Thoughts?

On what exactly,

Tthe $30K price? which sounds cheap for a business,

The hours?- which sound short, most dairies I know usually open  past 8pm

Or selling lollies (and presumably fizzy drinks) to Kids?, which is likely to get lent on by the health-police in the near future ....

I think they bought a dairy.

Don't forget to put cigarettes aside for the armed robbers.

30k seems pretty cheap for a dairy ??

I am wondering if perhaps they bought a diary for 30K. Seems expensive, but not nearly as improbable as a decent dairy for 30K :) 

Yes the purchase price was $30K.

Yes I think it's cheap.

Perhaps because he took ages to sell it? I don't know.

Thoughts on what should change, not change, what they should sell, concentrate on etc,.

I didn't buy it, as I said, friends partner did. No dairy experience....

I classed it as a startup- ok, it was an existing business but she gutted it, and didn't keep much old stock and wants to change the way it was run before...so it is a startup really.

Personally, I'd be looking for what gets people through the doors. Cheap Milk and Bread and then product placement is what you want.

Your friend will learn what she can purchase cheaply and sell at huge margins. 

She needs to get her head around that no dairies in NZ work the hours you are proposing. They are popular because they are convenient. This means being available when others aren't. 

pctek:

I classed it as a startup- ok, it was an existing business but she gutted it, and didn't keep much old stock and wants to change the way it was run before...so it is a startup really.

.......at least closely related to technology that can be used in New Zealand

Presumably the $30k is not including freehold on the premises - and you'd have a lease, I don't think that's "cheap".

From the look of most of them, you're taking on the opportunity to earn less than minimum wage and to be sued for any other assets you've got if you can't meet the lease payments.

(Yes - some dairy/convenience stores do okay - but they won't be for sale for $30k).

If the nature of the business is being changed from dairy to cafe / tuckshop, then why pay any goodwill or for stock, fittings etc?  Better to start off from scratch.

Where is it?

My parents used to own a dairy, but it was in a beach location (directly across the road from a popular beach). Sold a ton of icecreams over the summer (and Coke, and 50c bags of lollies). It made them pretty good money - was turning over about $2k in winter and $4k in summer (per day, early 90s). I remember the summer Coke deliveries - was basically a half of one of their curtainsider trucks - we had boxes of Coke anywhere we could fit them. All sold over the summer though.

They sold that business for a lot more than $30k, back in about 1994. It's still going pretty well - location means everything.

If I was running a dairy in this day an age, I wouldn't sell tobacco products. Not due to any moral reasons, but the increases in tax have made dairies a target for armed robbers. I'd also put a big sign on the front of the premises, stating NO CIGARETTES just to save the crims the trouble of breaking in only to find nothing to take.

great thread title

maybe be a little more descriptive in the future so you don't waste peoples time clicking on it

Journeyman:

 

If I was running a dairy in this day an age, I wouldn't sell tobacco products. Not due to any moral reasons, but the increases in tax have made dairies a target for armed robbers. I'd also put a big sign on the front of the premises, stating NO CIGARETTES just to save the crims the trouble of breaking in only to find nothing to take.

 

I think you'd struggle. People come for the tobacco and then buy other things, without that pull you would be losing a huge portion of custom. Margins are huge, but you need volume too as there can be a lot of waste.

It's not just the cigarettes but all the accessories etc too.

Some dairies I have seen have small vaping areas now too.