rmm43 english - Runcit Media

RMM43
ENGLISH
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RMM43
TINJAUAN RUNCIT
MOVING FORWARD TO A GOOD 2016
We have come to the end of 2015. Looking back, we saw how the
GST was finally implemented on 1 April. As expected, many
consumers reacted by spending cautiously. Later in the year, the
economy also faced some challenges.
So in this issue, we talk about how retailers can succeed even in
uncertain times. No matter the situation, there are always
opportunities to consolidate and improve one’s business. Over in
‘Motivasi’, we share with you a few tips on how to stay confident
when times are challenging. Next, we travel to Sungai Siput to
speak to a retailer who faced his competition head on. What’s
interesting in Sungai Siput? Turn to ‘Jalan-jalan Runcit’ to find out.
Of course, 2015 was also our 10th anniversary. Yes, we have been
bringing tips, stories and news to you for 10 years! On that note, we
look forward to bringing you more from Runcit Malaysia and would
like to wish you a happy 2016!
EDITORIAL TEAM
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RENCANA RUNCIT
THRIVING IN UNCERTAIN TIMES
In times of uncertainty, take the
opportunity to make positive shifts that
will benefit your business later.
2015 has been an interesting year for many businesses. There was the
implementation of the GST, a regional economic slowdown, and our
Ringgit’s value fell against the US dollar. As a result, the cost of imports
may rise and many foresee the retail sector react with price increases.
When this happens, we can expect consumers to become cautious with
their spending.
Nevertheless, our businesses must go on. While 2016 may pave for an
uncertain road ahead, there are opportunities you can take to cope with a
slower economy and position your business for future success. Here are
7 useful tips:
1. Manage your cash flow
Cash is important in times like these. You need cash to keep your business going as
you have suppliers, employees and overheads to pay. It is wise to cut your expenses
and spend your cash wisely (see tip no 2). You can maximise your suppliers’ payment
terms and pay them on time. Conversely, reduce giving credit to your shoppers.
Defer your expansion plans provided you can manage cash flow and do not overly
depend on business loans. Any expansion plans should be considered carefully
against calculated risks.
2. Use your capital wisely
Spend your cash in hand wisely. Your biggest capital outlay is most likely stock. Buy
from reputable sources that can offer the best terms and the right prices (avoiding
counterfeit and contraband products). Hunt for bargains and always be on the look
out for special offers by reputable brands.
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RENCANA RUNCIT
3. Observe your consumers’ purchases
When consumers are cautious, they will prioritise their
spending on essential items such as food, household
necessities and personal care products. Review not only
the range of SKUs that you carry but also the pack sizes.
For example, did you know that in uncertain times,
parents tend to buy smaller packs of growing up milk
powder rather than larger packs? This is because they
don’t want to outlay so much cash.
4. Rationalise your stocks and categories
Do not be tempted by long credit terms and overstock unnecessarily. What if the
stocks cannot move? Take this opportunity to review your payment terms with
suppliers. Negotiate with them for better service levels so that you can buy more
often but in smaller quantities and with shorter payment terms. This way, you are
more flexible to react when shoppers switch brands or pack sizes.
Also, stock items
suitable for the general
trade rather than items
tailored for the modern
trade. For example, go
for refill packs. You
don’t want to end up
with slow-moving
stocks. You want stocks
that have a faster
turnover. Also, look for
brands who run
advertising and
promotions for you.
5. Strengthen relationships with existing customers
Do your best to keep your customers happy. Add value to your services like offering
home delivery, taking orders and informing them when new stocks have arrived.
Stay in touch – by phone, SMS announcements, flyers or email. Reach out to them
through other means, eg social media such as Facebook (see RMM42, page 10). You
want your customers to continue buying from you.
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RENCANA RUNCIT
6. Improve your productivity
Get more from your employees and
existing assets. Look for ways to do
things better and faster. There is always
room for improvement. If you have a
new system, take this opportunity to
learn and use it fully. It may be able to
give you reports on fast moving or
unprofitable stocks.
7. Put your extra cash in the bank
During uncertain times, many small businesses tend to withdraw funds from banks
as they need the cash. To counter this, many banks will offer small-to-medium
businesses attractive incentives to deposit funds into their banks. If you have the
extra cash, take advantage of these incentives and invest in fixed deposits, Amanah
Saham or mutual
funds that offer good
interest rates. Earn
short term interest
rather than letting
your cash stay idle.
Remember, that every uncertain or slow period is only part of an economic cycle.
While we may be going through a slowing retail landscape, do not turn a blind eye
to opportunities to sustain or thrive. Finally, do not let too much ‘negative talk’
bother you. Stay positive and focussed (see pg 6, Motivasi) and ride through these
challenging times with success.
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PERUNCIT PRAKTIKAL MOTIVASI
3 WAYS TO STAY CONFIDENT IN
UNCERTAIN TIMES
As we go through an uncertain
economic period, our friends, peers
and customers tend to share with us
their challenges. “Sales are slow”,
“costs are high” and so on. But let’s
face it, we are all human. People just
want to vent their problems on a good
listener.
However, being constantly reminded
about uncertain times isn’t helping. It
becomes “noise” and hearing too
much of it can get you down also.
Successful people know how to turn
this “noise” into “music”. They know
how to stay powerful and confident
when times are tough. Here are 3 tips:
1. Stay Rationally Optimistic
Sometimes, being miserable is a bad habit. If you feel this way, it’s time you
change. When we stay positive, our minds perform better. We become
more creative, productive and confident. When our minds are happy, we
can plan a rational solution for many problems.
2. Define Your Plans
You may have a goal. But during these uncertain times, you need several
plans to reach your goal. It may be to cut costs, to spend wisely, or even to
look for opportunities. You may feel anxious – what if a plan fails? Hence,
having a few plans instead of one can give you the confidence that you’ve
mapped out other paths to reach your goal.
3. Do Your Best – Don’t Stress The Rest
Do your best when things are under your responsibility but let go of the
things you cannot control. Why stress over something that is beyond your
control? When you are stressed, you will create that unpleasant “noise” and
people around you will also feel stressed.
Finally, think back. Has something ever looked “bad” at the time but turn out good in
the end? The answer is “yes” for many of us. So stay positive and confident.
Challenging times are just a cycle.
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PERUNCIT PRAKTIKAL OPERASI
Is A Card Terminal Right For You?
Credit and debit cards are increasingly being offered in many retail
outlets today. Clearly, more and more retailers are beginning to see
their advantages. If you have any doubts, consider the following before
brushing off the idea:
•
Convenience for
you and your
shoppers
•
•
•
Not as expensive
as you think
Let the bank
handle the
processing, you
focus on the
businesses
•
•
•
Credit and debit cards open up the idea of buying
more to your shoppers. Your shoppers are not limited
to buy with only the amount of cash in their wallet.
Paying with just a card is something many shoppers
prefer. It’s all about convenience.
With card terminals, you will also have better record
keeping of your sales, especially with GST.
Search for best package from the banks. Some have a
minimal fee for setup or none at all.
The bank will only deduct between 1%-2% per value
of the transaction. Note however, that there is a
monthly rental fee for the terminal but this can be
negotiated based on your turnover.
Your cash will be transferred to your bank account a
day after you reconcile your transactions. This can
reduce your trips to the bank.
Studies found that the cost of handling cash is 3% of
your sales. With less cash handling, you don’t have to
worry about these costs such as robbery or pilferage.
Ultimately, most major retail stores already have card terminals. It saves them
closing time and cash handling worries. To keep up with the competition, you
should think about providing this facility to your shoppers today.
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KATEGORI RUNCIT
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TEKNOLOGI RUNCIT
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WIRA RUNCIT
FACING THE
COMPETITION
Mr Yap Mow Chai runs
Pasaraya Jimat Sg Siput,
a kedai runcit that
opened over two years
ago in the quiet and
charming town of
Sungai Siput, Perak.
Interestingly, a big hypermarket is located opposite his shop and has
been operating long before Mr Yap opened his shop there. We asked
Mr Yap why he decided to open his shop so close to a competitor and
how he managed to succeed.
Why did you decide to open Pasaraya Jimat Sg
Siput so close to a hypermarket?
Initially I was running Kedai Chop Swee Hin
Chan, which I inherited from my father over 30
years ago. I expanded that shop and when
business grew, I then opened Pasaraya Jimat Sg
Siput. I picked that location despite being
opposite to a competitor because I believe it is a
good area and I was offered a good price. I’m not
concern as customers from my first shop also go
to Pasaraya Jimat Sg Siput to shop.
How did you face the competition?
I surveyed the other shops to compare prices and see what they sell. Pricing is a very
important factor, that’s why we sell at very low prices and have attractive promotions all
the time. Our customers always compare prices before buying. We also provide a range
of items and popular brands so our customers can get
everything they need here. Besides that, we also do
wholesale for nearby businesses like restaurants.
This shop is big, occupying 4 shop lots. How do you
manage this and your other shop?
I look after Chop Swee Hin Chan with my wife while my
brother takes care of Pasaraya Jimat Sg Siput. Initially it was
difficult to manage because I couldn’t find good workers.
Eventually, we found a few and trained them well which
made business easier. It is also important to modernise by
having a POS system for payment and stock keeping which
makes business operation more efficient.
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JALAN-JALAN RUNCIT
Lion’s Hill
As you might have guessed, the town of Sungai Siput got its name long ago when a
huge number of snails were found in a nearby river. If you happen to visit this town,
don’t miss the following attractions:
Lion’s Hill
According to locals, this hill resembled a lion’s head long ago, hence its name.
Today, it is a popular spot among hikers who are up for a challenging trek. The lush
greenery around the hill is sure to calm any visitor.
Menglembu ‘Fisherman’ Groundnuts
This groundnut brand is produced by one of
the oldest factories in Sungai Siput. If you’re
keen on groundnuts as souvenirs, be sure to
drop by the Mee Hiong Yuen groundnut
factory near the Jamek mosque.
Mahatma Ghandi Kalasalai Tamil School
With over 1,000 students, this Tamil school is one of the largest in Perak.
Interestingly, this school was built on donations contributed by teachers, plantation
workers and residents of Sungai Siput, all of whom donated about a day’s wages for
the school.
Did you know?
Menglembu groundnuts were believed have been
brought into Malaysia by early traders from China. The
first crops were planted in the town of Menglembu,
Perak. So, these famous groundnuts have got nothing
to do with cows (lembu)!
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KATEGORI RUNCIT
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CAKAP-CAKAP RUNCIT
DIFFERENT TYPES OF KUIH-MUIH
To fulfill the request of customers, I started to
sell kuih-muih a few years ago. At first, I only
sold a few types of kuih-muih but with the
increasing demand from my customers, I
now sell a variety of kuih-muih which meets
the expectations of my regular and even new
customers.
Mohd Bakhori Hassan
MBH Jaya Enterprise
Machang, Kelantan
FS: Zulkifli
BILL PAYMENT SERVICES
In a retail business that is getting more
challenging, I began to offer additional
services like handphone ‘top-ups’, bill
payments, ‘touch n go’ reloads and Astro bill
payment. Besides that, my retail merchandise
can also profit from these new services.
Zainul Abidin
Pasar Mini N & Z
Bangi, Selangor
FS: Sim Keng Lee
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CAKAP-CAKAP RUNCIT
SPECIAL LAKSA SARAWAK
I introduced a new product which is Laksa
Sarawak paste to attract customers. It then
became my shop’s specialty and a shopping
place for customers from Sarawak. It has also
attracted food stall operators and with that, I
get to promote the tastiness of Laksa Sarawak.
Grace Pijah
Gracefidel Multistore
Cheras, Selangor
FS: David Teh
24 HOURS CONVINIENCE
For my customers’ convenience, I open my
shop 24 hours a day. My shop is also airconditioned and I have low gondola shelves
for children’s accessibility as there are many
schools nearby. This will provide comfort to
the customers who visit my shop.
Kumar
Hajris Retail Sdn Bhd
Cheras, Kuala Lumpur
FS: Sim Keng Lee
ATM SERVICE
I installed an ATM at my shop which is located
in a tourist area for the convenience of tourists
and also the locals. With this machine, my
revenue increased in a short time. I also
installed a complete CCTV system to ensure
the safety of my customers.
Lim Teng Hoo
Chulia Twenty Four Seven Mart
Georgetown, Pulau Pinang
FS: Kek Soo Guan
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