These kind of shops generates customers easily, but the competition is too much. I noticed that the business owners, also have their loyal customers. Despite having such a similar shop selling same thing at same price, each of them have specific people that purchase from them. Now, in the bad economy, this type of shops give out their products to those loyal customers on credit. Especially those who live close to the store. Thereby, making them more loyal to the store and expanding their number of customers. But, while in business, it's important to diversify. I know everyone needs those groceries everyday and they buy it. Offering a business that helps them process those raw foods purchased from the shops is a great business move. Most people enter business because others do, and end up winding it up. While in search of a small business idea, we must observe the needs of people living around the environment or the type of audience interested in buying the product. For instance, where timbers are sold, we should think of providing a chain saw machine to the environment, because they must need it. Instead, of joining the masses in selling timbers, opening a place where the timbers are being cut into different sizes would earn us good profits. Providing the needs of the store owners is very crucial in boosting our profits. Another instance, is opening a shopping bag store close to the shops where food stuffs are sold. The sellers need the bag to package goods for customers and the more they make sales the better the profits of the bag seller. It only requires some time, until the whole sellers, in the vicinity, begin to patronize the business.
Yes it is like that, even shops like this around my house are not just one so indeed shops like this have fierce competition, as I said by differentiating prices a little cheaper then they will pursue shops that have cheaper prices even though the price difference is very small it can affect their marketing. also this shop will have loyal customers like you said, they will shop because it is convenient at an affordable price. With basic needs every day, it is possible that a shop like this will not be extinguished by always providing basic necessities that will definitely be sold every day. But of course there will also be definite risks, by managing it well it doesn't matter, even if you can manage it well it could be faster to reopen a gerosir shop or grocery store in another place because as I said there is the potential to grow quickly because by differentiating prices a little cheaper than other stores.
Reducing prices is great way of getting more customers. When the next shops increase prices and it's important to maintain the company price. And still offer quality products. It'll yield more trust from buyers and fetch new customers. The new customers we should expect are those who don't feel right about the prices other shops provide and wants to check elsewhere. But, they're customers that believes, since this shops sells at this rate, that shop would also sell at same rate. Unless someone tells them about getting same product and quality at a cheaper rate in the other shop. What I mean is that the loyal customers of the other shop owners still wouldn't mind buying at their favorite shop owner's shop. But the cheaper shop would definitely gain more customers in the street where they reside. Expanding quickly; building more in different province would be detrimental to the growth of the business. The growth of such shops still take years to get to a big sized shop like a mini super market. When running such a business it'll be great to hold tight the environment we started and win them over for years. Then establish a new one elsewhere, when we are sure about the solidity of the first shop. Thereby building the next one with the income the first one generates. And maximizing profits due to the increase in demands. Or maybe selling some products from the first in the new one. That would be a better idea and also reduce the risk of losses.