HOW TO KILL THE MALL ?

Firstly we will make a SWOT analysis of the benefits and shortcomings of retail culture over Mall culture.

ADVANTAGES OF SMALL RETAILERS OVER MALL:
You do not have to pay the sales tax (no billing).
You have lesser employees, so your budget is low.
 Your customer does not have to pass through billing, so your service is fast.
 You do not run big AC’s, so you save a lot on energy costs.
This goes for you to have low operational costs. So, you will not make much loss if you do not attract many customers, of course, you will not make profits either.

TECHNICAL ANALYSIS:
 Consider a mall spread in an area of about 1 acre.
 Cost of 50 employees: 50 * 5,000=2, 50,000 Rs. /month.
 Cost of running 20 AC’s per month: 20 * 3000= 60,000 Rs./month.
 Other lighting costs: 1,00,000 Rs./month.
 Initial set up costs (buying land and building the mall) : In crores (depending upon the city ).
 Cost of brain power ( MBA’s): consider 2 MBA’s. Thus net cost 2 * 25,000= 50,000 Rs./month.
Thus, anyone operating the mall has to pay minimum: 2,50,000+60,000+1 lakh + 50,000 =4,60,000 (as above ) to be in nil ( no loss no profit) condition.
Also, do not forget his marketing costs !!
Moreover, he has to take care of his set up costs because he is probably on LOAN !!!

DISADVANTAGES OF SMALL RETAILERS OVER MALL:
 You do not have a larger buying capacity.
 You have low marketing power.
 You cannot get advantage of bulk buying.
 You do not have good manpower like MBA’s, skilled technicians etc.

OPPORTUNITIES:
 When you have decided to kill the mall your only aim is to reduce its profit below 4,60,000 Rs. /month.

TECHNIQUES:
 Form your small retailer group at least having 10 small retailers.
 Buy goods in bulk with this group. So, your buying cost and mall’s buying cost will be almost equal.
 Now hit the panic button for the mall.

But how?

This is how :
 Reduce your price upto your buying cost. Here ‘upto’ means very marginal profit just to keep your electric and employee cost running. In this time forget your personal profit. You will be doing this only once for your lifetime to get rid of the mall.
 Malls must have pressed the ‘panic’ button by now. They will counteract with aggressive marketing. Because there is no room for them to give more discount than YOU !! because your buying cost and mall’s buying cost are equal.
 You do not have to be afraid of their marketing. They are just giving ads to increase their losses. Any customer will see their selling price and your selling price before buying. Just keep this point in mind “your selling price should be lesser than that of the malls.”
 They are indirectly marketing your product now.
 Maintain this condition for about 2 months.
 Malls sensing their defeat will start to withdraw. This is time tested technique (already taking place in several countries) and you will surely win in the end.
 Just think in your way, if you have to pay hundreds of employees and run hundreds of AC’s, pay bank loans without a penny in your pocket, for how long will you run ?

Remember, “Where there is a will there is a way.”
Moreover, “ United we stand, divided we fall.” (for forming retailer buying group!!).

Once the malls quit your way, you can return to making huge profit !!
Best of luck !!