₦airaland Forum

BlueRayDick:
Am I the only one that has problem with this Booku mart business model and have a feeling that their business model is not sustainable in the long run?

I mean the way their branches spring up almost everywhere, the whole thing looks like it's all backed up by emotions and not real business sense.

For example there's an area I do drive pass. The stretch of that road on Google map is 5.8km and there are 3 Booku mart on that single road. 2 of the outlets had been in operation for over a year now and the 3rd one was recently opened on the same road. They are just separated by few bus stops from each other.

How will they breakeven if as business owner selling groceries u have 3 outlets competiting for the same customers who live within the space of 15 minutes drive? They will have to run diesel generator or NEPA light througout their opening hours, pay staff, pay land use charge and other government taxes and rates for all 3 outlets. The crazy part is there are couple of other supermarket not named Booku on that same axis who sell almost the same thing they sell.

Then there are customers who would rather buy some of their groceries from a major market that is not far from the area.


I may be wrong, but I have placed Booku on a watch list of businesses that may fail in the nearest foreseeable future.

Lol,they are using the bet9ja model which have stood the test of time...

HEZB CHIEF NASRALLAH- ELIMINATED

SUCCESSOR 1- HASHEM SAIFUDDIN - ELIMINATED (72hrs)

SUCCESSOR 2- AMIN AL SAYYID- ELIMINATED ? (36hrs)

Yet to be confirmed by the @IDF

ISRAEL masterclass in war against te₹₹or continues ..

HEZBOLLAH leadership compromised to the core

BlueRayDick:
I learnt the nylon selling is to discourage people from actually using nylon. More like their own quota to going green.

You know abroad nylons are recyclable. The idea is that u will use the nylon u buy today, keep it for next time instead of throwing it away Like u would do for nylon given to u freely because u know u will get another one tomorrow.

I've never been interested in their bread because I can't join any yeye queue to buy bread when I have enough decent bakeries close to me where I can buy bread without any hassle.

The Bread is actually tasty though.

But after two days...It loses that taste

Amigoss:
Lol,they are using the bet9ja model which have stood the test of time...

How does Bet9ja model work for a grocery store?

Bet9ja are not selling physical goods, rather they are selling a promise to pay you sums of money if you are lucky enough to guess the outcome of football matches. The fact that only few lucky ones can predict correctly outcome of football matches has already made Bet9ja a profitable business before it even starts operation.

Same cannot be said for a grocery store business in this current economy. They are selling physical products which they will need to rely on the amount of disposable income available to their would be customers in this hard times. The fact that they need to pay a number of staff salaries, fuel their big diesel generator, pay various forms of government levies and even engage in CSR out of the little profit they make from selling goods a little above cost price is enough to put a hole in their pocket.

Now the major profit they can make is on the volume of sales they can make. Having 3 outlets within the same axis and expending the same cost in each of the 3 outlets seem like a very fooolish business decision from where I stand. Why not maintain one outlet and then use marketing and customer service to drive large volume of sales from that single outlet?

Nezzjnr:
The Bread is actually tasty though.

But after two days...It loses that taste

Well, maybe it's the cost of materials that has affected the quality of their bread now.

Itsrm:
In the words of my man Oasisx, we all know what we are doing.

Walahi this ur loyalty is making you look like a fool.

OasisX:


......Akwa Ibom Governor dashed Senate President his LG while PDP clear the remaining LGs. LOL!

Didn't I keep saying Akpabio and Umo Eno are in bed? Two weeks to the LG Council election while handing over the flags to the party candidates, these were the Governor's exact words: "All of you should campaign based on issues and things you would do. Campaign based on our achievements as a party in this state. Do not attack the federal government or the party at the center. It must be issue-based campaign."

In return, Akpabio didn't back strong men in the APC or endorse anybody. The APC in the state have some sort of truce with the PDP due to Akpabio's romance with the PDP Governor.

Odd because former Governor Udom became Akpabio's enemy and wanted the incumbent to inherit his enemies.

The unspoken rule is, 2031 would be Akpabio's senatorial district's turn for Governorship. And Akpabio gets the right of first refusal to choose a successor with the Governor's blessing. He's charmed his way into being loved by the opposition and everyone. I didn't think it was possible. Gets them front-row seats at state functions too.

But I think Akpabio would be under pressure to capture the state for the APC in 2027 as Senate President to prove his mettle. There the real drama might start.

BlueRayDick:
Am I the only one that has problem with this Booku mart business model and have a feeling that their business model is not sustainable in the long run?

I mean the way their branches spring up almost everywhere, the whole thing looks like it's all backed up by emotions and not real business sense.

For example there's an area I do drive pass. The stretch of that road on Google map is 5.8km and there are 3 Booku mart on that single road. 2 of the outlets had been in operation for over a year now and the 3rd one was recently opened on the same road. They are just separated by few bus stops from each other.

How will they breakeven if as business owner selling groceries u have 3 outlets competiting for the same customers who live within the space of 15 minutes drive? They will have to run diesel generator or NEPA light througout their opening hours, pay staff, pay land use charge and other government taxes and rates for all 3 outlets. The crazy part is there are couple of other supermarket not named Booku on that same axis who sell almost the same thing they sell.

Then there are customers who would rather buy some of their groceries from a major market that is not far from the area.


I may be wrong, but I have placed Booku on a watch list of businesses that may fail in the nearest foreseeable future.

They offer some of the best prices around, like there's a Bokku Mart that shares fence with another shopping mall close to my place, the price difference between what Bokku Mart sells and what the other shop sells is always at least 50%. For example, last week I bought Nescafe small sachets from Bokku Mart at #100 per, the other shop was selling same at #250 per.

I think their low prices and proximity to buyers might be a competitive advantage, though one can't say ultimately what their margins would be like.

BlueRayDick:
Well, maybe it's the cost of materials that has affected the quality of their bread now.

Their bread has always been shyte, Lagosians would queue up to eat practically anything. In this Lagos o, I've learnt not to use people queuing up in front of eateries, bukas or bakeries to judge quality.

Oct 7,never forget. Barbarians from the pit hell(Gaza) invaded the holy land of God.


wether you a part of Hamas or not I have no sympathy, cause Palestinians celebrated that day like they won world cup,I never saw them as humans again.

BlueRayDick:
How does Bet9ja model work for a grocery store?

Bet9ja are not selling physical goods, rather they are selling a promise to pay you sums of money if you are lucky enough to guess the outcome of football matches. The fact that only few lucky ones can predict correctly outcome of football matches has already made Bet9ja a profitable business before it even starts operation.

Same cannot be said for a grocery store business in this current economy. They are selling physical products which they will need to rely on the amount of disposable income available to their would be customers in this hard times. The fact that they need to pay a number of staff salaries, fuel their big diesel generator, pay various forms of government levies and even engage in CSR out of the little profit they make from selling goods a little above cost price is enough to put a hole in their pocket.

Now the major profit they can make is on the volume of sales they can make. Having 3 outlets within the same axis and expending the same cost in each of the 3 outlets seem like a very fooolish business decision from where I stand. Why not maintain one outlet and then use marketing and customer service to drive large volume of sales from that single outlet?

if the numbers are not making sense, it may be a well packaged money laundering operation for some prolific yahoo boys.

the other possibility is they have some foreign backers with cash who aim to price the competition out of the market in the short run, after which they can raise prices as a a monopoly which is what 'disruption' is in a nutshell.

however i visited one the other day around egbeda and i did not see any significant difference in price

I hereby move the motion to remove obainojazz for embarrassing himself on this Fantasy League. I am so ashamed of him at this point

If you are in support say YAY and if you oppose say NAY

Maybe I will let him win one

raumdeuter:
I hereby move the motion to remove obainojazz for embarrassing himself on this Fantasy League. I am so ashamed of him at this point

If you are in support say YAY and if you oppose say NAY

Maybe I will let him win one

I had professional exam and kept forgetting to update my FPL since that’s the time I read as well.
I don write am so I’ll be back in the game

Theflint1:
They offer some of the best prices around, like there's a Bokku Mart that shares fence with another shopping mall close to my place, the price difference between what Bokku Mart sells and what the other shop sells is always at least 50%. For example, last week I bought Nescafe small sachets from Bokku Mart at #100 per, the other shop was selling same at #250 per.

I think their low prices and proximity to buyers might be a competitive advantage, though one can't say ultimately what their margins would be like.

I have examined the competitive advantage angle but it's still not adding up. I bought something twice in one of their stores and the price difference is not like what they usually put up online. For example thedifference in the price of their bag of rice and that of regular omo igbo is not even up to 2,000 naira as at that time.

In fact it appears they only have discounted price in few items while majority of their products are sold the normal regular prices

GloriousGbola:
if the numbers are not making sense, it may be a well packaged money laundering operation for some prolific yahoo boys.

the other possibility is they have some foreign backers with cash who aim to price the competition out of the market in the short run, after which they can raise prices as a a monopoly which is what 'disruption' is in a nutshell.

however i visited one the other day around egbeda and i did not see any significant difference in price

The bold is what I also noticed which promoted me to be wondering if the volume of sales they make will be enough to cover all their overhead expenses, cover their cost of capital and still allow them to post profit at the end of the month.

I think read somewhere that the promoters of the business are foreign ( maybe Germans or thereabouts), but that in itself will pose a big problem for them if it's true. If they are foreign owned they will not want to cut corners and will always want to follow the legal way of doing things in Naija. It will be difficult for them to do business and make it if they always follow the rules here while offering discounted prices.

Theflint1:
Their bread has always been shyte, Lagosians would queue up to eat practically anything. In this Lagos o, I've learnt not to use people queuing up in front of eateries, bukas or bakeries to judge quality.

I've never been a fan of queuing up to buy anything that has a close substitute somewhere close. It just irks me that I will be on a long queue to spend my own money.

The only thing I would stay on long queue to buy is PMS and that is even when I want to buy much inside a car. That's because of the price difference in between major marketers' and independent filling stations.

[color=royalblue]I remember those days in Enugu, when Shoprite just came to Polo park.

Na so i go dey queue for bread. Chai. I fall my hand.

And just outside the Polo park, there was another eatery; Celebrities, that had a better and tastier bread.

Lord, thank you for delivering me from such iberibeism.[/color]

BlueRayDick:
Am I the only one that has problem with this Booku mart business model and have a feeling that their business model is not sustainable in the long run?

I mean the way their branches spring up almost everywhere, the whole thing looks like it's all backed up by emotions and not real business sense.

For example there's an area I do drive pass. The stretch of that road on Google map is 5.8km and there are 3 Booku mart on that single road. 2 of the outlets had been in operation for over a year now and the 3rd one was recently opened on the same road. They are just separated by few bus stops from each other.

How will they breakeven if as business owner selling groceries u have 3 outlets competiting for the same customers who live within the space of 15 minutes drive? They will have to run diesel generator or NEPA light througout their opening hours, pay staff, pay land use charge and other government taxes and rates for all 3 outlets. The crazy part is there are couple of other supermarket not named Booku on that same axis who sell almost the same thing they sell.

Then there are customers who would rather buy some of their groceries from a major market that is not far from the area.


I may be wrong, but I have placed Booku on a watch list of businesses that may fail in the nearest foreseeable future.

[color=royalblue]Well, until you access their books, you may not know why they have 3 outlets on the same road.

While it is no longer news that retail stores, petrol stations, real estate and hotels are cover ups for illegal incomes, dem fit get a good reason why they decided to open more.

I have never eaten Bokku bread. I don't even intend to sef.[/color]

Sportsweb:
HEZB CHIEF NASRALLAH- ELIMINATED

SUCCESSOR 1- HASHEM SAIFUDDIN - ELIMINATED (72hrs)

SUCCESSOR 2- AMIN AL SAYYID- ELIMINATED ? (36hrs)

Yet to be confirmed by the @IDF

ISRAEL masterclass in war against te₹₹or continues ..

HEZBOLLAH leadership compromised to the core

To make mouth is easy. Now no one wants to be Hezbollah leader. Even Ayatollah dey hide for cave now without network and internet.

BlueRayDick:
How does Bet9ja model work for a grocery store?

Bet9ja are not selling physical goods, rather they are selling a promise to pay you sums of money if you are lucky enough to guess the outcome of football matches. The fact that only few lucky ones can predict correctly outcome of football matches has already made Bet9ja a profitable business before it even starts operation.

Same cannot be said for a grocery store business in this current economy. They are selling physical products which they will need to rely on the amount of disposable income available to their would be customers in this hard times. The fact that they need to pay a number of staff salaries, fuel their big diesel generator, pay various forms of government levies and even engage in CSR out of the little profit they make from selling goods a little above cost price is enough to put a hole in their pocket.

Now the major profit they can make is on the volume of sales they can make. Having 3 outlets within the same axis and expending the same cost in each of the 3 outlets seem like a very fooolish business decision from where I stand. Why not maintain one outlet and then use marketing and customer service to drive large volume of sales from that single outlet?

Your point is very valid but it's still subject to what's reality on ground.

I can choose to have a huge shop or have three small ones. Total overhead cost will still be the same. I can also have the advantage of spread and proximity.

izzou:
[color=royalblue]Well, until you access their books, you may not know why they have 3 outlets on the same road.

While it is no longer news that retail stores, petrol stations, real estate and hotels are cover ups for illegal incomes, dem fit get a good reason why they decided to open more.

I have never eaten Bokku bread. I don't even intend to sef.[/color]

While it's true that except one have access to their books one cannot really know the true picture of things ; it is also possible to have peek at things from the outside considering the macro business environment.

All the buildings they are putting up now, Milano generators and other assets they are acquiring are being acquired now at a cost that is between 1,500 to 1,700 per dollar o. The naira still continues to bleed against the dollar. Those assets are fixed costs.

They will be selling their goods in naira that keeps plummeting almost everyday. Even if they manage to make some level of profit by selling more than some of their competitors, that naira gain will be eroded when you consider time value of money with CBN steadily increasing interest rates sef.

That's why I'm wondering why they need to have 3 different outlets with each outlet having it's respective fixed running cost. Why not just have one outlet within an axis and then do as much selling as u can in that single outlet. If your product is as cheap as you make it seem, people won't mind driving 10-15 minutes to the store or boarding ₦200 keke to buy from you.

Spy360:
Your point is very valid but it's still subject to what's reality on ground.

I can choose to have a huge shop or have three small ones. Total overhead cost will still be the same. I can also have the advantage of spread and proximity.

The total overhead can never be the same na haba.

Let me give u an example : The bokku mart has bakery in each of their 3 outlets where they roll out bread. While constructing each outlet they will install large heat extractor, buy one soundproof Perkins or Mikno generator etc. If they had just one outlet in that axis they don't need to spend on 3 heat extractor but 1; they also just need to buy a generator that will cost let's say 75m instead of buying 3 smaller ones for 30m each (totalling 90m).

Also their competitive pricing is enough to make people take ₦200 keke to their store and back to their respective homes. Driving from one stretch of the road to the other within which they have all 3 outlets no pass 15 minutes drive for a very slow driver.

obainojazz:
I had professional exam and keep forgetting to update my FPL since that’s the time I read as well.
I don write am so I’ll be back in the game

Success Bro

BlueRayDick:
The total overhead can never be the same na haba.

Let me give u an example : The bokku mart has bakery in each of their 3 outlets where they roll out bread. While constructing each outlet they will install large heat extractor, buy one soundproof Perkins or Mikno generator etc. If they had just one outlet in that axis they don't need to spend on 3 heat extractor but 1; they also just need to buy a generator that will cost let's say 75m instead of buying 3 smaller ones for 30m each (totalling 90m).

Also their competitive pricing is enough to make people take ₦200 keke to their store and back to their respective homes. Driving from one stretch of the road to the other within which they have all 3 outlets no pass 15 minutes drive for a very slow driver.

I agree to what you have said. I only mean that reality may be different. For example, while they may suffer all these challenges, they may enjoy the advantage of having a wider spread and proximity.

If a simple 1min walk can take me to a shop where I get good prices, I can visit there twice a day.

So there must be some kind of advantage that the model provides especially with the current transportation costs

Spy360:
I agree to what you have said. I only mean that reality may be different. For example, while they may suffer all these challenges, they may enjoy the advantage of having a wider spread and proximity.

If a simple 1min walk can take me to a shop where I get good prices, I can visit there twice a day.

So there must be some kind of advantage that the model provides especially with the current transportation costs

Well, one never can tell Sha.

That's why I said I put them on a watch list of businesses that may fail in the nearest foreseeable. I won't be surprised if they find it hard to sustain the model in the long run.

The New Numbers — Universal Number System.

[color=royalblue]I can imagine the laughter wey go dey flow inside court.



Funny case[/color]

https://www.nairaland.com/8232797/police-arraign-woman-refusing-marry

It doesn't stop there, I think you can prosecute those ladies who collect transport money without showing up

izzou:
[color=royalblue]I can imagine the laughter wey go dey flow inside court.



Funny case[/color]

https://www.nairaland.com/8232797/police-arraign-woman-refusing-marry

I had to Google Victoria Effiong to see the woman with this strong jazz. In this hard economy guys are being obtained like this.

iamoyindamola:
It doesn't stop there, I think you can prosecute those ladies who collect transport money without showing up

[color=royalblue]You send 5k for transport. She doesn't come

Then you
1) Pay transport to go to the Police station and report

2) Settle dem for counter and write statement

3) Drop money for IPO wey go follow up the case with the girl

4) Then she no gree refund, and then you head for the court.

5) Pay the necessary fees to file the case

Should i go on, Sodiq? [/color]