nickshanagher

Most local shopkeepers are uncertain if they are making enough profit from their sales. Benchmarks are hard to come by. In the news, all we hear about are the companies that make vast fortunes - or lose them. Money buys you a little happiness, Nick Powdthavee writes in the latest issue of FT Weekend Magazine. "According to economist Richard Easterlin, part of the reason for this is that we care a great deal more about what other people earn than we do ourselves," he explains. "For those whose most basic needs are already met, money buys additional happiness only if it can lead to higher status in society, which is hard when everyone else is getting richer over time." Bob Phibbs , whose blog on the worst case of local marketing is fascinating reading, has worked out that the average American business makes about three cents on the dollar in profit. "Yes, that is a really good business in average times," he says. It would be useful to hear from UK co...

Earlier this week Sainsbury published some great sales results but chief executive Justin King was quick to add on a warning that "what is going to happen in 2010 is the reality that people feared in 2009". This is consistent with his comments we previously noted in September. What we don't know is why he is talking down the future - because he is planning for lower sales or because it will make his company's performance look better. On the balance of probabilities, it is likely that shoppers will have less money to spend and how they spend it will be important for local shops. For many shoppers, the problem with the big weekly shop is that they buy too much stuff and throw away food. The obvious solution to this is for the shopper to plan ahead and do a better shopping list and stick to it. The alternative is the local convenience store and top up shopping, which requires less planning by the shopper. If you believe you have a good opportunity to pick up sales from t...