Esther EluemeConsumables are goods that require recurrent replacement because they are used up or transformed in their use. The market for these goods tends to be consistent.
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Fast moving consumer goods FMCG) are products that consumers buy on a regular basis that are used up quickly such as food, office and cleaning supplies.
Fast moving consumer goods Fast moving consumer goods, also known as consumer-packaged goods, are items that usually sell quickly and for a relatively low price.
Here are some reasons to consider starting a consumable business if you’re looking to switch careers or even business lines, or just adding a new to an existing one.
1. Consumables sell faster and are relatively low in price. Imagine how many businesses closed shop at the wake of COVI-19 outbreak, like those selling houses or roofing sheets. These were about the least of people’s problems at this time. On the other hand, hand gloves, food items, groceries, tissue papers sold more than usually pre-COVID-19. Now you see why. These items don’t stay long on shelves and are not expensive to get. People will always come for them.
2. Sales Conviction is Easy. 98 percent of big companies you know spend huge sums of money in trying to show their brands and convince people to patronize them. This is different with consumables. You really do not need to spend a dime trying to get people to buy hair products, beverages that obviously keeps them healthy. They will look for you and come buy those stuff, and even buy in larger quantities for stocking. You can talk boldly and proudly about your wares that give value and satisfaction than the ones that people barely need.
3. Multiple Choice Options. When buyers are convinced that you can offer different opportunities to choose from, they keep coming back. You can also help consumers make informed choice depending on the product. You can suggest different brands of a particular soap or perfume highlighting their scents and content make-up.
4. Smaller Hurdles to Jump. There is a huge difference in selling a BMW, house, roofing sheets and selling soaps, groceries, cleaning and office supplies. It could take a car dealer a great number of weeks and months to sell one car but, consumable goods sell every day in season and out of whatever season. It does not matter if the brand is new or not, you have greater chance of selling a tissue paper faster than selling a roofing sheet.
5. Diversification of Goods. Selling a broader spectrum of products can put you ahead of competitors. The profits can help offset slow sales for other products during seasonal dips in demand or periods of reduced consumer confidence. In the category of CPGs/FMCGs, retailers can choose from among an almost unlimited range of product types including pharmaceuticals, food items, beverages, household products and disposable items. The range is so broad that some retailers, such as grocery stores and convenience markets, stay in business selling them exclusively.
6. Multiple Merchandise & Streams of Profits. A business looks at the bottom line, which primarily is cumulative profit they provide. Most consumables have low profit margins, which means that a small percentage of each unit sale gives a marginal profit. At some points, some of these goods sell in very high quantities. This means that those small profits add up and can form a significant portion of a retailer’s total profits for a fiscal period. This profit serves any number of financial purposes in the business. Retailers thrive when customers buy multiple items on each visit. provide opportunities for cross merchandising, which occurs when a business places two products from different categories close to one another in a strategic arrangement. If a seller puts supplementary items side-by-side it makes it easier to sell multiple items at once, for instance a TV Set with a stand or divider or wall brackets.
There has never been such a great time to consider selling fast moving consumable products when starting a new line of business or improving/diversifying an existing one than what COVID-19 era has shown us. Consumables create easier chances to thrive both at the best and worst of times. Convincingly, it is the right business to do when times are even tougher, because people make sure to stock and re-stock things they use regularly. Do well to give the best of quality to keep them coming back to you for more.
You will be sure to come back thanking me for these helpful tips.
Credit will also go to: Dennis Hartman and Chris Estey.
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