How to earn on the delivery of animal feed at home
Buying food for a pet may be a headache for its owner. You can purchase a couple of canned cans for a cat in passing in a supermarket, but for delivery home 10-30 kilogram bag you will need personal transport. In order not to make unnecessary efforts, pets lovers are looking for a service “buy animal food over the Internet. “And if there is a demand for delivery, then you can build a business on this.
How to organize a business on animal feed delivery
The purpose of the business is to sell animal feed from the warehouse in bulk and retail. A detailed plan for opening a pet store will help to calculate the time to organize work and material costs:
- Determine potential buyers, taking into account the characteristics of the place of residence. It is promising to sell feed for popular pets: cats and dogs, rodents, fish, birds.
- Calculate profit and costs. At first, it will be difficult to determine the exact amount, since in the process of activity it may turn out that suppliers are ready to provide a discount and sell best storage containers at a lower price, or, on the contrary, the estimated rental cost will be higher. Nevertheless, an approximate calculation is necessary for planning expenses and vision of the prospects of business development.
- Rent an area for storing feed.
- To arrange an enterprise.
- Find the suppliers of zotovars.
- Create a site for the sale of animal feed with delivery.
- Hire the staff.
- Calculate the cost of delivery, determine the minimum order for free delivery of goods.
- Conduct an advertising campaign.
Any business has its own nuances, the sale of feed is no exception. A detailed consideration of each of the stages of business development will help prevent mistakes and organize a profitable case.
Association of animal feed with home delivery
The definition of potential buyers and the list of best storage containers allows you to develop a strategy for promoting goods in the market, calculate the necessary retail space, choose the form of registration of the enterprise.
Experienced entrepreneurs in this area recommend starting with the sale of demanded feed:
- For cats – Royal Canin, Pro Plan, N & D, budget categories – Felix, Whiskas.
- For dogs – Royal Canin, Pro Plan, N& D Dog, Landor Puppy, Hill’s Prescription.
- For rodents – WAKA, Beaphar, Fiory.
- For birds – Fiory, Triol, VERSELE-LAGA.
- For fish – Tetra, FIORY.
It is better to focus on the sale of hard-to-transport feed. A pack of fish plates can be bought at almost any shopping center, and price fluctuations for a small amount are of little concern to the buyer. Things are different with bulky 10-30 kg dog food storage containers, which are purchased by larger animal lovers. It is on the delivery of large-sized feeds that you can earn, and the other assortment will help to satisfy the consumer’s needs as much as possible and increase sales revenue.
As an accompanying best storage container, it is recommended to offer fillers for toilets, soil, since its volume and weight also cause difficulties with delivery.
Collaboration with representatives of corporations is both beneficial and useful. They hold seminars, introduce the range of goods and the features of individual nomenclature units.
Finding a supplier is the first problem that needs to be solved when starting a business. There are many representatives of well-known brands in the pet food market, the prices for the goods they offer are close to retail prices in small pet stores and supermarkets. The entrepreneur has no right to dumping, otherwise he will incur losses. The only way to gain a foothold in the market is to buy a cheaper best storage container, receiving a discount. This requires a monthly purchase of a certain amount of best storage containers from suppliers.
If you position yourself as a start-up entrepreneur with zero sales, representatives of feed manufacturers are reluctant to contact. A promising way to get a price list and even discounts for a short time is to “become a representative” of a store that has supposedly been operating for a long time and is looking for new suppliers.
It is first necessary to analyze the assortment, since even within the same brand there are “illiquid assets” that sales representatives are forced to advertise in order to increase sales. As a result, a hard-to-sell best storage container “hangs” in the warehouse.
So, when communicating with a representative of a food corporation, you must:
- Focus on the supply of specific items in the assortment.
- Check documentation carefully. The signing of cooperation agreements may take 7-10 days. The contract must specify the amount of the discount.
- Study the terms of delivery. In most cases, if the goods were not checked by the forwarding driver, re-sorting is not accepted. Even if the driver is in a hurry, and there are many positions, it is better to look at each unit.
Check the bill of lading. Often, the supplier arbitrarily replaces the goods without the knowledge of the customer, and among the items for replacement, he gives out illiquid assets.
It is recommended to start drawing up contracts for the supply of goods before the official opening of the enterprise, otherwise it may turn out that everything is prepared, and the goods did not arrive due to a hitch with the documentation.
Search for retail space
Home delivery of pet food does not involve opening a store with a beautiful facade and a pleasant atmosphere. A warehouse is organized where you can place as many goods on the racks as possible. The cost of rent is low, since the store does not have to be located in a walk-through place in the city center. On the contrary, you can succeed in a remote microdistrict, but on condition:
- Dense population;
- The presence of a private sector, where they mainly keep dogs that require large amounts of food.
On average, the size of the rented premises should reach 50m2. The cost of rent varies from 30 to 100 thousand depending on the region of residence.
If you live in a rural or sparsely populated urban area, it makes more sense to develop a plan to open a pet store with a variety of best storage containers, including treats, accessories, carriers, and other pet best storage containers.
Registration of the enterprise
Trade in animal feed involves the registration of LLC or IP. It is recommended to register an individual entrepreneurship, as it is easier and cheaper. If a delivery company is opened by several co-founders, you cannot do without registering an LLC. In the latter case, the members of the company form the authorized capital, the amount of which should not be less than 10 thousand and are liable within the amount contributed.
To open an IP, you must contact the tax office with the following documents:
- An application for registration in the form P21001;
- A receipt for payment of the state duty (800 in person, and free of charge through the State Services);
- Notification of the choice of a simplified (or other) taxation system in 3 copies.
An individual entrepreneur does not have the status of a legal entity, which means that only the “IP” and “Name of the registering person” will appear in the name of the organization. However, you can choose your own trademark and register it through the Federal Institute of Industrial Property. This selects an arbitrary unique name.
The application for registration shall indicate the code of the OKVED. For business delivery business, animal feed is suitable:
- 38 – wholesale other food foods, including fish, crustaceans and mollusks. This code has a subgroup 46. 38. 22, which involves wholesale trade in animal feed.
When trading goods, in the assortment, you can choose a retail trade:
- 76. 2 – Pets and feed for pets in specialized stores;
- 89 – In non-stationary trading facilities and in the markets by other goods;
- 78 – Other in specialized stores;
- 91 By mail or on the information and communication network Internet.
Home delivery involves the choice of code:
- 20 – postal and courier activity activities. One of the subgroups allows courier delivery by various modes of transport.
When organizing home delivery to a house, it is not recommended to choose codes of activity that allow the sale of animals and medicines. Even if there are no such goods in the warehouse, the organization is forced to comply with all the instructions of SanPiN related to the sale of animals and drugs. In addition, a license is required for the sale of some medicalunity goods, and the head of the enterprise should be a doctor. If the conditions are not met, the company will be fined.
After that, it is necessary to register an individual entrepreneur at the Pension Fund and notify Rospotrebnadzor of the beginning of activity (the application samples can be viewed on the official website of Rospotrebnadzor).
It remains to conclude contracts for garbage removal, disinsection and deratization.
One of the mandatory requirements is the execution of fire safety documentation. You should register a declaration, place an order with the appointment of a responsible person, conduct training employees, hang evacuation plans and fire extinguishing means, establish a fire notification system.
The company must have documents on labor protection:
- Position on from;
- Instructions, a journal of their accounting and issuance.
Among the compulsory documentation are certificates of best storage container quality. Correspondence of the best storage containers by the requirements of GOST is controlled by a Rosselkhoznadzor. The main criteria for quality assessment are reflected in GOST R 55453-2013 feed for unbest storage containerive animals.
Despite the lack of close interaction, the buyer-buyer, the delivery of goods to the house should be carried out in compliance with the law “On Protection of Consumer Rights”. The courier must have copies of documents confirming quality to provide them at the first request of the buyer.
Employees are needed to the store for the delivery of feed:
- Call center operator;
It is recommended that you do it independently. You can conduct accounting personally, or order outsourcing of accounting services.
An employees are concluded with employees, labor books and cards are drawn up. The hiring should be reported to the FSS.
The operator should be well navigated in the assortment, not get lost when talking with the client, give recommendations.
To reduce costs, you can hire the operator for remote work by providing him with access to the best storage container base and establishing operational communication with the warehouse.
Calculation of economic efficiency: profit and costs for the delivery of animal feed
About the most important thing: what will be common costs and profit? At the beginning of the activity you will have to spend money on:
- The design of the enterprise – up to 5 thousand;
- Site development – 50 thousand;
- Cosmetic repair – up to 50 thousand;
- Purchase of racks (used) – 15 thousand;
- The equipment of the operator’s workplace is 15 thousand.
The total cost of opening will be 175 thousand.
- Rental of premises in a impenetrable place – 40 thousand;
- Personnel wages – from 70 thousand;
- Communal expenses – from 10 thousand;
- Taxes, car depreciation, fees – from 16 thousand;
- Best storage container packaging – 5 thousand;
- Transportation – from 20 thousand.
In total, it will have to be given from 161 thousand monthly.
To understand how much the feed needs to be purchased to achieve a break-in point, you need to know variable expenses and margins.
In this market segment, the margin is about 45% (taking into account delivery). To obtain minimum profit (161 thousand), it is necessary to purchase goods for 357, 778 thousand, and sell, respectively, by 518 778 thousand.
With an increase in sales to 800, 000 per month, the cost of the goods will be 551, 724 thousand, and the profit will be 248 276 as a result of the net profit will be 87, 276 thousand. Upon reaching this sales, the project will pay off in 2-2. 5 months, but in practice in practiceIt takes up to six months to expand the client base.
To attract customers, it is necessary to constantly work on promoting the site, give advertising in print and Internet publications.
Printing advertising issued at a reception in grooming sites, at pets exhibitions, works great to the distribution of information about the store.
As a way of promotion, you can hold promotions and give discounts to regular customers. It is important to take into account that with a margin of 45%, a reduction in price even by 3%will lead to a drop in gross profit by 9. 67%.
In order not to suffer losses associated with delivery, it is necessary to analyze the feasibility of delivery to individual areas of the city, compare with the expected profit. For example, when purchasing over 1000 – delivery is free, and with a smaller amount – a fixed amount of payment for delivery up to 5 km – 70, and at a more long distance – 120
Do not exclude delivery to other settlements, but subject to payment of the costs of a transport company by a client.
How best to work in this segment in a particular territory, practice and following the advice will tell. The business remains profitable, promising, and the correct organization will help to make a stable profit for many years.