We are thrilled to share an inspiring case study of a business owner who successfully increased sales and reduced costs across their chain of stores specializing in CBD products, vapes, and related items.
By the end of this article, you'll discover how much the entrepreneur earned in a year by implementing these changes across all five of their stores.
This innovative entrepreneur, whose name we cannot disclose, utilized cutting-edge methods and technologies to optimize their business. We are excited to present their success story. Our client manages a network of stores, each approximately 25 square meters (or 269.10 square feet), excluding warehouse space. These stores operate 12 hours a day, seven days a week, with two hourly-wage employees working in shifts, resulting in a monthly payroll expense of $5,400, excluding taxes.
1. Sales Analysis: Initially, our client conducted a comprehensive sales analysis to identify periods of low customer activity.
2. Product Popularity Analysis: Subsequently, the client assessed product popularity to identify the most in-demand items.
3. Product Assortment Optimization: Using these insights, the owner refined the product assortment to focus on the most sought-after items.
4. Vending Machine Integration: To streamline the sales process, the client selected and ordered vending machines with the appropriate number of slots and an AI Verifier device to verify customers' ages.
This case is particularly noteworthy as it was their first experience with vending machines. Despite this, they quickly and efficiently configured the vending machines and trained their staff.
1. Store Layout Restructuring: The owner divided the store into two separate areas, installing surveillance cameras in the vending machine area and relocating the alarm system to the main retail space. This improved store security and enhanced sales monitoring.
2. Internet Connectivity: Additionally, internet cables were meticulously laid in the vending machine area, enabling effective inventory management and sales monitoring.
Ultimately, the network store owner achieved remarkable results. They reduced payroll and tax expenses by $2,600 per month, while the vending machine generated an average monthly revenue ranging from $2,700 to $3,350. This demonstrates that innovation and optimization can lead to significant profit growth.
Our client fully recouped their investments in just three months, excluding the initial month for renovation, device acquisition, vending setup, and staff training. Inspired by this success, the owner expanded this successful setup to their remaining five stores. This case illustrates that careful analysis and innovative approaches can work wonders for your business, leading to successful development.
