May 12, 2009

Independent Versus Franchise, That Is The Question?

A new retail store is about to open in your neighbourhood, and just like most of your neighbours, you can’t wait to barge in and check out the items on sale. The new store is a franchise of a large retail chain, and that’s why many are excited with its opening. But is it worth the wait? Would you be able to score items at lower prices? And is that new retail store giving you more products and services to choose from? You would be surprised to learn that despite the buzz about franchise businesses, they can’t provide lower prices and diversified options the way independent businesses do.

Despite the glitz and glamour of franchised business, it does not provide a lot of benefits to consumers like you. Yes, franchised businesses may be popular among consumers especially global brands like McDonald’s. Quality may be good, aswell. But there’s more than meets the eye on franchised business especially for an ordinary customer like you.

The most glaring disadvantage of buying from a franchised business is the cost. You cannot be assured of competitive costs when buying from a franchise. Franchise owners have to pay a lot of fees to their franchisor such as royalties, original franchise payment, and a fraction of their business profits. Some franchisors even ask for additional fees like advertising costs. These extra costs are then passed on by the franchise owner to customers like you. The book you buy from a franchised bookstore, for example, may be a lot cheaper in an independent bookstore since the latter does not have to pay for numerous expenses.

When you buy from an independent business, you can be assured of lower priced commodities. Independent businesses do not have to pay for royalties, advertising fees, and flashy packaging that add up to the prices of their products or services.

Likewise, franchised businesses tend to be less intimate than independent businesses. Since they are larger, franchised businesses cannot attend to customers the same way that independent businesses do. So don’t be surprised if you were ignored or served inadequately by service personnel in a fast food chain. This is not an uncommon thing. On the other hand, most independent businesses are known to be intimate with their customers. They can quickly respond to their client’s demands or inquiries, especially because most independent businesses maintain a small yet loyal customer base.

There’s also the effect of franchised businesses on our choices as consumers. With franchised businesses, there are limited choices for consumers. A large retail store carrying books and music may offer fewer choices compared to multiple small music shops and book stores. Imagine how wide your choices would be if your neighbourhood had several music shops and book stores compared to just one large retail store. The jazz CD you just purchased from an independent business may not be available from a giant retail store.

Castles in the Air is that experienced inflatable operator that offers bouncy or jumping castles for kids based on the Sunshine Coast in Queensland, Australia. As an independent, they have proven to survive despite the many franchise competitors and have a track record of servicing customers to the highest standards. For over 15 years, they have delivered a reliable service providing the most stringent safety measures and comprehensive liability insurance. The pricing is incredible value compared to its competitors too, almost cutthroat. They also give free bouncy castle tips to ensure that your event or party runs smoothly and the inflatable promise of complete satisfaction. Because of this independent factor, jumping castles have never been so cheap to hire on the Sunshine Coast!

Competitive costs, more intimate relationship with customers, and a better array of choices are just some of the advantages that consumers get from independent businesses. So think twice when getting excited about the opening of a large retail store in your area- you might be getting the raw end of the deal, after all.

Read more about jumping castles - inflatable promise issues.

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