How Much $$$ Will My Grocery Store Make?
Published: 2025-04-19
Status:
Available
|
Analyzed
Published: 2025-04-19
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
A laundromat added to the discount grocery store location could generate an additional $15,000 to $20,000 in monthly revenue.
"I do think that a laundromat here could bring in another 15 to $20,000."
Pending
Following purchase and optimization, the discount grocery store could achieve a valuation of 3x EBITDA, resulting in a 33% cash-on-cash return for an investor.
"I think that after purchase and optimization, you could get this up to three times IBIDA or a 33% cash on cash return."
Pending
To realize the full potential of the business, an investor would need to be actively involved and not treat it as a passive investment.
"Now, on the downside, it would require active investment, meaning you have to get involved in this business and do things."
Pending
Competent managers can be found to run the business if an investor prefers a more passive ownership model.
"If you want to buy it as a passive type thing, I'm sure that I could help you find some competent managers in my local community that would do a lot of the heavy lifting for you."
Pending
Discount grocery stores can acquire candy bars at significantly lower wholesale prices (e.g., 75 cents) than typical retail costs, enabling them to sell at highly competitive prices (e.g., 2 for $1).
"So, these candy bars that I buy at Sam's Club cost me wholesale 75 cents a piece. Yet the giant candy bars here are two for a dollar and the smaller ones are three for a dollar."
Pending
Wholesale meat, such as chuck roll, can be sourced by discount grocery stores for as low as $0.65 per pound, a significant reduction from the typical retail price of $4-$5 per pound.
"They've had here and I bought the beef off of them. They sold it to me for 65 cents a pound and it was chuck roll. That's like normally four or five bucks a piece."
Pending
Based on a valuation of $100 per square foot for a 6,750 sq ft building on approximately one acre of land, the property could be worth around $675,000.
"The land is about an acre. The building itself, I think, is 6,750 ft². You look at, let's say, $100 per square foot. That would take it up to $675,000."
Pending
A significant portion of the 5,000+ sq ft main section, currently used for storage, could be repurposed for other revenue-generating activities.
"The main section over here is over a little over 5,000 square ft. This is a square. This is a square. They used to have this section all done up, but now they just use it for grocery store storage."
Pending
A friend in a similar business has doubled revenue in one year by achieving over 100% markup on products, demonstrating a significant growth potential.
"I've got a friend of mine on Discord that now owns two of these places. Most of it's a 100% plus markup, which is absolutely phenomenal. He's taken his locations and he's almost doubled the revenue in one year."
Pending
Training cashiers to act as salespeople can lead to increased revenue and employee engagement.
"He turned his cashiers to salespeople and it's a situation where now everybody's got invested in his locations and everybody's making more money."
Pending
Implementing a $5 per unit commission on items like vapes could incentivize employees to sell double the daily volume.
"So, you could offer a $5 per unit commission. Employee sells 10 vapes a day, that's an extra 50 bucks in their pocket. You could sell double the amount of vapes on a daily basis if you had your employees buy in."
Pending
Maintaining relationships with multiple suppliers allows for flexible procurement of large quantities of goods (e.g., 7-10 pallets) using a dedicated box truck.
"I do have um three, four different companies. So, whenever they ready, they call me like Rose. I have a seven pallet for you. I have a 10 pallet for you. So, we do have a box truck. Yeah. We can fill Yeah, we fill out a truck and bring it, you know."
Pending
The business is being offered for sale at a multiple of 5 times its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
"The owner is currently selling it at 5x Ibida."
Pending
Adding a laundromat to the existing business could generate an additional $15,000 to $20,000 in monthly revenue.
"I do think that a laundromat here could bring in another 15 to $20,000"
Pending
Advertising and promotional videos can lead to a sales increase of approximately $1,500 to $2,000.
"they see a spike in sales of about $1,500 to $2,000."
Pending
The speaker's roofing company is projected to experience growth of 400% to 500%.
"Roofing company. We're expecting it to grow between 4 and 500%."
Pending
CBD and state-legal THC products are considered high-margin items within the smoke shop.
"They're selling uh CBD and uh state legal THC, which is a very high margin product."
Pending
Vape products are sold with a high volume due to competitive pricing, and not all competitors in the area offer these items.
"Yes. So, you're moving higher volume than your competitors are. Yes. And who who would you say your competitors are where you're located? I could think of everybody over here because I not everybody sells vapes or does everybody sell vapes?"
Pending
The current owners have operated the discount grocery store for nearly six years.
"So, how long have you guys owned um the the discount grocery for? Almost 6 years. Six years. Was this the first business that you and Malik owned or?"
Pending
Commercial properties in the area, without the business operations, have sold for between $500,000 and $750,000.
"just the real estate alone, no business sold for in the 500 to 750 range."
Pending
Estimating the building's value at $100 per square foot, for a 6,750 sq ft structure, results in a value of $675,000.
"You look at, let's say, $100 per square foot. That would take it up to $675,000."
Pending
A laundromat would only require approximately a dozen parking spaces to operate sufficiently.
"But, you know, a laundromat with a dozen parking spaces would be more than fine."
Pending
A viable business model involves an owner-operator, potentially financed with an SBA loan, living on-site (upstairs) and managing the downstairs operations.
"Their thought process is that somebody comes in as an owner operator with an SBA loan. They live upstairs and they run everything downstairs."
Pending
A $5 commission per vape unit sold could provide employees an additional $50 daily income if they sell 10 units.
"Because with those vapes, you could offer a $5 per unit commission. Employee sells 10 vapes a day, that's an extra 50 bucks in their pocket."
Pending
The business works with three to four different companies that proactively offer large quantities of goods (e.g., 7-10 pallets) to the owner.
"I do have um three, four different companies. So, whenever they ready, they call me like Rose. I have a seven pallet for you. I have a 10 pallet for you."
Pending
Frozen food, specifically Little Debbie products, are the top-selling items in the store.
"Our frozen food is the number one or I can say the Little Debbie is my number one."
Pending
The implementation of EBT payment processing has led to an increase in sales.
"So, their sales will are starting to come back now that you take EBT."
Pending
The speaker prefers to operate only a laundromat rather than a combined laundromat and grocery store business.
"I'd rather just run a laundromat than a laundromat and grocery store."
Pending