We have all been confused on whether to run an online awards business or a storefront one. But really, which one is the better option?
Keep reading to find out the answer to this query!
Benefits of Operating Via A Store
When talking about the benefits of setting up your physical shop and operating via that, the list is endless. Before technology took over the world, storefront shops were the only means of business, and things went pretty smoothly. Even now, one cannot ignore the never-ending advantages this means of business comes with.
Here is how you can have the upper hand when selling your awards through a store.
Direct Interaction With Customers
The key to running a successful award business, or even any business, is keeping everything customer-focused. You can’t satisfy your customers’ needs if you don’t know what they want in the first place. And this is exactly where a storefront shop will help you.
Customers physically come to place their orders every day, giving your sales staff to interact with them. The sales staff can ask the regular customers for their feedback on specific areas, the things that they like, areas they want improvement in, etc.
Tends to Seem More Secure Than an Online Shop
We can unanimously agree that a physical shop is more helpful if you want to make the customers believe that you are running a secure and well-established awards business.
Physical stores will allow you to communicate your business story, making everything more authentic. Customers love this authenticity.
Allows you to Offer Personal Services
With online websites, customers can’t touch the awards, check their quality, or even see them for what they are. And all of these disadvantages may deter them from placing an order for awards online. It’s also going to be difficult for you to offer after-sale services.
Drawbacks of Operating via a Store
Everything has a bad side and a good side. The same can be said about operating a custom awards business via a storefront shop.
Let’s take a look at the cons of selling recognition products through a physical shop.
More Costly than an Online Shop
Especially after the Pandemic, property values have spiked like never before. This may benefit homeowners, but it isn’t much good news for shop owners, especially those that are paying rents/leases.
A good location is important for the success of your award manufacturing business.
And a high-end location means high rents. Moreover, there is the cost of maintaining the shop. You’ll have to pay for the decor, electricity bills, etc. It’s important to add value to your business, and this is usually done with the help of making your shop attractive.
And this isn’t cheap. And let’s not forget the wages of your employees. All these costs will have to be paid even if the business wasn’t earning an acceptable profit.
Less Convenient for Customers
When compared with an Online set-up, a physical shop lags behind when it comes to the convenience factor. This is where an online set-up will be of more benefit. Customers don’t like getting out of their houses to place an order. They like the comfort of their home.
You’ll Still Need to Have an Online Shop
The speed with which the consumer market is changing daily is pretty alarming. And most of these changes are due to technology. If you don’t move your custom awards business online, your business will stay behind.
You won’t be able to expand your consumer market. Therefore, to avail of these advantages, it is important to set up an online shop besides having a physical shop.
Perks of an Online Set-up
Running an online store comes with a variety of advantages that are too good to ignore.
Let’s take a look at what these are!
The Convenience Factor
The main reason why the e-commerce business is growing so rapidly is that consumers don’t need to leave their couch, and the awards will arrive at their door.
All they have to do is click on a screen, select whether they want a plaque, award, trophy, etc., add some personalized touches like engravings, and click confirm.
Impulsive Buying
Online sites lead to impulsive and irrational buying, and we, business owners, are not complaining. Consumers love having all the various options like whether to go for an acrylic theme or a wooden engraving etc., under their thumb.
This variety usually excites the buyers, and before you know it, they are logging off with a full cart!
Wider Customer Base
Unlike physical shops, your award business will not be restricted by geographical limitations. Via an online site, you can access any place and any customer.
Cons of an Online Set-up
An online setup, even with the never-ending benefits, is going to have its drawbacks.
These cons are
Concerns About Theft and Fraud
As everything is done online, including the payment, there’s a great risk of fraud and theft. With technological advancement, hackers have also improved their tricks. Therefore, there will always be concerns regarding entering your private information online.
Site Needs Frequent Updating
Even though less costly than operating a storefront awards business, the website will still need to be updated pretty frequently to keep the customers’ attention.
High Competition
Other award manufacturing businesses know the growing importance of e-commerce. Everyone does. And this awareness leads to a crazy amount of competition. And only the best can survive.
What’s Best For You – The Bottom Line
The real question here is, which one is better? Owning a storefront award business or maintaining an online presence? Well, with the recent trend in the consumer market for awards and trophy businesses, having an online presence is mandatory.
You can’t run a successful business without it. Therefore, invest in an online site. And as the business grows and there’s a steady flow of income, go for a storefront one too.
