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written by | October 11, 2021

Strategies to Increase Kirana Store Business Profit

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Table of Content


The Kirana shop business in India is often considered to be a family business started by migrants from other states. They are a storehouse of almost every essential you require on an everyday basis. From food grains to milk, sugar, tea as well as bath products, cooking oil, and numerous other items, they have always been a one-stop-shop for your various requirements.

The changing economic scenario has introduced many qualified young entrepreneurs to start retail outlets on the same lines but with more sophisticated services. This has impacted the Kirana store margins to some extent though all is not lost. Several individuals prefer to go to their regular Kirana shops for various reasons. Some of these include the familiarity with the owners, the availability of credit, the home delivery service, and even the little friendly chatter. The friendly neighbourhood Kirana business can never go out of vogue. There are ways of increasing the Kirana store profit margin, and the requirements are simple and easy to follow even if the Kirana shop owners are not tech-savvy.

Did you know? 

India is home to more than 12 million Kirana stores!

Innovative Methods to Improve the Kirana Shop Business

Get Tech-Savvy

Most Kirana shop owners are migrants and are not savvy with English and technology, but they know how to operate a mobile. Technology has made the web available in so many different languages. Get a creative website made that clearly showcases the different categories of goods, prices, and availability. Hire the services of a street-smart college student who is in web designing. These students love to take up such projects as long as they get the credentials for it. Start offering special discounts on festive days like an early bird on New Year’s ever gets XYZ discounts or wins a product valued at XYZ. Reserve a section for customer reviews and feedback.

You can provide specific timings for online booking where the deliveries can be made immediately or the next day. If someone books a product at midnight, it would be difficult for you to deliver it. It is also very nominal to get an app made. This will make it easy for your customers to place orders while on the go. In the case of working professionals, they can place an order as they leave for home, and by the time they reach home, your delivery person can be at their doorstep. These services of convenience will increase your goodwill and make people confident about your timely and efficient services.

Also Real: Effective Steps To Start A Grocery Store In India With Lowest Investment

Social Media Platforms

If you can get a website made, nothing should stop you from creating social media handles. You may wonder why but this only enhances your presence and helps you to promote the kind of services you offer. Invite all your customers to your social media platforms. If you find someone’s birthday or wedding anniversary approaching, make it a point to greet them online. You can arrange for a small bouquet of flowers, a little gift and make it a point to deliver it to them, first thing in the morning. This works as a delightful surprise and is sure to cheer them. Create a weekly survey online to understand the needs of your customers. You can start stocking such products if you don’t have them. Once you do, you can inform everyone online. This also helps to accelerate the business positively.

Customer Engagement

As the proprietor of the Kirana store, you must develop soft skills and train your employees including the delivery personnel on how to address the customers. Try to address them with their family name as Mr or Mrs. Deshpande or D’cruz or Wani. It creates a sense of oneness and familiarity. Small courtesies like, Have a good day bring an instant smile to the face of every individual.

Special Offers and Gifts

Organise offline and online promotions on special days and festive occasions. You can reward the 1st person who places an order on, e.g., Diwali, Christmas, or Eid. Depending on the occasion, you can keep customised gifts ready for that individual or family.

Breakages and Returns

Make sure that the dealers who supply you goods are ready to take up damaged goods returned by your customers. This may not be a regular issue, but when it does occur, and you replace it with a new product, your customer gets assured of your genuine efforts of building and establishing a lasting relationship.

Also Read: How To Start A Dairy Business

Credit Offering

Offer a credit period on a weekly or monthly basis on the premise that if the payment is not made beyond the agreed date, the customer will be imposed with a certain amount of interest. This will increase your turnover and assure you of prompt payments. You will have to ensure that your bookkeeping is always in order so that you do not make any losses.

Keep an Eye on Competition

Visit the neighbouring stores or send one of your family members or friends to understand what they stock and what type of offers, if any, they make to their customers. You can always strategise and improve on the same to lure more customers.

Keep your Kirana store open over the weekends:

Weekends serve as holidays for most working professionals. That is the time they realise they need to make their weekly stock of purchases. If you keep your Kirana business open during the weekends, it will assure you of more business.

How to Start a Kirana Store?

Setting up a Kirana store is one of the most simple businesses. Following are some of the key factors to consider:

  • Research the locality to understand the demographics of the neighbourhood
  • Explore the existing competition
  • Get an insight into their strengths or weaknesses and draw a parallel with your own
  • Find out the most reliable sources of wholesale Kirana suppliers

Based on all the research and details, you can make an assessment of your finances and craft a good Kirana store business plan. You can then select an appropriate location to set up your Kirana business. Initial investments would require setting up an organised storage structure which will enable the visibility of your products. There is no mandatory registration. Registration comes to the fore only if your turnover exceeds the amount of ₹20 lakhs

Conclusion

The above details would have given you an insight into various methods by which you can enhance the earnings of your Kirana store. It also outlines the simple process of setting up a Kirana business. So, why are you waiting? Start your Kirana store and become the talk of the town! 

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Does an IT city like Bangalore have Kirana stores?

Ans:

Absolutely.The IT city of Bangalore has more than 28,000 Kirana stores.

Q: What are the approximate amount of revenues a Kirana store can earn in a month?

Ans:

A Kirana store yield a net income of at least ₹30,000 in a single month.

Q: Is the Kirana shop business profitable?

Ans:

Yes,there are more than 12 million such stores across India, and each one is profitable. A lot depends on the storage facility and the wide range of products of each store. These are the friendly stores of every neighbourhood where you are sure to find quality wheat as well as a quality shaving razor.

Q: Is GST registration a must for a Kirana business?

Ans:

No, however, GST registration becomes mandatory only when the Kirana store starts experiencing an annual business turnover of more than ₹20 lakhs.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.