I have thought about franchising 7eleven, but it'll require a higher lump of money compared to my own brand of minimart. Besides that, minimarts like K.K and 99 speed mart have better traffic(more customers) compared to 7eleven(dont you think so? and they sell their items cheaper than 7eleven). How much capital is required to start my own minimart? More suggestions are welcomed!

Anyone here has experience running their own minimart?

KK and 99 provides cheaper selling price, but 7-11 got more coverage and operating around the clock. People go to 7-11 not because they're cheap, but because they're convenient.

I live in Bandar Baru Ampang and there's a KK Mart at the Waterfront. They sell Kinder Bueno at RM3.90 and 7-11 sell at RM4.30. I'll still buy at 7-11 at any given time just because I can reach there on foot, instead of driving to KK Mart.

Capital is not your major concern, location is. If your store is located at some god forsaken place, how cheap your stuff are also you'll have hard time maintaining existing customers and getting new customers.

Thank you for your valuable opinion. Yeah, you've got a point there....location is a major concern.

Anyway, I find many K.K minimarts are located at the same place with 7 eleven's. Why would someone choose 7 eleven over K.K if both are located at the same area?

Location.

If it makes no difference to walk to KK Mart, then I'll definitely shop at KK Mart. But, most of the places I've been to, 7-11 is a lot nearer than KK Mart. There's only 1 KK Mart in Bandar Baru Ampang, and at least four 7-11s around, right outside of neighborhood. Geographically speaking, youngsters like me would just walk to 7-11 since it's just outside, despite being more expensive. Makes no sense to drive all the way to KK Mart too just because it's 50 cents cheaper, because all I need is a quick fix of junk food.

So this is more or less a strategy game. You need to be as close as possible to your targeted customer base. It's either this, or you offer things people can't get at 7-11.

For the time being I don't think investing in minimart a smart choice. Everything is going up in price now and soon. And it's burning our pockets, convenient stores are charging much more than hypermarkets. And not to forget, more and more of these hypermarkets are mushrooming.

So the strategy now is not "cheap" but "convenient". Hypermarkets are mushrooming, but can they open one in every 10KM?

Yup Hypermarkets like TESCO, Mydin, Carrefour, GIANT are mushrooming.

Besides these Minimarts are built nearer and more convenient, they are opened 24 hours a day. They fish customers during midnight.

This post has been edited by mrkenn: Dec 25 2010, 05:40 PM

Well, they can't.

Angelsinlove knows the market better than you do. Trust me.

Sure. I know the people better than you do. Trust me.

The price to franchise 7-eleven is sure high. A small minimart selling groceries, drinks, slippers, magazines would sound better eh?

Well, they can. The only obstacle is if they have the capital to actually start it, and to keep it running.

When the first 7-11 opened in Taiping, everyone laughed and said as if anyone will actually shop there it's so much more expensive. Now you can easily find one in each neighborhood.

It's a different story for hypermarkets. Being big and cheap does not benefit you all the time, especially when it comes to proximity war. You got a larger cost to maintain with profit spread thin by each one you open in neighborhood next to your existing one.

There's a reason they're called "convenient stores". They are supposed to be convenient. Let's say you have a sudden desire to have a bottle of coke. Hypermarket 10 minutes drive away or convenient store right out side of your neighborhood, what's your choice? What's the better choice?

In franchising 7-11, you're paying for a reputable brand. A new 7-11 just opened in Subang USJ Summit 3rd floor, right in front of the cinema. It's going to crush the convenient stores at the same floor near bowling center, simply because 1) it's 7-11 and 2) you can find your junk food much easier and in better condition.

You can still make it by not being 7-11. But you have to learn from them. One thing 7-11 has and other convenience stores don't have = presentation. Everything is neatly placed, easy to find. Pick, and pay, no further question.

Sometimes it is also depends on the company... 7-11 can attract more customer because it is more popular than KK Mart... Just like Toyota vs Kia... Why people still buy Toyota since Kia sells car at much cheaper price and their features is

Location is also another factor. Since Bandar Baru Ampang have 4 units of 7-11, and there is only 1 KK Mart, why dont u try open another KK Mart there and maybe Cohab will be your regular customer

Exactly. Open one right in front of my flat block, at the commercial block. The existing convenient store suck in quality of service and presentation so much I advise people not to shop there. Don't have to be 7-11 or KK Mart. Do it right, and your customers will be your best advertisement.

If there is a customer short of money let say 50cent just give them discount and if your customer is an old man, old woman or pregnant woman carrying heavy stuff help them put their groceries into their car.

You can't compare with 7-11 are well known by Malaysian even your shop cheaper and locate side by side. People will automatically enter 7-11.

Exactly, company is the main factor...

---

Added on December 25, 2010, 6:37 pmIs this yr location? 3.139916,101.769512

This post has been edited by MonfereBlogspot: Dec 25 2010, 06:37 PM

Close but not that area it's off the map, google haven update to the latest changes

So that is a new area?

This topic is very interesting I have been eyeing to open a minimart or a convenient store as well...however for minimart if ever notice...it is dominated by a particular race ...I love to learn from them...if you want to start on your own without buying any brand..you can look up for business for sale...most minimart are up for sale anywhere between 50K-100k and it depend on the stock and rental that they have..

Anyone here has been involved in minimart business? Come share your experiences

I am looking for minimart operators.

What uniqueness is there in your minimart?

Being a tailgater in location isn't a bad idea. You save plenty of research time and money. Have you noticed that whenever a Jusco starts in a new location, Tesco, Carrefour, Giant will soon to follow. The tip is, go look at renting a lot nearby 7-11, KK & 99. Your goal now is to find the shop that earn the highest turnover permonth. Which can be translated into, you have found the biggest pool of minimart customers in that area.

With skills and personality, you go get the average figures for the past 6 months so you can decide:
1. How much % of the market can I gain by entering here?
2. How much is the profit, min-max-average is expected to grow for my next 6 months?
3. Am I comfortable with the margin by competing here?

Price = Cheap always the Better Choice.
Service = Friendly Staffs, and Beauty is a Bonus.
Conveniency = Variety Products, Easily search N found, Location, Ample Parkings.
Hygience = Clean, Fresh Products.
Human = As below

Human, from my observation, tends to walk under / inside shady places away from the sunlight.
So avoid getting a shoplot that is directly under sunlight in the morning AND evening.
If you can't have the luxurious of having both, because sun either shines into your shop in morning OR evening,
then go for morning shade. Most people will stay home after lunch til late evening for dinner.
So it doesn't matter if your minimart is in the sunlight in evening. Morning crowd is your business.
Opening 7:00am could be your main attraction for the pasar auntie uncle after a cup of tea, if the rest of the business are opening late at 10:00am when most crowd already preparing to go back home or office.

It burns electricity and air conditioning lifespan too if you're in for a long hot day.
So pick your choice accordingly.

The above is solely my own opinion.

This post has been edited by dreamKrusher: Jan 5 2011, 12:23 PM

Wow that's quite detailed from you. Thank you. Anymore bits from others?