When it comes to setting up a new business, it can often be an anxious time as you have no idea whether your venture will be a success or a failure. Many entrepreneurs have to invest a lot of money into their startups, paying for things like leasing premises, hiring staff, buying equipment and machinery, and so forth.
An exciting way to cut down on costs and “test the water” is to set up a pop-up store. In case you didn’t know, a pop-up store is one that operates out of a trailer or van and can get set up virtually anywhere. If you’re thinking of setting up a new retail business, here’s five reasons why such a concept works so well in the 21st century:
1. You can get close to your target audience
One of the brilliant things about pop-up stores is they allow you to get close to your target audience. You don’t have to worry about leasing a retail store that could potentially be positioned in an area with little foot traffic, nor do you need to concern yourself with the associated costs. A pop-up store enables you to select somewhere in your locale that you think will be busy most of the time.
2. You can spend more on stock
It’s a well-known fact that the more you order from a wholesaler, the lower each unit price will cost. With that in mind, you can position your prices so that you maximize your profit. For example, let’s say you wish to open up a pop-up store selling beauty products. Because you don’t need to pay expensive store leases, you can afford to invest more in your stock from wholesale health and beauty care suppliers.
3. You can form relationships with your customers
A pop-up store, by its very definition, is a small retail outlet. As there isn’t much physical stock or store floorspace to manage, you can afford to spend more time talking to your customers and learning more about their buying habits. Another advantage is that you build a rapport with them, resulting in increased repeat customers. Those are two things you can seldom do if you’re running a business from a retail store.
4. You can take your store to special events
It’s physically impossible to remove a bricks and mortar retail store and temporarily locate it at a special event such as a social gathering or festival. As you can appreciate, the fact that a pop-up store is mobile means you can take it with you and set up your storefront wherever you are in the country!
5. Pop-up stores create a sense of urgency
One of the downsides of having a retail outlet is that it gives customers the impression they will be there forever. As such, they sometimes forget to buy anything from such places. With a pop-up store, many customers will have the impression that your store might only be a temporary thing and so will “snap up” any products sooner rather than later.
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