So what kind of profit should you expect? Let’s first define the markup. When you buy sports drinks from distributors or directly from a foreign manufacturer, you can make a markup of 40-60%. This is quite good.
If you live in a small town where there is little or no competition, you will have customers quickly. In large cities the situation with competition is more complicated, but even in the capitals the attendance will be good, especially if you are located near a fitness club.
Any medium-level fitness center has a mini-bar that sells protein shakes, creatine bars and other “light” supplements. If you are able to negotiate the supply of your goods to the fitness clubs – great, you can safely make a markup of 100-130%.
However, the ability to make a big markup does not guarantee success. If you do not make a good turnover, the business will not bring much income. It should be borne in mind that sports nutrition stores survive on account of loyal customers, so you will have to constantly monitor the range and quality of supplements sold.
Of course, it is impossible to give exact numbers, but on average the profitability of such outlets is 20%. Payback period for the store is from six months to two years. Making a good business plan and opening a sports nutrition store, you can get a decent profit – it’s a fact. But super profits will not be – this is also a fact.
Analyzing the market for sports nutrition is simple enough. First, you need to determine the level of competition in your city. To do this you can use Google Maps or similar resource, which shows the location of outlets and organizations for the relevant search query. Evaluate: how many sports nutrition stores there are in your city, in which areas they are concentrated and where there are good locations for the new location.
Secondly, you should visit potential customers to assess the range, look at the existing business in the area in which you want to work. What criteria should be considered:
the location of the store;
proximity to gyms, studios, etc.;
the range of products: brands and suppliers, variety and quantity of goods;
the price range of the goods on display;
the approximate number of customers;
effectiveness of advertising;
availability of discounts, promotions, bonuses, etc.
Thirdly, analysis of the data and conclusions. Which stores are more successful and why? What are the advantages and disadvantages? How is the scheme of trade arranged?
Thanks to this you will be able to form your own business model, focusing on strong factors and taking into account the mistakes of competitors.