Just like housing, why does one home in one suburb sell more than the same home in another suburb?
There are number of reasons why stores that trade similarly sell at a higher price than the other. These can be location, age of store, type of centre, size of store, Gross Profit, competition, and also rent. Not all stores are the same. A store that has a lower rent and lower GP could sell for more than a store with higher GP but average rent. A bit strange isn’t it? It is important that when comparing stores that these items are looked at individually as a store that is say 6 years old would potentially have less maintenance and repairs or equipment to replace than a store that is 15 years old and has had little or no equipment upgrade completed. To ensure you maximise the return on your business you should review how old your equipment is, and look at investing in new equipment each year. Make sure all current refrigeration and equipment is serviced regularly. Ensure that when the opportunity comes to have a rent review completed if you feel you are paying too much, or there has been a dramatic downturn in the area. Present your business well with a fresh coat of paint and new polished floors, stocked shelves as this will make difference on the number of buyers potentially interested in your business. The more buyers interested the better chance of selling your business at the best price.
David Zampech
Supermarket Specialist
Mobile: 0422 671 375
Email – [email protected]
PAY FOR THE PAST, BUY FOR THE FUTURE
