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Grocery On Call

By Hitesh Bajaj on 9 Comments / 4180 views

Hello Friends,

This is my first post here.

I am planning to set up “Grocery On Call” in my area(Ahmedabad – Kubernagar, Sardarnagar, Naroda).

I have some query about inventory.I have to choose one of the following

1) Should I stock up inventory 

2) Should I tie up with some wholesalers, as and when i get an order, i take inventory from Wholesaler and deliver.

I don’t want to go with as it would require much more capital.

Any Suggestions are welcome. 

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9 Comments

  1. hitesh, 

    which area??? which city?? pls add some more info to your post!

    i’m not a retailer but my common sense tells me first tie up with a wholesaler. and then when you become popular and have a regular customer base you can run a monthly/weekly check with them – take note of their fav brands and stock up accordingly (i presume real estate is not an issue for you?)

    pls start using the search engine – you will find posts that can help you.

    pls reach out to tanutejas of shopkirana – https://www.therodinhoods.com/forum/topics/indore-s-first-e-grocery-portal-is-live-www-shopkirana-com-1

    and raghav of go onions – https://www.therodinhoods.com/forum/topics/online-shopping-for-fruits-and-vegetables-in-gurgaon-goonions

  2. Thank you asha for prompt reply.

    I am planning it in Ahmedabad (Kubernagar, Sardarnagar, Naroda).

  3. then you must get in touch with ashish 

    https://www.therodinhoods.com/profile/AshishParik

    pinging him for you!

  4. Hi Hitesh,

    One of the best and very close to my heart concept…..Was planning to start it in Aurangabad around 13 years back, but stuck in job. 

    To be very honest not happy with “My area”…. may be you want to say “want to start with my area”. 

    1. Go to a society with around 80+ houses. You can start with your own housing complex. 

    2. Check their monthly consumption of grocery.

    3. Get a simple format prepared and printed. Like

    SrNo                           Product                Brand                  Weight                    Variant

    1.                                Paste                  Pepsodent            100 Gm                   Gel

    4. After having data of around 50+ houses, you can check which are the products with lower and max margin.

    5. Buy products with max margin from whole seller or distributor or Reliance Hyper (whole sale wala)

    6. Tie up with 2-3 good retailers. Source products with lower margin from retailer. negotiate for some margin.

    7. You can offer discounts to your customers on the basis of deals you crack with whole seller and distributors. You need to collect data of distributors of different FMCG products and whole sellers. 

    8. Keep 2 options. A) Fixed monthly grocery with free home delivery for members. B) On call with minimum cap. In second option the cost of logistic will go up. 

    9. You can also add up vegetables and running errands. 

    10. You can always feel free to call me, any time any day. 8905 365 24 7.

    All the best…. Start with area and cover the nation…. Ashish S parik, the cakeman who deliver feelings. 

                        

  5. Thank You Ashish for wonderful suggestions,

    Yes I meant, Starting with my area.

    I will start plan and will implement the things brick by brick. 

    Thank you for your wishes, will surely contact you in case of needs and suggestions. As we are already connected,:)

  6. some good ideas above from asha and ashish. runs some quick numbers in terms of how much volume and margins u need to break even initially…and u might come up with a hypothesis on which one to start with

    +

    if you’re serious about this for the long run and want to scale it, you should probably read about some case studies on how other startups approached this problem in India and how they scaled …e.g., localbanya, zopnow

    Instacart in US has a different model, but they charge a premium…don’t think charging premiums would work in India…but nevertheless take a look at it.

    good luck!

  7. Unless you have deeep pockets, bootstrapping is a good idea.

    I recommend starting with Instacart’s fulfillment model.

    Map your first quarter revenue, and then decide if stocking up will make a marked difference to your bottom-line.

    Chk https://bigbasket.com They’ve established relationships with major brands & manage the last mile.

    Here’s wishing you the best!

  8. Hey,

    My experience says”

    1) Dont keep stock if you are just testing the model. Or if you are keeping stock, plan in advance how you will sell it via offline media cuz it takes time to do online sales. Specially in grocery. 

    2) If you go with this model, again you will be frustrated as there is already a very low margin in groceries and by visiting whole seller to pick up the products and then delivering it is REALLY REALLY frustrating and not a good idea. (I DID THE SAME MISTAKE WHEN I STARTED SHOPKIRANA.COM)

    I suggest you to figure out something else. Crack some other model. 

    All the very best.

  9. MUST DO: background check with others who’ve done it before & burnt our, or are living this start-up right now.

    https://www.raatkabaniya.com

    http://www.Shopkirana.com (Thanks @Tanutejas)

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