Finance a fishmonger: find a loan

The fishmonger sector is experiencing a slight increase in turnover in value due to the increase in prices only. The prices of fresh fish keep increasing because of the difficulties of the fishing industry. Volume sales have been declining for several years. In 2009 the total turnover amounted to 642 million USD.

Food supermarkets capture most of the market share with more than 70% of it. Their strategy of control of all the sector allows them to propose a varied and complete offer at prices such that the independent professionals are incapable of competing.

In addition, consumption is changing more and more towards prepared or packaged specialties that have, in ten years, grown by more than 30% compared to the demand for traditional products. However, independent professionals can not align themselves with supermarkets that have products of this type in addition to their offer of fresh produce. Mistreated by the decline in consumption of fresh fish and under the pressure of overwhelming competition, independents are trying to organize themselves by positioning themselves more in buoyant segments: for example, dishes cooked with a catering activity.

How is the fish market organized in France?

How is the <a href=fish market organized in France?” width=”573″ height=”322″ />

The share of small traditional fishmongers is in continuous decline. The market being concentrated is organized around several poles.

  • Large stores hold a dominant position. Some of them even control the entire sector, from fishing to sales through packaging and the realization of prepared specialties and caterers.
  • Traditional fishmongers occupy increasingly large sales areas to meet the changing tastes of customers. They also have a catering business.
  • The fish market “fixes” markets, ports, and fishing areas is disappearing.
  • The traveling fishmongers meet in the markets. They are also endangered.

Open a fish shop: the constraints

Open a fish shop: the constraints

The professional must now hold the certificate of professional competence of fishmonger. The law on the validation of acquired professional experience also recognizes 3 years of experience in the sector as an employee or self-employed person.

This job is very difficult and requires good health and excellent physical condition; in particular the time slots are very wide with an early start of activity. The professional works in the cold.

As an artisan, the professional must register in the Trades Register of the Chamber of Trades.

The opening of a fish trade is subject to the common law of the retail trade as well as to the rules relating to the safety of public places. The texts are very restrictive for hygiene and specify the quality of conservation equipment, drainage systems, packaging, lighting, etc.

Strict standards also apply to the labeling of products where the date of the fishery and the methods of preservation used must be indicated.

In this sector only the VAT rate reduced to 5.5% applies because the products are not in principle intended for consumption on the spot and are not removed for immediate consumption.

The management of a fishmonger

The management of a fishmonger

The exercise of this profession requires a great know-how from the professional. He must also be a good manager. He will follow the evolution of his daily turnover. He will then analyze it by product range: fresh fish, prepared dishes, shellfish, so as to know the demand of its customers. He will be able to anticipate his purchases so that they correspond as best as possible to his needs.

It will adapt its orders to consumption cycles: weekends boost the sale of fresh fish, while sales of prepared meals are more important during the week. The legal requirements of freshness force to be very vigilant on unsold products kept in “tight”. For all these reasons, the professional tends to have zero stock.

A large part of the fishmongers are small or medium-sized companies that do not exceed 200 K USD turnover. To boost this figure, diversification is imperative. It can be either a diversification of the offer or a diversification in terms of customers with a sale to individuals, and also to restaurants or communities.

Finally, the large fishmongers offer up to 150 references, while for small structures they are about 60.

The highest expense item is purchases with approximately 60% of gross profit.

The rent is often high because of the quality of the location.

Personnel costs represent 7% of the result.

To succeed, the professional must manage the rapid turnover of products with a reactive purchasing logistics. Its daily supply allows it to have fresh products and to always be in tune with the tastes of its customers. It is preferable that these products find a satisfactory rotation with promotions if necessary. However, the promotions strategy must not weaken the already very small gross margin.

Low inventory facilitates cash management. Added to this are cash payments from customers and supplier credits.

Buy a fish shop: At what price?

Buy a fish shop: At what price?

The business of a fishmonger can be evaluated between 30 and 50% of the annual turnover, value which must be refined according to the quality of the location and the expected profitability.

Get a professional credit for creating or taking over a fish market

Get a professional credit for creating or taking over a fish market

In this risky market, only financially strong professionals can be maintained. the professional must have significant capital, ideally reaching at least 35% of permanent funds.

To succeed, they must have a modern point of sale and large enough to enable them to capture a large customer base through a diversified offer.

In this difficult sector, the creations are few. The premises must meet the legal requirements of hygiene, and especially be well located.

In addition, the customer is faithful to his fishmonger also the recovery can be accompanied by a significant loss of customers.

Start-up investments are very expensive. In particular, all refrigerated storage equipment and, where applicable, an insulated vehicle must be provided.

Thus personal contribution, professionalism and quality location make it possible to obtain a bank credit.

Leave a Reply

Your email address will not be published. Required fields are marked *