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A buyback business with "low cost, low risk, and high return."
The buyback business is expected to grow even more in the franchise industry. Otakaraya has 15 years of expertise in buyback and has achieved "low cost, low risk, high return" with a low-capital, no-inventory-risk, and high-profit business model. In addition, various training and support systems are in place so even those without experience can feel at ease.
Estimated Startup Cost:Up to ¥10,000,000
Industry:Brand/Precious Metal
The reuse business, which converts unwanted items into cash, is less susceptible to economic fluctuations and is attracting attention as a growing business. The reuse market within the franchise industry saw sales expand from 1,210 billion yen in 2009 to 1,539 billion yen in 2013. Furthermore, the market itself is projected to reach 2 trillion yen by 2025.
This growth is partly due to the 2011 Great East Japan Earthquake. Following the earthquake, there was a shift in consumer attitudes towards secondhand goods, and sales increased significantly from that year onward.
This type of buyback business, which aligns with the needs of the times, offers a great chance of success and is a recommended industry for those considering starting a business.
Looking to start your own business? Worried about funding? Otakaraya offers a business model that eliminates the anxieties of franchise membership, allowing you to start with low capital and no inventory risk.
■ Low Capital Startup Possible
You can open a store in a space of around 3 tsubo (approx. 10 sq m) or even on the second floor or higher, keeping rent and interior design costs down.
■ No Inventory Risk
Purchased goods are sold to specialized exchange companies, providing cash as quickly as the same day. There's no need to hold inventory, ensuring stable cash flow. Furthermore, there's no need to go through headquarters during sales, eliminating intermediate margins.
By eliminating unnecessary processes and reducing rent and labor costs, high profits can be achieved. The quick flow from purchase to cash ensures you always have cash on hand, allowing for profitable operation from the moment you open. Another major advantage is that you can recoup your initial investment in about 6 months to a year.
Support and customer acquisition are also key to success.
■ Reassuring support even for beginners
No prior knowledge of precious metals or brand-name goods is necessary! Training is provided for each type of product handled, including precious metals training and diamond training, allowing you to learn in detail how to identify and appraise each product. If you feel unsure about appraisal or inspection, you can receive support from headquarters via a hotline or webcam appraisal.
In addition, before opening your store, there are pre-opening training sessions to learn customer service and appraisal, as well as in-store training to learn customer service and paperwork at an actual store, allowing you to open your store with the necessary skills.
■ Overwhelming customer acquisition power cultivated over 15 years of experience
We have frequent appearances on television programs, and our flyers, web advertisements, and TV commercials featuring Korokke are well-known. Using these headquarters-led promotional tools, we can appeal to consumers who feel hesitant about selling precious metals or visiting a buyback store, encouraging them to visit our store without hesitation.
■Silver Plan: For a single store contract
Franchise fee: 2,400,000 yen
Startup kit fee: 520,000 yen
Training fee: 1,000,000 yen
Property acquisition fee: 1,500,000 yen (approximately 10 months' rent of 150,000 yen)
Signage, interior, and fixture costs: 500,000 yen
Working capital (purchase funds): 1,000,000 yen
Total: 6,920,000 yen
*Property acquisition fees and other costs vary depending on the property.
*All prices are exclusive of tax
*Other fees may apply, and the information may not be up-to-date. Please be aware of this in advance.
Purchase price: 4.5 million yen
Total exchange amount: 7.1 million yen
Gross profit: 2.6 million yen
Total selling, general and administrative expenses: 950,000 yen
(Rent: 150,000 yen, Royalties: 100,000 yen, Advertising sponsorship: 100,000 yen, Flyer distribution costs: 300,000 yen, Miscellaneous expenses/utilities: 50,000 yen, Personnel costs: 250,000 yen)
Operating profit: 1.65 million yen
*All prices are exclusive of tax
*Other costs may apply, and the figures may not be the most up-to-date. Please be aware of this in advance.
■ Before Opening
- Market area analysis of the store location
- Creation of revenue and expenditure simulations based on market area analysis
- Loan support when using financing
- Property survey, property introduction, and property negotiation support
- Pre-opening training
■ After Opening
- Flyer advertising support (creation, distribution area consultation, etc.)
- Appraisal agency support
- Headquarters purchase support
- Large-scale purchase service
- Three area training sessions per year
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