setting up in Sunny Beach

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balkankiwi
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Postby balkankiwi » Thu Jul 09, 2009 9:16 pm

monday1 wrote:
the reason why sunny beach was chosen as a possible location was due to the amount of new supermarkets there that apear to make a good profit but maybe this is not true.
The other fact finding I need to do is maybe this is the reason why nobody has tried it before as the market is to small. we need to answer as many questions now before its to late.
maybe those in the know could advise possible places for such a project for us to investigate


Not that I'm "in the know" but that never stopped me before ;) Look, Sunny Beach is, on the one hand, a seaside beach resort (summer months) and, on the other, a sizeable town in its own right. People live in the town year-round but precious few of them are potential customers for iconic British grocery lines.

You mentioned in your OP that this project has been 2 years in the planning but this is the first time you're learning about the demographics of Bulgarian Black Sea resorts?

7 Red's advice is sound. Take your venture to where the market is - such as Sofia which has year-round resident Brits. But you won't be the first ...

Good luck to you anyway. :)

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Postby monday1 » Thu Jul 09, 2009 9:31 pm

when we first started we paid a company to investigate initialy. and as you can imagine came back with very impressive figures. then getting the product there legally was another minefield as you cannot simply drive through any country without proper documented delivery notes.
It was a couple of months ago after a visit that I decided that the figures we had should be questioned and where better than on here. your replies have therefore confirmed my thoughts.
I not one of those people that ignore advise and plow on regardless ive taken aboard all your coments and thank you all for maybe answering the first question
why has nobody done it before answer to high risk

balkankiwi
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Postby balkankiwi » Thu Jul 09, 2009 9:46 pm

monday1 wrote:then getting the product there legally was another minefield as you cannot simply drive through any country without proper documented delivery notes.


Just on that point, I'd have thought it was the least of your worries. These days I mean, with Bulgaria being in the EU. It's a single market - goods of British origin have every right to be sold in Bulgaria. And as you're probably aware, there are UK-based export-oriented food wholesalers who will organise deliveries in Bg for you - at a price of course. And payment up front.

Also while I'm at it - I don't think corruption and/or red tape is a big issue. If you're doing dry goods, it's not a huge deal to get the necessary shop licences - perishable (eg meats) is more complicated but still doable.

Your critical issue is identifying a viable customer base and putting yourself where the punters are.

Cheers,
BK

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Postby ardleystar » Fri Jul 10, 2009 7:06 am

Rents in SB during the summer are sky high, anything upto 20K BGN pm for about 30 sm, so if you can negotiate an 'all the year round' deal you'd be better off. Regrettably, I doubt you'll be able to negotiate longer leases, virtually unheard of in SB. Places around Djannys restaurant would probably be cheaper than those around Kuban Hotel. There's a plethora of ordinary supermarkets in SB but, apart from 3ora, Mladost and Xanet, they're all seasonal. Don't think corruption would be a problem though can't say the same for the bureaucracy.

Good luck

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Postby monday1 » Fri Jul 10, 2009 7:30 am

Rents is the issue in sunny beach. how do some of these businesses survive year after year, I know most change owners every year but some come back year after year where do they get the money? crime?
there are clothes shops dotted around the main strip and side streets with no customers ever yet every year they come back. those dvd shops cant make huge amounts.
is cheap labour the reason they keep coming back. pay you rent then pennies for staff.
Is it really possible to make enough money in the 3 months to make it worth while. and if you take a seasonal lease do you have to move everything out at the end of the season.
theres a new nightclub on the strip with some retail space underneath, surely the owner new they could make their money before spending.

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Postby ardleystar » Fri Jul 10, 2009 9:22 am

Most traders in Sunny Beach make a good profit with many making huge ones. Over the years they've developed their businesses to a level of sophistication that would surprise the casual passer by. They've learn't what sells and where it sells, how to buy right, market right, stock right, discount right and train staff right. Most work 14 hours from 09:30 to 23:30, 7 days a week and no, they don't earn peanuts, they make very good money, half declared half under the counter. All premises are licenced and undergo regular inspections, though like bush telegraph, everyone knows when they're on the prowl and take whatever precautions are necessary to pass muster. Yes, at the end of the season all goods are cleared from shelves and it's the developer not the night club owner who knows retail space is always rentable, especially on the strip. Also, it's not 3 months but 6 from May to October though obviously the high season is mid June to mid September.

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Postby monday1 » Fri Jul 10, 2009 9:49 am

thanks for your feedback, I have asked all these questions before and your responses were far more useful than those of the marketing and pr companies so thanks everyone.
I feel we now have the information to make sensible decisions.
I think the information you have provided just doesnt go for what i planned to set up but for most people thinking of any kind of venture in bg, from c-store to bar owner people need to ask probing questions and not take things on face value.

one more things do you see what happened in the elections change much in sunny beach over the next 5 years for the better or worse

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Postby ardleystar » Fri Jul 10, 2009 11:18 am

Can't see many changes taking place in SB due to any kind of politics in Sofia. SB is governed by municipality of Nessebar and they've been lining their pockets with the granting of concessions, real estate planning permissions and property tax levels for donkey's years. The running of SB however, resides with SB management who just bitch to Ness Muni that they're bleeding hotels etcetera dry, which is largely true due to the fact that the hotels won't pay the utility bills because of electrical outages, resulting in lost revenue, thus forming a circle of conflict. Nessebar needs to buy out SB management ( SB wanted 30M BGN at last count - too much Ness Muni maintain! ) to improve infrastructure, not least the roadways, as todate, everytime there's a thunderstorm SB floods and in high season mosquitoes breed in the stagnant standing water. You'd think with all the tax revenues Ness Muni are gleening from the property taxes arising from thousands of additional off plans they'd be able to buy SB management, whatever the cost but it all comes down to politics and manouvering of power. I'd stay well away for the foreseeable future and keep your powder dry for more tangible opportunities down the line.


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