Vignesh

We started the shop in 2009. By 2012, we had 13 shops- all mobile businesses. Then in 2013, there was online shopping like Amazon, Flipkart, and this business became very challenging to sustain. So, 60-70% of our sales moved online, which also reduced foot traffic in our physical shops. Consequently, we downsized, and now we have only three shops.

Before I started the shop, I worked as an engineer at Black Thunder. I was involved in hardware, video games, audio, and more. I completed my DEEE and worked as an engineer. Afterward, I had an idea to start my own business, so I opened a mobile shop in Tirupur, drawing inspiration from there, and eventually, I started this one. There are no business owners in my family.

When you are working for a company, the company will make a profit of 10 lakh because of your hard work, but the company won't give you a share in the profits. So, if we are doing our best, and it's our business; we will get the profit. We shouldn't waste our days. If we work for 10 years, we can plan our life for 10 years, but it's not like that for our business. We can make a profit in 1 year. So, I decided to start our own business and want to settle in life.

I was interested in electronics and music. I have been interested in TV, radio, and amplifiers since I was a kid. Now, even countries like China are assembling amplifiers. Now, everything is ready-made. So, the mobile field started to grow in 2007-08. The first brand I saw was Intex, and smartphones from their brand were very popular in Tamil Nadu. Samsung was next, but it wasn't Android; it was called Tizen. My friends suggested becoming a distributor of Intex. We thought of opening a mobile shop for retail sales. I became the super-stockist of Intex, Fly mobile, Kate Touch, and Lemon. We supplied to Erode and all districts. A super-stockist means I received the products and supplied them to a distributor, who then sold them to retailers and finally to customers. I thought that instead of doing this, we could open many branches and engage in direct counter sales to retail customers. So, I opened 13 shops, and it was going well.

Change in Business: In 2014, Amazon entered the market, and in 2015, Flipkart followed. With these two online giants, online shopping began to surge. When I compared the expenses and profits in retail, they were almost the same. Then I thought, why should I continue this? Why should I work 8-10 hours a day and employ labor? That's when we decided to close down. Now we run only 3 shops.

Starting the Business: If we invested 5 lakhs, we could get 15-20 lakhs worth of products on credit. Since the company was new to the market, they operated on a credit basis. They also assessed the shopkeeper's standing in the industry and how long they had been in the business. I had a friend named Albert Edwin, who is a prominent millionaire in Coimbatore. I received support based on his connections. He had a relative who was the head of Samsung distribution, and that's how I acquired the initial products. In 2012, we began investing our own money, and we had over 1.5 crores in the market. Across the 13 shops, I was making between 10 to 15 lakhs in profit from accessories alone annually. This doesn't even include other sources of income, such as servicing, smartphone sales, second-hand sales, SIM activation, MNP, downloads, and more. However, I have now sold all of these shops.

All the shops were strategically located in prime areas. If you opened a shop in city outskirts, you'd open the shop at 9 in the morning and stay there until evening, but only a few people would pass by. That's why I chose main areas. If you invest in the heart of the city, it makes a difference in business. When 100 people pass by your shop, 10 of them might come in. The key is to encounter many people to generate more income. So, I chose to open a shop in a prominent location, at the bus stop, at a major junction. It's important to be in a prime spot for business.

I learnt business-related strategies it on my own. We don't need to learn it from anywhere.

The primary reason why I eventually closed the shops was that I felt that the shops lacked a structured system. We dealt with a variety of accessories that had flexibility in pricing, because it's highly dependent on customer interaction. Without a structured system, I had to employ 40 people. While I was selling recharges and other items at higher rates, employees would offer them at lower prices because there was no system in place. Without an established system, when I sold a product for 40,000 rupees, employees might report selling it for only 20,000 rupees. I lacked a good system and effective management, and it felt like I was losing control. I couldn't accept that, which is why I shut everything down. Now, I've implemented CCTV for all three shops, and I've incorporated more technology, which is under my control. It's no longer a problem, and I'm doing well. You can learn a lot from this experience.

Right now, I'm in the retail business, where we focus on earning customers. The experience gained from this business is valuable if you wish to engage in similar ventures, but it may not be directly applicable to other types of businesses. I'm also involved in sawmill, centering board, and document rotation businesses, which are quite distinct from the mobile retail business.

I usually come to the shop around 9 to 9:30 am. I spend the first two hours checking stock and overseeing service arrangements. Around 11:30 am, business tends to slow down, and I may use that time to consider additional business ventures. I have various commitments to attend to outside the shop, so I'll leave for those. If I have any commitments, I typically complete them by 4 pm and then return to the shop after having lunch. I return to the shop around 5 pm when business starts picking up.

There's no specific challenge in business. If I focus on challenges, it won't be beneficial. Business is something that adapts to our needs. I run my business based on my financial requirements rather than setting fixed targets. I don't strive for a specific profit. I'm content whether I make 1,000 rupees or 1,00,000 rupees. I don't chase after targets, and I don't compare my business with others. I work diligently and have experienced the profits. In today's business, you can't set fixed goals because the market has evolved. The online market has disrupted the industry, reducing prices by 80% and often selling refurbished products instead of new ones. The market dynamics have changed, and it's no longer straightforward. You can't set a goal because the market is somewhat broken. That's why I'm exploring additional business opportunities and adapting to the market.

Customers of all types visit the shop. You can only understand the diversity of our customers when you step into the shop. In this area, we get inquiries for a variety of smartphones. Some people look for second-hand smartphones in the 7,000-8,000 price range. Others seek new smartphones priced around 10,000. Additionally, about 30% of our customers are willing to spend between 10,000 and 15,000. A significant portion of our customers includes construction workers, music enthusiasts, and gamers. They often inquire about smartphones in the 50% range.

They discover our shop through various means. We've been here for 12 years, so many people know about us through word of mouth. We've also listed our shop on online platforms like Justdial. When people search for "Vasanth Mobile" in Coimbatore on Google, they often find us. Justdial has helped too, with reviews like "best service" guiding potential customers to our shop. We pay a fee to Justdial to ensure our shop appears first in the search results. A customer without prior knowledge will often choose the shop with the best reviews, even if they have to pay a bit more. This accounts for about 10% of our online customers. We've built a strong reputation through excellent customer feedback, and our regular customers have also been a significant source of word-of-mouth referrals.

I've trained my employees to handle customer communication. After 11 am, I brief them about our stock and product quality. They know how to check the quality and handle customer complaints. They're knowledgeable about product usage and can explain this to customers effectively. They manage the customer interactions in my absence.

I've stopped hiring local people. I hire employees from my relatives and my village, and I trust them not to engage in any dishonest practices. This approach is working well for us.

I instruct my employees to record daily sales and profits. They note down what they've sold and the associated profits. They send these records to me through WhatsApp, and I review them regularly.

To turn a one-time customer into a regular one, I invest time in addressing their concerns. I aim to meet their business needs. When a customer has a complaint about a product they've purchased from elsewhere, it's an opportunity for us. I try to provide personalized attention and explanations. Some shops prefer not to honor warranties because if they replace items under warranty, customers are likely to return frequently for replacements. Instead, they encourage customers to buy new items. We, on the other hand, inform customers about warranties and provide replacements, which builds trust. Customers know that when they come to our shop, they can have their needs addressed, items changed or replaced, and this trust leads to repeat business.

The peak season for mobile sales is during Diwali. People receive bonuses during this time, and it's when mobile sales surge. In today's world, mobile phones have become an integral part of daily life. Almost everyone has a cell phone, and it's like an essential utility. People prioritize what they use most, and they want to update and upgrade their phones. A cell phone is a necessity for various activities, from entertainment to banking, so when people have extra money to spend, they often choose to invest it in a new cell phone during Diwali.

There are many customers, around 10%, who are challenging to satisfy because they lack a basic understanding of technology. Well, you see, many of these customers lack a fundamental understanding of technology. For example, if someone purchases a 2GB RAM mobile phone for 4,000rs, they might not realize that 2GB RAM is shared between the system and the installed apps. Over time, as they add more apps, the available memory decreases, causing the phone to slow down. We can explain this to someone with a tech-savvy background, but it's challenging to convey to those who are not tech-savvy. When they experience issues like the phone freezing or buttons not working, they often blame us. It's difficult to explain concepts like RAM, apps, and updating to someone who has no tech knowledge. For them, when they tap on WhatsApp, it should simply open. If they encounter an error message like "unfortunately Google Play Store has stopped," it means their RAM is full. At that point, they should clear the memory, but instead, they complain that the phone we sold them is faulty. We try to manage these situations, but it can be challenging. These individuals can cause problems for us. Doing business is about striving for happiness, meeting our basic needs, and surviving.

Customers desire a good product at a reasonable price. This is their primary requirement. However, they frequently base their decisions on budget constraints. In that sense, for this budget, there isn't a mobile that won't have some limitations. Mobiles with higher RAM tend to perform better, but completely eliminating the issue of hanging is challenging. You're inquiring about fulfilling their needs, and the answer is somewhat elusive. They can't be entirely satisfied. So, they should adapt and change.They might go through a lot of trouble in their quest to save a mere 2000rs on a mobile, believing that spending more won't resolve the hanging issue. When a considerable number of people go through this cycle, they start to understand the importance of investing in quality products.

We offer a lot of promotions during Diwali, depending on the market situation. It varies based on factors like which models are in demand and what benefits we can provide. We offer discounts and accessories. If a mobile phone costs 10,000 rupees, we might offer a discount of 500 rupees, which attracts customers. We can also provide accessories at a lower price, which can be quite profitable.

If the customers encounter defects in the mobile phones that are purchased, the companies generally handle replacements within a specified period. If the issue is more complex, they may suggest a service center near your location, but we stay updated on this.

Limited shelf-space and deciding what brands or phones to stock used to be an concern in the past. It all depends on market demand. The Karamadai store is the largest compared to the rest, and it even has CCTV. These are considered substantial stores. Initially, when I started, every store was considered sizable, and we had separate racks for various brands. Nowadays, there's less demand.

Super stockers typically come to us. If you have a shop, they'll approach you regularly. We have a shop in the area, and we supply products from here to there. The super stockers inform us of their stock requirements.

We used to offer credit to customers in the past, but not anymore. There's no longer a market for it. Traditional ways of payment have diminished, making it less relevant.

We provide online payment options, such as Paytm, Google Pay, and Phone Pay. We accept card payments and have Axis Bank machines. However, there are charges for card payments, and they vary based on the type of card. Customers understand the additional cost associated with card payments.

While some models may not sell as quickly due to various reasons like potential issues with the model or battery backup, we generally maintain the original price. On occasion, we may run an offer, reducing the price by Rs. 1,000. We prefer not to drop it to Rs. 800 but will go with Rs. 1,000, often associating it with a 20% discount to encourage cash transactions.

We do not receive any discount from vendors. Our discounts typically range from 3-4% off the distributor price. We sell the products at the MOP (Market Operating Price), and the pricing structure accounts for a 7% difference.

I did have a YouTube page at one point, but I don't have it now. I received a lot of comments and updates, but there's no significant business associated with YouTube, and the market isn't conducive for it, so we've discontinued it.

I've been using Facebook for 2-3 years. I post on Facebook if we're offering any deals. We can have up to 5,000 members in our network. This allows us to connect with local contacts and let them know about our shop. It's a part of our marketing strategy, and I share this information with my friends. I don't have a separate shop page on Facebook. I share these updates on my personal account.

Just Dial provides an in-built location feature, and we aim to get our address listed on Vasanth Mobile. If you're new to the city and your phone is out of service due to an emergency, you'd find yourself in a city where you can't easily search for services. Not everyone is a regular customer. If you visit a shop that doesn't fulfill your needs, you can't easily explore the city to buy things. In such situations, having a phone in hand is crucial. When you search for the "best service," our shop should ideally be the first to appear. We pay for that prominence.

Cash deficit is a concern. There's often a sense that the available cash is insufficient. It's a daily concern.

I have a deep understanding of the business, around 99%. I can analyze and understand why a company is doing something, even when it comes to circuitry. So, I don't need to ask many people. I might inquire about market trends, rates, customer expectations, or the market situation. I don't typically need to seek business advice, given my experience.

Our plans aren't just about expanding; we will adapt the business to the changing market. We'll update the products, the rates, and stay agile. No one can predict the future of technology, so we'll change according to the market's needs. While they may still be focused on mobile business (20%), I'm diversifying into other areas to adapt to the changing market.

The shift in consumer needs has led to the growth of Amazon and other online shops. Earlier, the idea is that if the product is available in the shop, you can visit the shop, make a payment, and get your mobile. In contrast, you can order from the comfort of your home and have it delivered to your doorstep. But there is a downside. In a way, there's little we can do. Big corporate companies operate in this manner, and we all become dependent on them. Distributors and super-stockists have expanded, and online retailers are dominating the market. It's crucial for traditional shopkeepers like me to regain control of their businesses.

WhatsApp is an essential tool. We even have a business class WhatsApp group. We add customers who come regularly, those who recharge their numbers, and our main contacts to this group. We use it to provide updates. We primarily use WhatsApp for second-hand sales, which are quite common for us. We update our price list and share details of upcoming sales. For instance, when we have a sale happening in a few days, we'll update the group with the sale rates and information about when the mobiles will be available and when the checks will take place. We also update our customers about ongoing offers through WhatsApp.

Google is an integral part of everything. There's not much more to say about it. We use Google for various business-related searches, including checking rates, finding distributor numbers, and looking for super service contacts. Everything we need is right there.

Many people suggest that there are local pages where you can sell online, and it's more about local sales. There were apps for selling online, but now the trend seems to have shifted towards online entertainment. People have apps for that, where they can update products and their rates. I can't recall the name at the moment. I've listed my mobile phone on one such page where customers can chat and even have video calls. They prefer chatting from home, and the buyers visit the shop to inquire about multiple products. Shops are not typically meant for entertainment or prolonged inquiries. While these platforms existed initially, they may not be as prominent now.