This is explained by the technological change that with the Internet and digital processing causes the decline of paper exchanges. Added to this are the difficulties related to the tense economic environment that encourages households to limit their purchases of stationery. Finally, the competition from supermarkets, be they food or specialized, is very lively. These with their diversified and multicultural offer associated with stationery products, attract more and more consumers. This concept, which renews the traditional stationery market, is particularly promising. Because of this competition, the margins of the sector are very modest. If they are offset by the high volumes of sales at supermarkets, this is not the case for traditional paper mills whose customers are limited. As a result, the profitability of this activity for independent professionals is more uncertain. In this risky context, independent papermakers have difficulty maintaining their market share. They try to organize themselves by joining networks or groups that allow them to obtain more competitive buying conditions. They also try to differentiate themselves by adopting a position of specialist, proposing in particular very specific ranges of products.
Open a stationery: the constraints
No training is required to access this sector. However because of the difficulty of the market, it is recommended to master the rules of management of a shop.
Similarly, no specific rule concerns the opening of a stationery business. It is subject to the common law of the retail trade as well as the rules relative to the safety of the places receiving from the public. The professional is a trader. He must register in the register of businesses and companies.
Prices are free, but must be posted in accordance with regulations.
The management of a stationery
The independent professional must follow the evolution of his turnover. It must analyze it by product range in order to anticipate customer demand. Given the difficulties of the sector, it is important not to have to bear the additional costs of overstocking. For this, inventory management must be strict and stick as much as possible to sales. In stationery, the references are very numerous which complicates the supply. Breaks should be avoided because of the negative impact on customers. The rapid turnover of small supplies requires a management of the supply adapted to this type of articles.
The monitoring of professional customers is very different from that of individuals. If special conditions are granted to professional customers, these must not jeopardize profitability.
In any case the billing must be rigorous. The activity is marked by a strong seasonality. It’s back to school when sales peaks. For this, the professional must anticipate in order to succeed in his sales. In particular, he will make specific orders for the start of the school year, and if necessary plan to strengthen his teams to better manage the traditional influx of this period.
The highest expense item is purchases that can reach more than 60% of gross profit.
Rent is another significant burden, especially because of the quality of the locations.
Finally, staff costs are not negligible even for small structures.
To succeed, the professional must maintain a sufficient turnover. In order for his gross margin to be in line with the rate of return, he must obtain the best terms from his suppliers. And all the more so because the need to remain competitive forces to trim on the margins. To avoid indebtedness, the sector is asking for significant capital because of the heavy inventory and the high seasonality of the activity. For the same reasons, cash management must be rigorous.
Buying a business stationery: At what price?
The valuation of a business of stationery can be estimated between 55 and 120% of the annual turnover. The value depends on the quality of the site, the dilapidated development but also the expected profitability.
Get a business credit for a stationery
To succeed, the financially strong independent professional must join a network and diversify. He can sell press and bookstore for example.
Most creations are made by specialized supermarkets. The quality of the location is a paramount criterion. Start-up investments are limited to the development of the premises.
The constitution of the starting stock is also an important investment, which can not be financed by bank loan. The personal contribution of the partners must therefore be sufficient to acquire the stock and pay the acquisition costs of any business assets.