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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

That some small businesses are failing because they don’t adapt to the needs of their customers?

783 replies

Isawyou · 18/02/2023 23:02

I try to shop local. Fortunately I do have some great independent places nearby.

What I am finding frustrating is for example the fruit and veg shop closes at 4.30pm. They start packing up at 3.45pm and it is really difficult to buy things from there where they are stacking all the stands with the produce inside. They also look unhappy at customers coming to buy at packing up time. It is easier to go to the Tesco express that stays open until midnight.

Other shops do not open until 10am and close early. So I can’t get there before work or after work.

They complain their businesses are not doing well and people do not shop local but they are not exactly facilitating it for the customers either.

OP posts:
hettiethehare · 19/02/2023 08:47

The not opening until 10am thing mystifies me - between 9 and 10 is when I am most likely to want to go to the shops! It’s post school drop off so now I will be walking home, but when I was in the playgroup days I always wanted something to do between school drop off and either preschool or playgroup starting and ended up wandering round B&Q for want of any better options.

Kazzyhoward · 19/02/2023 08:51

@FfaCoffi

A lovely fish and chip shop not too far from us is going cash only. There's no cash machine near them. Seems to be an act of self harm to me!

Likely to be them trying to avoid the VAT registration threshold which hasn't increased for years, meaning ever increasing numbers of small businesses are having to register for VAT at a cost of thousands, especially with inflation, resulting in the turnover/sales of some businesses are rising due to higher prices (breaching VAT threshold), but profits are less even before losing thousands in VAT. Siphoning off some cash sales and not declaring them can be the difference between survival and failure!

Some small businesses deliberately open fewer hours to avoid VAT registration if they don't want to go down the "cash" tax evasion route. That's especially the case for small cafes, corner shops, etc., where they'd lose a huge percentage of their profits if they have to register for VAT! One of my clients is a guest house who deliberately "underbook" their rooms as they trade literally just under the VAT threshold. If they breach it by even a few pounds, it will cost them over £10k to the VAT man - as the VAT threshold isn't increasing with inflation, they're having to reduce occupancy levels to stay under it!

Kazzyhoward · 19/02/2023 08:53

hettiethehare · 19/02/2023 08:47

The not opening until 10am thing mystifies me - between 9 and 10 is when I am most likely to want to go to the shops! It’s post school drop off so now I will be walking home, but when I was in the playgroup days I always wanted something to do between school drop off and either preschool or playgroup starting and ended up wandering round B&Q for want of any better options.

As has been mentioned by a few posters, the owner/staff may also have to drop their kids off at school, so can't be in two places at once. It's ridiculously hard to find part time staff who are able/willing to work at school drop off/pick up times as most are wanting 10-2 type part time work so they can do the school runs!

Bippetyboppityboob · 19/02/2023 08:53

MistressoftheDarkSide · 19/02/2023 08:46

Well this thread is very informative....

I'm a small business owner. My shop has been going since 2016. We opened it when my MIL came to live with us due to dementia so that I could care for her on-site until she was too far gone and went into a care home, because we couldn't afford to be a single income family.

My shop is niche - serves the "alternative" community and is gift / lifestyle oriented.

I have tried every combination of opening hours to suit our customers, and apparently it's never right.

We survived Covid just about, thanks to a council grant, and we moved to cheaper, smaller premises about 18 months ago.

During the years I've been running, I nursed my DM in her last month of life through the cancer she was diagnosed with two weeks after my MIL went into the care home. That was in early first lockdown which of course was a weird blessing in disguise.

One month after our re-opening at the new premises my DP died suddenly after a three week illness - undiagnosed cancer.

In the immediate aftermath my DIL kept the business on life support and did a grand job until I could get my shit together, but it was voluntary as things went a bit hand to mouth without DPs salary.

I now open 6 days a week, 11-6.

I only need to take £200 a day to be comfortable and up until the end of last year was doing ok. Thanks to the cost of living crisis, continuing roadworks on the route into my area, etc etc this has dropped off and some days I'mlucky if I take 50.00. It's my only source of income. There was no life insurance or anything else because my DPs passing was utterly unpredictable.

The customers I do have are great, and love the shop, but they don't need a new crystal every day, so I spend a lot of time whoring myself out on Facebook trying to encourage new customers.

Online is something I need to sort out, but I am one person and there is admin, laundry and sleeping is helpful.

I take cash and card, and will do postal sales generated by Facebook interest.

I try to be upbeat and humorous but I'm still grieving, and our new shop is a huge reminder every day of my DP and our time putting it together.

I can't afford to pay staff. Friends have volunteered to work for free but that involves admin and insurance implications.

I just want to make a living doing something I love without being beholden to the state. I don't want to be a millionaire or build a corporation.

I have had customers complain I am more expensive than a charity shop, well I'm not a charity shop and the pre-loves niche clothing I supply isn't charity shop fodder. I have had people photograph items in my shop to find them cheaper on line and cheerfully tell me they're doing it.

I wouldn't mind if I was over priced, but my price range is 1.00 upwards. And I charge RRP from my wholesalers.

You see, small independent businesses are run by human beings who want to be part of the community sometimes. And as humans, they have lives that are messy and incompatible with the business sometimes.

My DP died at the end of January - his funeral was in March. I had three months to sort everything out and was back in the saddle in April.

I'm putting this out there just as an example of why your local independent business might not be operating to corporate standards.

Oh, and why don't I apply for Universal Credit? That's because yet another level of bureaucracy would see me in a padded cell most likely.

I don't want pity, or charity - I just want to be self-sufficient.

Sorry for your losses, can absolutely see how it is ridiculously stressful for small business owners. Your shop sounds amazing and shops such as that which are fuelled by a passion for the products and offer something you're unlikely to find elsewhere (despite rude customers claiming otherwise) I'd happily pay more for and be flexible around opening hours. You offer something unique. If it's a shop though that sells the same as anywhere else then I personally wouldn't bother to work around their ridiculous opening hours or pay double for the same product.

It does sound like your products would do really well online, could some who have volunteered to help do some of that admin and avoid the insurance issue of them being in the shop?

midgemadgemodge · 19/02/2023 08:54

Most people don't do a school drop off each day 😀

What percentage of the adult population work full time 9 to 5 jobs ?

The retired don't work
A lot work shifts like nursing
A lot work part time
A lot work irregular hours like in retail

Bippetyboppityboob · 19/02/2023 08:55

Kazzyhoward · 19/02/2023 08:53

As has been mentioned by a few posters, the owner/staff may also have to drop their kids off at school, so can't be in two places at once. It's ridiculously hard to find part time staff who are able/willing to work at school drop off/pick up times as most are wanting 10-2 type part time work so they can do the school runs!

But when in many places this would be one of the busiest parts of the day it surely becomes a bit of an issue?

QuertyGirl · 19/02/2023 08:55

I don't understand why any businesses would be cash only. I never carry cash

magnifying · 19/02/2023 08:57

We have a family-run farm shop near here but they're only open 10-3pm on Mon-Fri. That might be so that they can fit around school hours (no idea!) but on the rare occasion I've got a day off and have popped in, there's a max of 2 or 3 people in the shop. They recently had to shut down their little cafe as no one was going.

I wanted to suggest they did a trial run of opening say 3-7pm plus Saturday mornings. If it worked, they might actually be able to employ part time staff. As it stands, I'm not sure this business will be viable for much longer. 😬

Kazzyhoward · 19/02/2023 08:58

BaroldFromEastenders · 19/02/2023 02:32

There’s a DIY shop in my small town who are open all week but always closed on a Sunday. Most people are doing their DIY on a weekend and this shop has the monopoly in this area - the nearest big DIY store is 40 minutes away. Absolutely missing a trick not being open - just close on another day during the week!

Perhaps they don't want to lose the "tradesmen" trade on Mondays to Fridays who probably give them more trade (and regular trade) than the occasional Sunday DIY-er?

The local plumbers, electricians, decorators, etc., will be using that DIY shop on a regular basis for items they unexpectedly need when on local jobs and won't want the 40 minute drive to go to the "big" store will they?

Kazzyhoward · 19/02/2023 09:00

Bippetyboppityboob · 19/02/2023 08:55

But when in many places this would be one of the busiest parts of the day it surely becomes a bit of an issue?

Yes, indeed, but if they can't get staff, then they can't. Are you suggesting a return to slavery and press-gangs?

MistressoftheDarkSide · 19/02/2023 09:00

@Bippetyboppityboob

Thank you for your kind words.

With regard to getting help from my very kind volunteers to do on- line etc, it's a question of organisation- many of those who offer have significant issues in their own lives and this leads to a rock and hard place situation with regards to consistency and reliability. Believe me, all I can do at the moment is keep putting one foot in front of the other and hoping that the physical, mental and emotional exhaustion can be kept at bay.

Tomorrow is always another day....

Username24680 · 19/02/2023 09:01

Superstorefan123 · 19/02/2023 07:31

I totally get the point that small businesses maybe can’t afford to be open all hours but what I don’t understand is why they pick the hours they do!

One local cafe is open 7-2 and another 10-4… one is packed with commuters picking up a morning coffee/and another is empty :(

shops would be better off doing weekends and skipping a Monday/Tuesday!

@Superstorefan123 Completely agree with shops doing weekends or at least having some opening hours at weekends. But Monday is actually our busiest day in my shop 🤷🏻‍♀️ Saturdays and Sundays are massively hit and miss!

MachineBee · 19/02/2023 09:01

A relative of mine ran a toy shop. Did well to begin with and she operated on reasonable opening hours, stayed open at lunch, opened early to catch school run and did a full day on Saturday.

But when a big toy superstore opened in a nearby town she started to see sales dropping. People still came in to check out the products then would go and buy it cheaper from the superstore.

She tried so many ways to up her turnover, she introduced a soft play area at the back of the shop, offered ‘click and collect’, gift wrap, delivery and gift shopper services. Did late night shopping in the run up to Xmas. She could have sold many times more Lego advent calendars but they would only supply limited amounts to small shop. Her most successful innovation was a used kids clothes rail. You could have cash back for sales less a percentage or the full price in vouchers for goods in the shop.

The only time in her final years she was able to break even was when there was heavy snow in mid-December and locals panic bought presents.

She was gutted when the inevitable closure had to happen but she simply could make it economically viable. Two local jobs went with her closure too.

NotQuiteHere · 19/02/2023 09:01

CatJumperTwat · 19/02/2023 01:32

Well most small businesses are run by one person or maybe have one or two part-time staff. They can't open the same hours as Tesco and have any kind of life. Nor can they get the same bulk discounts or stock the variety that Tesco can.

Independent shops are never going to be able to "adapt" in the way chains can. If you want them to stay you need to accept less convenience and more expense.

Why would I want them to stay and accept inconvenience and more expense if they themselves don't seem to be willing to stay?

Happygirl79 · 19/02/2023 09:03

Kazzyhoward · 19/02/2023 08:51

@FfaCoffi

A lovely fish and chip shop not too far from us is going cash only. There's no cash machine near them. Seems to be an act of self harm to me!

Likely to be them trying to avoid the VAT registration threshold which hasn't increased for years, meaning ever increasing numbers of small businesses are having to register for VAT at a cost of thousands, especially with inflation, resulting in the turnover/sales of some businesses are rising due to higher prices (breaching VAT threshold), but profits are less even before losing thousands in VAT. Siphoning off some cash sales and not declaring them can be the difference between survival and failure!

Some small businesses deliberately open fewer hours to avoid VAT registration if they don't want to go down the "cash" tax evasion route. That's especially the case for small cafes, corner shops, etc., where they'd lose a huge percentage of their profits if they have to register for VAT! One of my clients is a guest house who deliberately "underbook" their rooms as they trade literally just under the VAT threshold. If they breach it by even a few pounds, it will cost them over £10k to the VAT man - as the VAT threshold isn't increasing with inflation, they're having to reduce occupancy levels to stay under it!

A very valid point. The government are moaning that the UK economy is not growing. If only they would read comments like this it might help them see alternative solutions

Bubblebubblebah · 19/02/2023 09:05

Kazzyhoward · 19/02/2023 09:00

Yes, indeed, but if they can't get staff, then they can't. Are you suggesting a return to slavery and press-gangs?

Erm that's bit of a leap there. 😂

Frankly, if they can't open at times when they get most custom, they really just have to make peace with that and not do "why is no one supporting their local shops🥺" on facebook. Again, saying that as one of the SMEs in hospitality.
You wouldn't take an employment if it needed you in at times you can't do, you should treat your business similar way. You can either do it, or you can't. Or you make peace with plodding around accounting red line.

HelloBunny · 19/02/2023 09:06

Agree about some new places mis-reading their market. My parents live in an affluent village, mostly retired folk in big family homes. There’s a sustainable fashion place with ridiculously priced clothing opposite a couple of long-established “lady” boutiques. And a similar eco-friendly lifestyle store. Again, all vegan this & that. But, the prices! My mum & dad are rich, but are very keen penny pinchers... I’ve never seen anyone in these new shops!

lljkk · 19/02/2023 09:07

Some local shops deliver or open at 7:30am. They still won't get evening trade if they were open weekdays after 4pm.

Local town centres are empty after 3pm. Local supermarkets are busy with school run parents & retired people & office staff until 1pm, not that busy afterwards, while heaving on weekends. I'd say most people who can't shop in the day either shop on weekends or get deliveries. They aren't going to pop into local shops on weekday evenings.

Yesthatismychildsigh · 19/02/2023 09:07

There’s a newish independent optician popped up in one of the tiny shops in my local Asda. It’s been over a year and still no signage. I went in for a look, absolutely no prices anywhere. I know different add ins can add to the price, but not even any prices on the frames, let alone a list for extras eg lens thinning, coatings etc. I mentioned the lack of prices on the frames and they said ‘oh just ask’. Firstly, I don’t want to be asking the prices of lots of frames. Secondly, it did make me wonder (possibly irrationally but not unknown) if there was a tiered price system. Similar thing in a tiny grocers on the main road in Sowerby Bridge, I don’t want to have to ask the price of bacon, eggs, bread etc. Makes me think laziness or dishonesty.

ZeldaWillTellYourFortune · 19/02/2023 09:09

Bippetyboppityboob · 19/02/2023 08:22

If you want them to stay you need to accept less convenience and more expense.

what part of less convenient and more expensive leads businesses to believe customers are arsed if they close? Sounds harsh but most probably aren't bothered. I do get supporting local businesses to help support someone's dreams etc, but if they only offer stuff that's readily available, more accessible and cheaper elsewhere then will it really be that missed? For example there's a small bookshop here, now of course I accept they can only hold a small stock and the rest will take time to be ordered in and that they can't compete on pricing with others, but the experience is always horrible too. Rude, stuck up staff, pretty dirty and uninspiring, orders take over a week and they add on an admin charge, so full RRP + an admin charge and waiting a week or half the price for next day delivery from the comfort of home?

Exactly.

The small independent proprietors need to add value. Delivery, a pleasant ambiance, expertise, something. But in my experience they can't be arsed, yet still expect us to "support" them.

Sorry, done with that.

Dandilion9 · 19/02/2023 09:09

Ahh this is the trap of it all though. Its exactly the same with shopping for decent food but the rubbish food is always so much cheaper. It's the peeves in life that push us into funding these big corporations.

Scalottia · 19/02/2023 09:11

ThisNameIsNotAvailable · 19/02/2023 08:12

Or the pizza van could take pre-orders which are paid for online.

I’ve struggled to keep cash in my purse for years as I have kids who always needed money for something. I pay for everything on Apple Pay now, if you want cash - sorry, I don’t have it so I’ll go somewhere else or go without.

I am not defending the pizza business, they are missing out on potential business by not offering card payments.

But....is it really that difficult to think 'oh wait, I have kids that need cash for things, I know, how about I withdraw more cash so that I have enough for unplanned child related expenses'? Maybe even withdraw extra cash for those times that you want a takeaway etc. It isn't difficult with a little extra planning and forethought.

Isawyou · 19/02/2023 09:13

Thelnebriati · 18/02/2023 23:22

You don't have to be confrontational about it but have you asked them why they don't stay open later? It might be problems with childcare, or that the shop doesn't pay enough for them to stay open.

Not an issue with childcare as the shop and the staff are around 65+. Could be grandchildren I guess but they start early and so want to finish early. They even close 4pm on Saturday when so many people are out and about and always closed on Sundays. It is dead in the week but that is when they want to open which is fine. They took part in a big shop local campaign with special discounts. But opening hours remain unchanged.

The owner of the shop was really rude when strawberries had been priced incorrectly. He spoke to me so patronisingly that I started shopping elsewhere.

Another fruit and veg place opened nearby that stays open till 7pm two nights a week. They do a roaring trade. They close on Mondays to compensate. That is listening and adapting to the needs of your customers. I know I can easily get there after work and weekends.

OP posts:
DogInATent · 19/02/2023 09:13

Kazzyhoward · 19/02/2023 08:51

@FfaCoffi

A lovely fish and chip shop not too far from us is going cash only. There's no cash machine near them. Seems to be an act of self harm to me!

Likely to be them trying to avoid the VAT registration threshold which hasn't increased for years, meaning ever increasing numbers of small businesses are having to register for VAT at a cost of thousands, especially with inflation, resulting in the turnover/sales of some businesses are rising due to higher prices (breaching VAT threshold), but profits are less even before losing thousands in VAT. Siphoning off some cash sales and not declaring them can be the difference between survival and failure!

Some small businesses deliberately open fewer hours to avoid VAT registration if they don't want to go down the "cash" tax evasion route. That's especially the case for small cafes, corner shops, etc., where they'd lose a huge percentage of their profits if they have to register for VAT! One of my clients is a guest house who deliberately "underbook" their rooms as they trade literally just under the VAT threshold. If they breach it by even a few pounds, it will cost them over £10k to the VAT man - as the VAT threshold isn't increasing with inflation, they're having to reduce occupancy levels to stay under it!

VAT is definitely an issue. There's a massive drop-off in the number of businesses around the threshold when ranked by turnover. The peak in sole traders just below the threshold is telling. Just a guess, but if the threshold was given a massive hike the increase in tax take from employment taxes would exceed the reduction in VAT take.

That some small businesses are failing because they don’t adapt to the needs of their customers?
user1497207191 · 19/02/2023 09:15

Our family had a "traditional" corner newsagents shop for 20 years from around 1975 to 1995. We opened 6am to 6pm Monday to Saturday and 6am to 1pm on Sundays, with wednesday half day closing from 1 to 4 (had to reopen for evening papers).

Many times we tried longer opening hours, but the trade never justified it. Even when we got the National Lottery and had to open later on Saturday evenings for people to buy last minute tickets, it was ridiculously quiet. I remember one Summer, we decided to open all day on the Sunday, and we tried it out for about 3 months - we'd be lucky to see more than a couple of customers each afternoon. We were also there later on Tuesday and Thursday evenings to mark up the local newspapers for delivery Wed and Fri morning (there were hundreds to mark up as nearly everyone got a local paper in those days) - we were there, so we'd be open, but, again, no one came near.

The one and only time it was really worth opening, was a one-off hot air balloon rally in a field opposite - it was a hot & sunny day, and we literally sold out of soft drinks, ice creams, etc - that was simply from people attending the rally, not locals.

We have a small pie/sandwich shop in our village. New owners took it over last Summer. They tried all sorts at first, longer opening hours, broader product range, lots of local advertising including heavy presence on local Facebook groups, leaflet drops, etc. We have a big fireworks display so they opened late afternoon and early evening on Bonfire night in the hope of getting passing trade as hundreds of people walk to/from the field past the shop. They won't be bothering again as it cost them more than they made as barely anyone went in (they should have known really as the village chip shop closes early on bonfire nights due to lack of trade, despite hundreds of people in the village!). The pie/sandwich shop has now gone back to closing early and back to simple pies/bacon buns etc as that's where the money is - they couldn't justify paying staff to work afternoons when there was no trade!

I have no doubt at all that "some" small shops are run badly and many will be "vanity" projects, especially hobby/dress type shops run by someone who just wants something to do for pin money rather than trying to make a living! But I think most are actually run professionally and the owners take proper business decisions as to when they open and what they sell based on experience. You can't stay open extra hours for a handful of customers. Yes, there's the chicken and egg situation, but how many months/years do you run extra hours at a loss until critical mass means it's actually worth opening?