you don't even understand why they are wrong. you can't even show your work at how you arrived at your output from your input dataset, but it's irrelevant because we've already established your inputs and your assumptions around those inputs are wrong. from this, you reach a conclusion that is utterly wrong. your conclusions contradict authoritative, industry-specific publications from multiple sources. in short, you have no fucking idea what you're talking about and you should probably go back to r*ddit.

>> No.27004305

>>26982575
The business you can afford to pay a kike to run

>> No.27004536

>>27004279
Why are they wrong? You keep saying this but cant actually point out how.
>you... You are just wrong... Respect my authority
Not an argument

>> No.27004686

>>27004136
i doubt he's a troll. he's either low a sincere iq retard (stupid and doesn't understand anything) or sincere midwit retard (thinks an economic input/output data is a useful abstraction when considering investment analysis at an extremely granular level.)

>> No.27005135

>>26982282
Look at his P&Ls and only consider the bottom line profit to be that AFTER a reasonable owner's wage. There's a reason that virtually all small grocery stores have closed. Grocery margins are like 3% on most stuff, shrink is huge, and the big box stores have killed their customer base.

Chances are after paying a reasonable wage to the owner (say $75k - $100k) there is zero or negative actual profit.

>> No.27005221

>>27004686
Im not a troll. If you had an actual argument you would say it instead of insulting me or just repeating "im right you are wrong". You have no actual arguments. See, if i was as stupid as you say i am it would take you 5 minutes to demolish my analysis. But you cant point out the supposed errors, right? Its just "wrong" you say

>> No.27005464

>>26982813
>Collect your untaxable cash
Kek. Enjoy being in the industries that have the biggest fucking IRS audit target imaginable. Have fun after the IRS gets the utilities to hand over your water bills and they send you a demand for the tax they think you should have paid.

>> No.27005855

>>26982487
Noooooooo don't do this you make nothing on gas and just a little on food. Dooooooooonnnn't.

>> No.27006172

>>26982575
Owning ATMs, pay-parking lots.

>> No.27006264

>>26982575
Lazy nigger. Buy a laundry mat.

>> No.27006748
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27006748

>>27004686
You went silent. This is official confirmation that all along you were the dumb troll. You dont have a single argument