Mattress creates network for high income

Picking up momentum in wave of consumer welfare, the MC Franchisor, franchise network of brand mattresses like Probel and OrtoSono, will inaugurate a new flag focused on an audience with greater purchasing power. The investment for the opening of the new units will be R $1,250,000. The new flag, named Dr. Sleep, will offer items with imported technology in partnership with the manufacturer of mattresses Plumatex. According to the Director of network expansion franchises, Carlos Guedes, the products will be developed for people with specific problems, such as back pain or sleeplessness, among others. Beyond technology and specificity of products, the franchisees of Dr. Sleep will receive different training those already offered by the franchisor. "The franchisee need not present any prerequisite in healthcare, but will receive a different training to be prepared to meet this customer," says Ghai. The first store of the new flag will be inaugurated in the city of Ribeirão Preto, in Sao Paulo, and, by the end of the year, the goal is to open one up in the city of Santos, São Paulo. It is expected that, after the opening, the 8% increase in revenue. The network operates in the Brazilian market for ten years and has more than 95 fraqueadas stores in the States of São Paulo, Mato Grosso and Paraná. With the two new units of Dr. Sleep, the retailer intends to exceed 13 open units by the end of the year, with six of them OrtoSono brand in Santos and other five with front Probel in São Paulo. To open a store, there is no need for prior investment. However, the cost of the franchise fee is R $160,000, and may be paid in instalments after the start of operations. "The franchisee makes a loan with Grancred, our partner credit company, and pay 15% of the operating profit per month to pay off the value," says Ghai. In addition to offering ease to open the franchise, the network offers the products contained. "The person offers the collateral, such as a property, for example, to be able to buy the products without having to pay for them," adds the Director. The percentage of the royalties is 15% of monthly revenue, which revolves around R $62500. And were these facilities, says Ghani, who made the company can keep growing even amid the crisis in the country. "As our stores do not require initial investment, the number of franchisees rose significantly after beginning of the crisis," he says. The high was 15% to 20%. The Executive points out that the products are manufactured by the partner companies and the network buys for values around 15% below the market price. "The profitability for our franchisee revolves around 22% to 25% depending on the profit margin crafted by him, since we don't make fixed price table." From 2017 to this year's projection that sales increase of 6% to 8%. Moreover, he expects the won come up about 15 percent of the stores to be opened by the end of the year. However, the retailer has not disclosed the number of consolidated last year nor the expectation for this year. Challenges and objectives the retailer still does not act by means of e-commerce, in-person sales only at stores and in shopping malls. However, there is a project for expertise in e-commerce that Ghafoor claims to be "a project a little distant". The idea is to seek, within a year and a half, be acting in the online market, with approximately 4% of initial improvement in sales. Although the company does not manufacture the products, the high of the dollar affects the pricing because the foam – raw material for the manufacture of mattresses-be imported and made available by only three companies in the world. GH emphasizes that constantly need to pass on the increase to consumers: "only this year had four average increases 8% because of this." However, the retailer can still ensure competitive prices for treat each other increases for the entire sector.