Who among you would like

to go into business?
Retailing
It is selling
goods directly
to consumers.
Types of Retailing
1. Store-based retailing-Store
retailing can take the
form of an over the
counter service or a
self service store, a
big department store,
or a small kiosk
offering a variety of
goods.
 Supermarket
A large self service
store that carries a
wide variety of
household, and
laundry products.
Convenience Store
A retail store that is
located near a
residential area that
is usually open 24
hours a day, 7 days
a week.
Department Store
A retail store that
carries wide variety of
product lines, usually
clothing, shoes,
accessories, and
home furnishing
Specialty Store
A retail store
that specialize
on a certain
product line.
Shoes and Bags
Skin Care

Clothing
2. Online Retailing-
Retailers connect to
individual consumers
through the internet.This
makes shopping easier for
consumers by allowing them
to order products hassle-
free through the
computer.
 3. Nonstore retailing
Call it a
revolutionary way
of retailing, it keeps
up with the
competition by a
wider base.
Catalog and direct mail retailing

• is a retail format that

allows consumer to
choose product from
catalogs or brochure
that are send to them
directly via mail.
Direct selling
• is a retail format
wherein the distributor
contacts the
consumer directly to
home or at work to
offer products.
Television home shopping
is a retail format that uses
television a medium to
demonstrate the features
and benefits of a product
that allows consumer to
place their orders through
telephones.
Vending machine retailing
• is a non store format
wherein products such
as soft drinks coffee
and chips are available
to customers through
the vending machine.
Types of Retailing
by ownership
1.Independent-Single store
establishment
2.Corporate retail chains
-is a company operating several
retail units under a single
owner or management.Desicion
making is centralized in this
type of retailing. An example is
SM which has branches in the
key city in the Philippines all
of them are owned by Henry
Sy.
 27- Malls in METRO MANILA

SM Center Angono SM Aura Premier

SM City of Paranaque SM City Bicutan
SM By the Bay SM Cherry Congressional
SM City East Ortigas SM City Fairview
SM Center Las Pinas SM Mall of Asia
SM City Manila SM City Marikina
SM City Masinag SM Megamall
SM Center Muntinlupa SM City North EDSA
SM City Novaliches SM Center Pasig
SM Maison SM City San Mateo
SM Cherry Shaw SM South Mall
SM City Sta. Mesa SM City Sucat
SM City taytay SM CityPoduim
SM City San Lazaro
North Luzon - 19 Malls
South Luzon - 17 Malls
Visayas - 6 Malls
Mindanao - 5 Malls
3.Franchising
is a contractual
agreement
between a
franchisor and
franchisee
franchisor

-one who grants

a franchise
franchisee

-one who buys a

franchise
that allows the franchisee
to buy the rights of the
company’s name and to
sell its product or service
in exchange for an up up
front franchise fee (prices
vary between industries)
and on going royalties,
usually 3-6% of sales.
Advantages of Franchises
1. An established brand

franchises often
salls products
with regional,
national or even
global
recognition.
2.Training
Franchisors
generally
provide training
to new
franchisees.
3.Volume -
Purchasing power
Franchisors buy parts,
raw material, or
ingredients in bulk, and
therefore can negotiate
far better deals with
suppliers than an
independent small
business owner can.
4.Advertising
Many franchisors
provide a constant
national or
regional
advertising
5.A proven business model
Many franchisors have
succeed for one major
reason: their business
model work. Moreover,
one’s franchisor probably
has encountered and
overcome the most of the
problems one will face
6.Accounting and budgeting
system
When one buys a
franchise, he or she adopts
the accounting and
budgeting system of the
franchisor, which eliminates
the complicated task of
devising and implementing
one’s own.
7. Other help in running
one’s business
Franchisors want
one’s to succeed:
success translates
to higher royalties
for them.
Disadvantages of Franchising
1.Franchises can be very
expensive
Franchise fees,
especially the big names,
could amount to millions.
In addition, franchisors
demand on going royalties
regardless of whether his
or her business makes
profit
Disadvantages of
Franchising
2.Franchisors may require the franchisee
to follow their operations manual to the
letter – This rigidity ensures consistency
among a firm’s franchises, but it may
curtail a franchisee’s independence and
creativity, which might frustrate him/her
if he/she has gone into business to be
his/her own boss.
Disadvantages of
Franchising
3.Buying a franchise is like marrying someone
you have not known for very long – What if
one’s new partner become cold and distant or
controlling? The fact is franchisees enter a
legally binding, a long term relationship: the
average length of initial franchise is 10.6 years,
according to the International Franchise
Association (although the terms significally
between industries
 Disadvantages of
Franchising
4. The relative security offered by
franchises may be exaggerated- one
study showed that during a four year
period, franchises were almost twice
likely to go out of business as
independent small business that had
been purchased by their own owners.
Questions to ask
before buying a
Franchise
When one buys a franchise, he or she is putting
big money on the line and his/her success does
not entirely depend on him/her. The quality of
the company that stands behind one’s franchise
also matters a great deal. Thus, it is important
to find out as much as one can about the
parent company before one lays his/her money
down
Here are 10 questions to ask:
 Questions to ask before
buying a franchise
1.What type of franchise is it? – Most franchises
are “package franchises” businesses such as fast
foods restaurants, muffler shops, or hotels that
come complete with a business model laid out by
the parent company. That model covers
everything from financial controls to hiring
guidelines. “Product franchises” include businesses
such as car dealership and gas staition that exist
mainly to distribute the parent company’s
goods. Owners of product franchises have more
control over the way they run their businesses
Questions to ask before
buying a franchise

2.Does the business lend itself to the

franchise model? – Fast-food businesses
, for example, greatly benefit from
their association with the brand name
of their franchisor. That might not
hold true, however, for a car wash
Questions to ask before
buying a Franchise

3.How many franchises does the

organization have? – A large number
of franchises indicate a successful,
established business. One should be
careful, though, if a firm’s other
franchises are located near one’s own
he/she could wind up competing with
nearly identical business
Questions to ask
before buying a
Franchise
4.How much is the franchise fee? –
Franchise fees depend on how in
demand a product or service is, or
how established the parent company
is. Franchise fees of popular
establishedments such as Jollibee are
far more expensive.
Questions to ask before
buying a Franchise

5.How much will one has to pay in

royalties – Franchisors generally
charge royalties equal to 3% of each
franchise’s revenues. Some firms
charge significally more, though, and
others charge flat fees on and
ongoing basis.
Questions to ask before
buying a Franchise

6.How much will one’s business really

make? – The parent’s company
projections probably are optimistic.
One should run them by other
franchisees
 Questions to ask before
buying a Franchise
7.Can one work with these people? – When
one buys a franchise, he/she is in for the
long, expensive haul, so one better be able
to work with his/her new bosses. He/she
should make sure to visit the company’s
home office, even if it is in a different
place. He/she should also ask other
franchisees about their experiences with the
parent company.
Questions to ask before
buying a Franchise
8.How will the franchisor help the
franchisee? – A franchisor may help one
select a site for his/her business,
negotiate a lease, advertise for and
interview prospective employees, get
business licenses, finances the franchise fee
or equipment cost, or provide other
services. One should ask what the
franchisor will do for him/her, and get it
Questions to ask before
buying a franchise
9.Is the franchisor’s company
legitmate? – Some franchisors try
to bilk new entrepreneurs. Check
with other franchisees, the
Department of Trade and
Industries (DTI) and the Philippine
Franchise association to determine
the legitmate of the franchise.
In retaling,
entrepreneurs
need not worry
about delays in
production or
excess inventory.
They also do not need a
large capital to start their
business. All the have to
do is to choose the right
product for their target
market and exercise their
selling skills.
Thank You
God Bless!