Electric Store or Home appliances Store

Dear All,

My brother is interested to open Electric Store , where he will sell all the Electric wiring, energy savers and all others electric components used in house.

OR second option is he wanna open a store of Home appliances like TV, Fridge, AC etc.

Before investment I would like to know the below things .

01) How much investment we need.

02) If anyone can guide us the profit ratio that would really be great.

03) Type of Brands he should consider for good profit ratio

04) Any other feasibility before opening the shop.

Basically he has done M.Sc electronics, he is trying for job in last 2 to 3 years but he hasn't have any reasonable job, he had two times internship in ufone and warid telecom and after internship they are not considering for job.

Finally me and my brother has decided to open a business for him.

Any other business like CAR workshop and anyother idea would be great as well. We are in research phase at the moment and your input would highly be appreciated.

Regards,

Siddique

1 - Electric store is a long duty hour job and profit margins are high but actual money is low. since components are cheap so even high margin would mean 5-7rs per item.. so need to sell 1000s for making some amount

they are much cheaper to setup though, and your items wont go out of date and are still selling even after staying in shop fr many years. they dont age as bad as other stuff.

2 - home appliance store is much easy to setup and manage,. companies will send you stock and you will sell.. profit margins are low on big brands and higher on smaller local brands.. even at low profit margin the actual money is high since appliances are costly items ranging between 500-10000 per item. but they are very very costly to setup, lots of investment, need 3-4 boys for lifting stuff all day and a skilled polite knowledgeable staff to explain details to buyers. problem is appliances go out of date with time very quickly as new models keep coming out and old items wont sell. companies have limited take back policy and sometime loss on items is comon.

3 - Local brands have higher profit margin. big brand names have lowest margin. you have to keep a mix of both since the choice of customer is never ever predictable.

4 - since he is in electronics, a repair shop of appliances or mobiles would be in his alley.. easy work, decent income and can associate with future mobile shop of his own.. sales and repair guy same person is rare.. majority shops are dumb ass idiot owner,and a rented area in shop to a repair guy. a person capable of both would be able to satisfy his customers a lot easier due to his technical knowledge and since he can repair himself, all his sets would be guaranteed working.. which is a blessing..

this is actually a genius idea that just came to me while writing.. :)

5 - Car workshop would not be his expertise unless he will be specific to AC and the electronic Computer board of modern honda and toyotas. then he could make a name for himself being specific to that. but that is upto his own temperament.

Dear Farhan

Thank you very much for your detailed reply.

He is totally free now days.

I have given him few options.

01) To move to AUS and try to get a degree to settled there - After lot of efforts and encouragment, he is not interested to go there.

02) Offered him to come to UK , requested him to go for IELTS, he has attended classes for 2 weeks and then he emailed me that he is not interested to go abroad at all.

03) Then he said he need some money and he is interested for Electric store with all items with you mentioned in your reply (Local + branded).

I have given me roughly 15 to 30 days to think about it properly because his age is roughly 26 and he said you are in the age that we experience and play with different business, whatever is in your mind , discuss with different people, give me good reasons of success , not the reason to have failure.

Your idea is too good for mobile repaire.

We are working on few things ,

Same like Electric Store

Home appliances

Auto - Workshop

and now a mobile shop as well.

After your reply I'm going to skip home appliances thing, yes we need a lot of money and more skilled people in there.

Also I understand Electric store and any such type of business is full type job and he need to workhard, but the thing is this is his own choice, he is not willing to have a job, he is saying there are no jobs in the market, he is not willing to go abroad - i don't know why !

so if he is interested for this Jail for whole life but this is his own choice :-(

Thank you for your input.

More inputs are welcome please!

Siddique

Hopefully he makes a good decision which improves you whole family situation..

Thanks very much Farhan. I appreciate that you have written a detailed email for us.