Start an Electronic Stores Franchise: Perfect for Gadget Lovers

26/09/2018 08:00 | Start a business

electronic stores

As a nation, the UK loves a gadget. As smartphones become even smarter and TVs get bigger and bigger, the need to have the latest electronic devices can be compulsive for many. And with the UK consumer electronics market currently worth over £50 billion, its a great time to consider buying an electronic stores franchise.

Consumer habits

With nine out of ten people in the UK being able to access a home internet connection, having good Wi-Fi is now a necessity, rather than a luxury. The way that people connect with electronic devices has changed vastly over the last decade, which Ofcoms 2018 Communications Market report highlights.

Here are some of the incredible findings from the report:

78% of people in the UK own a smartphone (this figure rises to 95% or 16 24-year-olds).
People check their smartphones on average every 12 minutes with 78% saying that they couldnt live without their phone.
Use of other gadgets is also on the rise with 58% of households owning a tablet, 44% of adults possessing a games console, 42% of people watching a smart TV, and 20% wearing a fitness tracker watch.

As much as Brits love to stay up to date with the latest gadget trends, the economic uncertainty that comes with the aftermath of Brexit is influencing consumer buying behaviour. There has been a move towards second-hand electronics being purchased rather than buying new. This allows consumers to still own a quality product but at a much lower cost.

Electronic store franchise opportunities

Many retailers specialise in the buying and selling of second-hand goods, including electronics. So, if you have a passion for gadgets and fancy starting your own franchise, then there are two types of electronic stores for you to consider.

Electronic stores online

Local Appliance Rentals is an Australian based business specialising in the rental of consumer goods, such as televisions, domestic electronics and furniture. Opening a franchise with Local Appliance Rentals will see you provide an affordable, debt-free way for UK households to acquire high ticket items for their home which they desperately need.

And the demand in the rental market is high. Since it was established, Local Appliance Rentals have developed a global network of 150 franchisees, some with rental books worth over £250,000. The model is simple too. Customers browse the website for the products they need and apply to rent them when they find what they want.

So, what does it take to succeed in this growing market? Well, no previous experience in the retail industry is required, but you do need to have energy, passion, and a desire to grow your franchise into a successful business.

Youll need to invest a minimum of £50,000 with the total start-up cost amounting to approximately £70,000. Theres no need to find any business premises as this is a home-based opportunity. Low overheads mean that profit can be made more quickly making this one of the most affordable, and desirable, hire franchises around.

Electronic stores on the high street

If its a physical, rather than online, store that youre after, you may be interested in buying a CeX franchise. Founded in 1992, this leading digital entertainment specialist has gone from strength to strength. Customers can buy, sell or exchange digital and entertainment technology in one of over 500 stores worldwide.

The reason for the rapid growth of CeX is thanks to the way that the electronic market works. Digital technology manufacturers are continually releasing new and improved products which are often in high demand. This means that customers are forever ditching their old models for the latest release. CeX has reacted to this by developing a marketplace in which customers can buy, sell and exchange products to ensure theyre up to date with the latest developments.

If youd like to become part of this exciting and growing brand, then youll need a minimum investment of £150,000 with £40,000 in liquid capital.

Cash Generator is another store that specialises in the buying and selling of pre-owned goods. However, in recent years, the franchise has also branched out into the provision of personal finance services. There are currently 220 stores across the UK, most of which are owned and operated by franchisees.

To start a Cash Generator franchise, a minimum personal investment of £80,000 is required. However, the total cost of investment will be more like £250,000. As a franchisee, youll be encouraged to grow your business which many investors have done and now own more than one franchise.

In return for your investment, youll get support with setting up your store and launching it successfully. Youll also attend a comprehensive six-week training programme consisting of classroom-based and practical learning to fully prepare you for running an effective and profitable business.

The Cash Converters franchise has many similarities to Cash Generator. Established in 1984, this retail franchise now has more than 700 stores, in over 20 countries. Cash Converters boasts over 200 units across the UK alone and has become one of the nations most recognisable pre-owned brand names.

As well as selling second-hand goods, the franchise also provides pawn-broking loans and personal finance services. The business works hard to maintain high standards across the franchise and understands how much its reputation depends on being perceived as a credible retailer and service provider.

To become a Cash Converters franchisee, an initial investment of £39,000 is required. However, the total investment needed to set up a Cash Converters franchise is somewhere in the region of £150,000 to £250,000.

To help get your business off the ground, Cash Converters will assist you to secure your business premises and provide all the necessary fixtures and fittings. Your investment will also cover the cost of stock and adequate working capital. Youll receive all the training and support you need to make sure your business is a success too.

Conclusion

The presence of electronic stores online and on the high street is only going to increase as Brits become more and more reliant on the latest technology. Becoming part of this growing industry by purchasing a franchise is a great way to enter the market with the backing of a reputable brand name.

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