"The margin in this business is one of the highest: from 150% in the regions, and from 200% in the capital's cities." Anton Krasilnikov, director of Casanova®69, shares his experience in managing an adult store.- Anton, tell us what your company is doing?
- The National Company Casanova® 69 has been operating on the Russian market for 19 years. The company's mission is to strengthen and develop the institution of family and marriage; developing sexual culture and caring for human health. We are official exclusive representatives of the company “Orion” (Germany), “Tenga” (Japan) in the Russian Federation. Our stores operate in the Health Store format. NK Casanova 69 is actively engaged in social activities.
Wholesale offices offer various forms of cooperation: delivery of goods to existing stores for adults; opening your own adult store; opening of an erotic lingerie store; franchising; cooperation for representatives of the pharmaceutical business, as well as an additional assortment for various businesses.
- Many people think about starting their own business, but not all of them eventually open it. What can you recommend and how to help beginners?
- An adult store, like any business, is a risk. As the saying goes, "who does not take risks, he does not drink champagne." For more than 5 years, the author’s client support program has been introduced specifically for our partners, starting from the first contact. In our work and for everyone, we apply the leading Russian and world experience in business development.
- What difficulties can entrepreneurs facing when opening a store for adults encounter in the initial stages of doing business?
- As a rule, this is an administrative barrier. Unfortunately, the sexual revolution did not occur in all regions of our capital and the country as a whole. Nevertheless, a competent approach to business, elaboration of its mission and social aspect, and most importantly compliance with these principles in work, significantly reduce certain difficulties.
- According to your estimates, what is the minimum amount with which you can open an adult store today? What are the main items of expenditure.
- To start, you need to have about 600, 000 rubles. Depending on the region, this amount may vary. For example, for the Far East - the amount may be larger due to the long delivery, i.e. Initially, inventory must be foreseen. The costs are approximately the following: rent; equipment: from 50 thousand rubles. and higher, goods for a retail area of 20 m2 - about 250-300 thousand rubles, advertising costs, overhead.
- Are there any special requirements for a storeroom for adults? How does its location affect business performance?
- Recommended area from 20 to 40 square meters. meters, preferably a passage, a shopping center option is also possible. It is necessary to observe 300-500 meters from churches and schools. The location may also be in a residential area - in this case, the format of the store, the quality of service and advertising play a big role. Agree that we are ready to go a little further than usual if we know that there is quality service, nice staff, a beautiful, clean store and, of course, quality goods.
- What features should be considered when forming the assortment of a store for adults?
- Throughout the path of our cooperation, we give recommendations on the formation of the range. It is important to understand that most of the goods in the store for adults serve to prevent and prevent physiological and psychological diseases, and of course for pleasure. It is necessary to present the goods at affordable prices, and at prices above average. When forming the assortment, the city, population, wealth, main activity, etc. are taken into account. In the first 2-3 months, the assortment of the adult store is polished to the optimum for a specific city.
- What can you save on and what should you save on?
- In my opinion, there are two main points.
For some reason, entrepreneurs often save on advertising, arguing that their store already knows everything. Everyone can know - and come and buy only by invitation. Advertising is the engine of trade, and no one has canceled this rule, it is needed, moreover, on a regular basis and with monitoring of its effectiveness. The budget is approximately 5-10% of the turnover.
Products from the price category are above average and expensive. Often a stereotype is triggered: they won’t buy expensive, and often sellers “try on a blanket for themselves, ” and who said that it’s expensive for a buyer? People spend large sums of money on restaurants, clothes, medicines, toys, etc. Expensive - means quality. A person uses intimate goods for a very personal purpose: prevention, recovery, or even as prescribed by a doctor.
- What can you say about the need for online commerce. How much does trading through online resources bring you compared to offline stores?
- When they ask me this question, I usually recommend starting with an offline store and that's why. Firstly, this is a real business. Secondly, work happens with real people. Much more tools in the development, increase sales and margins.
In the case of an online store, entrepreneurs often dump - this is one of the most popular tools, moreover, of the old school. Of course, you can not have an office, warehouse, staff - this can significantly reduce the initial capital. But, in order to start a high-quality Internet business, investments will be similar to those for opening a real store.
- How long does the initial investment in an adult store pay off?
- The statistics is that an adult store reaches a breakeven point in the first three months. Initial investments begin to return from around 12 months.
- Does seasonality exist in your business? How do you solve the problem of low seasons
- Seasonality is, it becomes relevant after a year of fruitful work of the store. Traditionally, the peak of sales falls on the New Year period. In January, there was a decrease in sales, although the last two years, January sales are going well. Then comes a series of holidays on February 14, 23, and March 8. In May, sales are among the lowest in weather, the rise starts from June-July and then on increasing.
In order to successfully trade, you need advertising. I will give an analogy with the institute: the new year is a session, an indicator of work for the year. The rest of the holidays are control. What goes around comes around.
- What employees does your company staff consist of? What payment scheme do you practice?
- The seller is 90% of successful sales and development. We recommend hiring those who want to sell and work in this area. Medical education is desirable. The seller is a broad-based specialist who not only sells goods, but also advises buyers, who often share very personal problems with him - and you need to correctly convey information. Merchants - make families strong, people happy and healthy.
For a person to be motivated to work at 100%, develop a business and develop himself, an entrepreneur needs a business mission, in other words, why he began to engage in this business, why the buyer will buy from him, and the staff will be happy to work.
The financial aspect of motivation: salary + percentage of personal sales + percentage of total. We independently train sellers and our partners: knowledge is passed from generation to generation, constantly improving.
- What can you say about customers, what is their typical portrait? What is the ratio of men and women today?
- This is a man who cares about his health, about his soul mate, walking at the pace of modern rhythms of life. These are couples, single people with disabilities of different ages and affluence. Target audience 18 and older. It happens that people with a referral from a doctor come to an adult store to purchase a particular massager - for the treatment and / or prevention of gynecological, urological diseases, sexual dysfunctions.
- What can you say about profitability in this business?
- The margin in the adult store is one of the highest: from 150% in the regions, and from 200% in the capital cities.
- What can you say about competition in this business? Rate it on a 10-point scale?
- The market for adult goods is growing, and is now entering a new qualitative level. In my opinion, 3-4 points for offline stores.
- How do you see the prospects for the further development of your business?
- Today we offer the opening of a store for adults in various formats, the opening of a store of erotic lingerie, the option of island trading, as well as additional services for other business areas: pharmacies, federal chain stores, convenience stores at gas stations. We also prepared and opened a special franchise offer under our brand in the format of the Health Store.
- Based on your experience, what would you advise to those who are just planning to open a store for adults?
- Start your own business! It is interesting and exciting. The main thing is to love what you do, to enjoy it and to benefit others.