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Opening A Franchise in Singapore? Know These 5 Things First

Starting a business in Singapore cannot only be expensive but also difficult. As Albert Kong, CEO and chairman of Asiawide Franchise Consultants that advised 650 franchise clients in Asia, once said: “Starting a business in Singapore is much tougher than other countries in the region especially when it comes to dealing with landlords and managing employees.”

1. SAVE LOADS OF MONEY FOR FUTURE EXPENSES

You must save for the franchise fee, renovation of the space, rent requirements, raw materials, and employee salary. Regardless of whether you are making a huge profit or not, the franchisor will request a share in your revenues.

For example, the franchise fee for a cafe is about S$50, 000 for a 3-year contract. The renovation costs may hit about S$100, 000 for only a 600 sq ft place. The rent of this 600 sq ft place costs about S$7, 000 a month. Additionally, the raw materials and employee salary for the first few months costs an extra S$100, 000. These costs heavily depend on your franchisor and landlord.

2. EMPLOYEE EXPENSES ENTAILS HIGH COSTS

Employees in Singapore are among the highest paid workers in the world. Not to mention, as an employer, you will have to contribute a given amount to the Central Provident Fund (CPF). Employees can leave you whenever they want and because of it, you will have to spend more resources to hire and train again. To avoid this, layout a 1-month waiver for employees that want to resign.

3. FAMOUS BRANDS ARE THE SAFEST

A household name such as 7-Eleven is your safest bet if you are franchising for the first time. First, the landlord will be more lenient to you as they know the “required look” of the establishment. Second, consumers tend to buy brands that they are most familiar with. In Singapore, the famous F&B franchises are Subway and Ya Kun Kaya Toast.

4. FOLLOW YOUR PASSION

Follow your passion so you do not feel the stress of costs too much especially during the first few months. If you are motivated by your happiness then, you are more likely to succeed in what you do. Furthermore, you may consider franchising a unique business with a popular brand to avoid the competition.

5. BUILD GOOD BUSINESS RELATIONSHIPS

It pays to have a good business relationship that is open and honest with the suppliers and the landlord so that if disagreement and troubles arise, you can settle it out in a friendly manner.

Image Credits: 드림포유
via Flickr

Sources: Business Insider Singapore

Sberbank Offers A Free Cat For Every Mortgage

How do you increase the likelihood of repeating a behavior? Well, Psychology and Operant Conditioning suggests that you must reward them. Something as simple as fun is the easiest way to change one’s behavior. Luckily, one Russian bank got the memo.

To make their clients feel interested and entertained, one of the largest Russian Bank called Sberbank offers a free cat with every client mortgage loan. It is also believed to boost the mortgage sales.

The bank’s special website will welcome you with a cat selector among 10 breeds including Siamese, tabbies, and an exotic hairless cat. A spokeswoman for the bank named Anastasia Vakhlamova told Bloomberg Businessweek that the Sberbank employees who kindly agreed to participate in the special project own some of the cats.

Some of the cats that you may loan are Lolly, Toffee, and Apricot—their names are as adorable as they look. Photos, description of the felines’ personalities and a video that shows how happy the first clients were when they received their cats are available on the web.

Image Credits: naql via Flickr

In fact, the heartwarming video has gotten over a million views. Check it out…

The good news is that the cat will be delivered to you in time for your housewarming party. Clients can take photos photos and play with the cat and generally have fun cat-related times. But, do not be too attached with it.

The only downside is that you cannot keep the feline for life. The terms that are laid out in an eight-page disclaimer on the bank’s microsite offer about two hours of interaction.

Although, the given time is enough as the cat is culturally believed to transmit good luck especially to the couples who are moving in to a new house. As the campaign promotion goes, “Order a cat for your housewarming, and bring happiness and luck to your home”.

Rude Service Make You Spend More on Luxury Goods

When it comes to designer and high-end goods, we want to have what we cannot afford. And, a sales person with a snobby attitude only adds the extra kick of exclusiveness.

A recent study by the University of British Columbia’s Sauder School of Business showed that customers who are treated with poor service are more likely to buy something as long as the brand is adequately renowned and luxurious.

The study entitled “Should the Devil Sell Prada?” had its participants to imagine that they are interacting with different kinds of sales associates. Then, they rated their feelings (i.e., desiring to buy or not to buy) toward the associated designer brands. Interestingly, participants reported increased feelings of want after being treated badly.

The eagerness to buy the item increases as the desire to be exclusive and to be judge positively sets in. This goes to show that people want to prove that they are capable of buying the luxury item and that they are worth more than the salesperson might think.

Darren Dahl, the co-author of the prior study, said that the outcomes were based on a combination of factors.

1. RIGHT KIND OF STORE

Image Credits: angelo via Flickr

In order for the “snob effect” to work, a sales person must accurately represent an upscale brand. For instance, being arrogant in a Gucci store works more than being arrogant in a 7-11 store.

2. RIGHT KIND OF LOOK

Another factor in whether or not a customer is swayed by a poor customer service is the sales associate’s appearance. The sales associate must play the part of a high-end brand ambassador decked out with their own brand’s product/s.

Image Credits: Steve wilson via Flickr

As the song by Jimmy James called “Fashionista” goes: “you have to show a look, have a look, or give a look.” Faces should be pleasing or attractive.

Hence before buying a designer item, rethink whether you can really afford it, whether you really want it, and whether you are trapped in the service’s “rude spell”.

Source: AOL

Be a Smart Consumer: Avoid These 4 Marketing Tricks

To be a smart consumer, you must spend within your needs and not over your means. Marketing or Sales Agents like any other businesses are using the power of persuasion to gain profit. I’m not saying it is a bad thing (personally I think it is a talent), but it may influence the consumers to buy something that is rather unnecessary.

Image Credits: Andrew Stawarz via Flickr

On that note, here are 4 Marketing Tricks you shall learn to avoid…

1. Foot-in-the-Door

It is a technique that starts with small requests in order to gain a “YES” with bigger requests. This works because of our desire to be consistent in our commitments.

For example, Fitness Studios will make you test their services first by giving a 1-week free pass before offering you their packages. Do you really need a $1,800 worth of Gym Membership when you rarely have the time to go?

2. Door-in-the-Face

In contrast, this trick starts with a huge and unreasonable request in order for you to settle with a smaller request.

For example, your friend asks you to donate $100 to a charity institution and you declined. Your friend will then say: “can you at least donate $10”. And, you will agree and comply. The truth is, your friend only intends for you to donate $10.

3. Low-Balling

Technique to purposely offer a product at a lower price than one intends to charge. This tactic will make you buy something at an affordable price before revealing the hidden costs (i.e., insurance, the phone casing, or batteries).

Image Credits: JOHN LLOYD via Flickr

For example, a Car Salesman offers you an initial attractive offer that you can’t resist but then later increases the price because of a “mistake in labeling”. Once again, Psychology dictates that it works because of our need to be consistent in our choices.

4. Brainwashed by Advertising

There you have it! As Warren Buffett once said: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1”. I hope that by knowing these, you will be able to make smarter consumer choices in the future.

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