For variety of reasons, more than 90% of shops are unable to grow beyond one single shop location, whereas few shop owners are able to open multiple shops and grow their business annually by 20% or more. In business, it is important to manage cash flows, and treat your vendors with respect. Why should a customer walk in to your shop versus another shop? The discounts do work in short-term, but you would want to go beyond that to build a sustainable and growing business.


Almost all brands give discounts based on purchase volume, and past repayment history. If you are only purchasing up to Rs. 2 L of inventory from distributors, then you might not qualify for discount. Once you start doing business of Rs. 5 L with a distributor, you would qualify for about 2% discount. For higher volume, you would get additional discounts. These discounts are either directly provided by the manufacturer (brand), or the distributor. Once you have 15-20 shops, you can directly get inventory from manufacturer or super distributor, increasing your margins. This means that the cost of goods for a retail chain is much lower than that of a single shop owner, enabling the retail chain to pass discounts to the customer. We at LOANMEET ( ) recently approved Rs. 3.6 L working capital for six months to a retail store, as he plans to open two new stores.


The distributors ask retailers to pay in cash for first and second purchases. After that, the distributors provide credit for 15, 20, or 30 days to shop owners. The vendors are eager to work with retailers who pay on time, and want to extend credit to them. The distributors hate payment delays, and they do not want to work with shop owners who make excuses for late payments. Instead of that, they would love to work with a new shop that is making timely payments. If you need credit to purchase inventory, then we could reach out to LOANMEET (  ( ) at 91-7259355400, or download the LOANMEET APP ( ). We are providing 15 days, 21 days, or 30 days loans to retailers to purchase inventory.


The customer experience plays a big role in repeat purchases of a customer from the same shop. The Marwaris and Gujaratis are experts in understanding the customer’s needs, and they treat customers with respect. They hardly lose a customer on price, and they make a point to the customer to come again.  These store owners get a chance to expand their business, and we at LOANMEET can help you grow from one store to another store.