I generally support business minded people and encourage them ...

but this business i would say stay away... there is not enough market , plus waste damage may cost more than benefits....

unless, if you have robust plan to start with dry foods then once your ground settle you can add fruits and veggies

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

Quote:

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Originally posted by vkk03

Hello people,
With respect to above conversation, i understand the need the Grocery Home delivery by purchasing online.

I have product to support this. I just want to understand whether our canadian desi people will be ready to pay a delivery charge of 8 - 10 $ with a minimum purchase of 45$.

All start ups need a support, and this is some thing which requires a support.

Please post your comments.

Regards,
Vk

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Give free food http://www.thehungersite.com ||

Thanks Blue_P & Adam for your comments.

As per my Business idea the target customer will be only Indian Desi also groceries will be only from Asian groceries store. Also the price is going to be the same as in store, for frequent customers a free home delivery will be provided for every 15 / 20 purchase.

Here one key point is Grocery stores doesn't add HST/GST for the products that they sell in the stores. But if it comes under online business I would end up charging HST which is required to show it to CRA.

Based on it a basic purchase of 45$ worth grocery will be ended up with 45+HST+Delivery charge = 45+5.85+8 = 58.85$

-- Blue, I understand your concerns but as per my business idea even fruits and vegetables delivery also can be handled effectively.

Please provide your comments.

-vkk

Vkk: seems like you have done good preparation which is very good . Just spend bit more time on doing actual market research .

to my believe i don't see enough client or i would say enough demand .

I remember back to few years Metro used to do free delivery there speciality was for senior clients. but i believe they also have stopped it.

If you manage to add milk, bread and egg along with indian grocery then chances is higher but its lot of work with minimum profit.

Again, market research is very very important - ( seems like you have good contacts with grocery store or your family owns one so stocking shouldn't be a issue) , as per your confidence if fruits and vegetables delivery also can be handled effectively then you know what you are doing.

good luck .. if u run into finance let me know i can help you get funding (BTW: i'm not mortgage broker but i like to help entrepreneur using my contacts

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

How much area and which area you are planning to cover for delivery? What is the %/ of desis living there.
Most of desis are ready to walk in winters to buy stuff at cheap rate. You can do a small survey with sample of people in that area which u r willing to cover.

Quote:

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Originally posted by adamthorat

Quote:

---

Originally posted by vkk03

Hello people,
With respect to above conversation, i understand the need the Grocery Home delivery by purchasing online.

I have product to support this. I just want to understand whether our canadian desi people will be ready to pay a delivery charge of 8 - 10 $ with a minimum purchase of 45$.

All start ups need a support, and this is some thing which requires a support.

Please post your comments.

Regards,
Vk

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Yes Desi Senior citizens , who don't drive will be willing to pay $ 8 - $ 10 per delivery, especially in Winter..as the bus tickets required to go to & come back from the grocery store, will cost almost the same

They will only pay the delivery charge if the price of the groceries is competitive i.e its the same price or less as oppossed to other Indian stores or Canadian stores.

If the groceries themselves are more expensive than other stores & on top of it , you are charging a delivery charge ..you won't get any business

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DELHI INDIAN

Margins on groceries are razor thin. With the price of gas and cost of driver and truck etc..its going to be very tough.

Lot of times people are not at home and miss deliveries..this happens even with companies like Amazon , Wal Mart etc which also deliver groceries home now.

Grocery Gateway is another one..I think Longos owns it now..which does home delivery.

The desi market is just NOT there for this kind of stuff..lots and lots of competition from desi stores and also regular Canadian stores.

Advertising , Marketing , Logistics , Scheduling , Having an E Commerce website, dealing with return and exchange, perishable items, storage etc will add to costs and expenses.

Desi people don't even order pizza at home to save on delivery charges..that's how cheap they are

Lol !
I agree with adam. Better drop this idea.
Desi's are damn kanju's and no one bother paying the HST extra.
Grocery stores (Indian) make sure that they are there within 5 mins drive of the desi's. Where this is not met, there will always be a desi to open up a store.

People now shop only for basic indian items like dal, Indian soap, Indian sweets, Wheat, Indian packaged frozen foods at Indian stores. Rest they look at FB, Or No Frills or the local chinese stores. Your venture will be a flop since your objective is to serve Desi's who are Kanju's.

Also string hoppers, Biriyani's, idly's are being sold at cost price rates at Sri Lankan /Pak stores.

Please look at other items that you can do delivery, where the margin is high. Like wine / spirits to Gora's and Gori's or try inventing a low cost burger which can be supplied to the Gora families.

If you are in the Toronto area, have you seen the numerous buffets (Indian) that have declared bankruptcy in the first year of opening? Ala carte people are running the show.

Murali

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