iPhone/Android App Idea - Your Thoughts Please...

[Smiffy]

To cut a long story short, for my day job I crunch data for 1000's of Independent "corner shops" such as Costcutter, Londis, Premier, Spar etc

It got me thinking of an idea for an iPhone/Android App...

I would like some feedback on the idea please chaps...

Basically the app would be able to do the following (in phases):

*Locate your nearest corner shops and show them on a google map, with directions etc. Plus address and phone number etc.

*A barcode reader, to scan items.

*Compare prices on user selected items vs the local shops in your area.

*Be able to "scan and deliver" within an hour on a wide range of essential items. Inc Fags & Booze until the early hours.

So in a nutshell, you could scan the barcode of say 20 Benson, or bottle of JD or loaf of bread, pint of milk etc, you will then be able to see the price of it in all of the shops in your local area (Say 5 miles) you could then select the shop displaying the cheapest price, put the items in your basket, checkout and then have it delivered free to your door within an hour (Subject to min delivery amount, opening hours etc) Or you could of course just head for the store that is stocking the product you want, at the cheapest price. When you scan a product, any associated promotions at your local stores will also pop up, complete with a barcode ready to scan at the shop using your phone. Thus ensuring you always get the best deal locally. All this on your iPhone/Android/Tablet etc.

So not only is this giving you a different option to the likes of Tesco, Asda, Sainsbury etc. The beauty of it is you will know you are getting it the cheapest locally (compared to other corner shops) and you can have it delivered almost immediately, rather than waiting 24hrs plus using the big multiples delivery services. Of course you are also then supporting your local shops, which are a big part of our community and need the support, to fight back against the giants.

Theres plenty more, but I'll leave it at that for the moment.

Any thoughts on why it will/wont work?

Suggestions?

Questions?

Cheers chaps,
Smiffy.

 

[Mad Cyril]

What about essentials that don't have barcodes.

Like crack?

 

[Smiffy]

What about essentials that don't have barcodes.

Like crack?

I'd talk to Frank?

 

[TrueBlue]

I'd talk to Frank?

Got a company that I am very close with who can design this for you - PM me

 

[MK Shrimper]

Trouble is, most people know where their nearest convenience shop is and only use it to "top up" after the weekly shop - the occasional pint of milk, bread etc. There's a shop near me, and I really couldn't be arsed to walk to another if I knew they were doing milk for 5p less. And lets face it, the big boys will always be cheaper and people will always shop there.

 

[osymandus]

Trouble is, most people know where their nearest convenience shop is and only use it to "top up" after the weekly shop - the occasional pint of milk, bread etc. There's a shop near me, and I really couldn't be arsed to walk to another if I knew they were doing milk for 5p less. And lets face it, the big boys will always be cheaper and people will always shop there.

Im mostly with MK on this though having an app that tells you which local shop is cheaper is good , not sure they could compete with delivery regarding the large supermarkets . Theres a few scanner and locater apps already so maybe its about putting these together ?

 

[Yorkshire Blue]

Who would deliver this?

 

[Smiffy]

Who would deliver this?

The shop owner or his staff. There would be a min order, to make it worth his while of course.

 

[Smiffy]

Im mostly with MK on this though having an app that tells you which local shop is cheaper is good , not sure they could compete with delivery regarding the large supermarkets . Theres a few scanner and locater apps already so maybe its about putting these together ?

It's not about competiting. It's about giving the local shop owners more of a chance to survive!

 

[Yorkshire Blue]

The shop owner or his staff. There would be a min order, to make it worth his while of course.

Won't they therefore have to take on extra staff to do this?

They'll need a minimum of two staff working at all times (unless they are going to close the shop).

Even if it's only five minutes away, that's five minutes there and another five minutes back. So let's say ten minutes in total (ignoring time taken to for the staff to sort out their order, the customer to answer their door and sort out payment if you don't automatically deduct this). So one staff member can do six deliveries an hour. Minimum wage is what about £6 an hour, so the shopkeeper will need a margin of £1 per delivery to cover his costs if the scheme is used to capacity, which is an unlikely assumption anyway. For that reason, I'm out.

 

[Smiffy]

Won't they therefore have to take on extra staff to do this?

They'll need a minimum of two staff working at all times (unless they are going to close the shop).

Even if it's only five minutes away, that's five minutes there and another five minutes back. So let's say ten minutes in total (ignoring time taken to for the staff to sort out their order, the customer to answer their door and sort out payment if you don't automatically deduct this). So one staff member can do six deliveries an hour. Minimum wage is what about £6 an hour, so the shopkeeper will need a margin of £1 per delivery to cover his costs if the scheme is used to capacity, which is an unlikely assumption anyway. For that reason, I'm out.

Thanks for the constructive criticism YB.

Firstly, I would say 90% of all Independent stores are family owned businesses. Which have several family members working for the business. Either with no, or little wage. So your assumption that any stores offering a home delivery service, would need to employ extra staff is unfounded in my opinion. Anyway, even if they did have to employ extra staff, then that surely would be a sign that the delivery service is a profitable one for the owners no?

With the addition of a minimum order amount (set by each individual owner. Say £20) that would ensure that the delivery service they are providing is a worthwhile and more importantly a profitable one for them. With a margin they are happy with.

If there is a need for late night deliveries, particularly at weekends and particularly for fags and booze. Then it may even persuade them to extend their opening hours (for delivery purposes) and tap into a market, that otherwise would of been untouched by them...With the change in licensing laws, it is quite possible for shops to offer a 24hr alcohol delivery service now. Of which there are many thriving ones, in the big cities. I'm not saying it would just be an alcohol/fags service, but I wouldn't be surprised if these proved to be the most popular items for delivery.

There would also be the option to pay via the app, using a card (with a surcharge) taking away any risk, in terms of not being paid. Cash on delivery will also be offered if they wish to go with that option instead. Entirely up to them.

 

[BaileytheQuitter]

So for this app to work you would have to visit a shop and scan the code or the codes would be available online?

There seems something a bit pointless about going to a shop, walking around scanning the items (which would look a little strange?) then going home to order.

An app which you use to enter your shopping list, which is then compared in local shops before being displayed might work better?

I'm not sure if I would go to SPAR just to check the prices and then come home to book from the co-op.

 

[Smiffy]

So for this app to work you would have to visit a shop and scan the code or the codes would be available online?

There seems something a bit pointless about going to a shop, walking around scanning the items (which would look a little strange?) then going home to order.

An app which you use to enter your shopping list, which is then compared in local shops before being displayed might work better?

I'm not sure if I would go to SPAR just to check the prices and then come home to book from the co-op.

Haha no! :hilarious:

The idea is you either scan the barcode of your item/s at home (When it's run out or nearly) or you can do a text search for it on your phone!

The same as the Tesco App. The difference being it will then compare the prices of your items, against your local corner shops. Essentially showing you a local basket comparison. And you can get it delivered free and within an hour!

 

[osymandus]

It's not about competiting. It's about giving the local shop owners more of a chance to survive!

Actually my point was more along the line of YB's . It would still come into competition as so many super markets now do one line delivery , and as YB points out the extra cost of delivering or extra staff .

I still like the idea of the app though :D.

 

[Napster]

It would be a massive investment, and you'd need to do serious investment in marketing - corner shops won't do more than put a sign up.

Have you looked at pricing? How much would you charge to make profit? Would people necessarily pay for what is just a price and delivery service which can be done by other supermarkets (who are already branded)? Who is the market? It's a nice idea, but I think it needs more substance.

If it were my idea, I'd do proper market research; then pilot it locally.

If the corner shops buy into it and the locals see the potential, and are willing to pay for the download, and they continue to use it, and you can keep the info up to date...

I think personally it's a lot of work for little real margin.

 

[Hotman]

It would be a massive investment, and you'd need to do serious investment in marketing - corner shops won't do more than put a sign up.

Have you looked at pricing? How much would you charge to make profit? Would people necessarily pay for what is just a price and delivery service which can be done by other supermarkets (who are already branded)? Who is the market? It's a nice idea, but I think it needs more substance.

If it were my idea, I'd do proper market research; then pilot it locally.

If the corner shops buy into it and the locals see the potential, and are willing to pay for the download, and they continue to use it, and you can keep the info up to date...

I think personally it's a lot of work for little real margin.

Few more practical issues:

1) not enough margin for the retailer. Takeaways can offer free delivery because it's far higher margin - typical off-licence is 10% net profit margin, competing with supermarkets who operate at 10% gp margin. Add the fact that they can't buy booze cheaper than supermarkets sell it at from the cash and carry, but can't buy the volume at supermarkets, and they are on a losing battle before they offer free delivery.

2) of course this doesn't happen, but if the shop was tempted to take cash in their pockets rather than the till, they probably wouldn't want an audit trail of this happening.

3) how would you generate cash from this? the service is all well and good, but someone has to pay. Not enough user scope IMO for advertising, and margins too low for for a subscription service (like just-eat). Customers won't pay until proof of concept, and even then I'd imagine a large percentage only ever download free apps.

4) morally, (and possible legal issues) is it right to offer delivery of age restricted products? Will you be in the **** if a 15 year old orders 20 bensons, a couple of bottles of white lightening and a copy of razzle?

Sorry to rip it apart mate - there's something there, but can't see who will pay for it...

 

[Cricko]

What if for example one corner shop does milk 5p cheaper than another who in turn does cat food 5p cheaper than somebody else....and yet another undercuts yet another shop on say bread....how would one shop be able to provide all these items the cheapest in the area...you wont get a whole basket of requirements from one source at the cheapest price surely? It seems to me without ****ing on your chips Lee this is what the giant supermarkets already do, albeit because people use their favourite shop or are to lazy/busy to compare to much.

 

[Smiffy]

What if for example one corner shop does milk 5p cheaper than another who in turn does cat food 5p cheaper than somebody else....and yet another undercuts yet another shop on say bread....how would one shop be able to provide all these items the cheapest in the area...you wont get a whole basket of requirements from one source at the cheapest price surely? It seems to me without ****ing on your chips Lee this is what the giant supermarkets already do, albeit because people use their favourite shop or are to lazy/busy to compare to much.

If you are buying just one item, then you will find the cheapest option locally and you can go and get it.

If you are buying more than one item, then it will compare on the total basket price locally.

So for instance if you want:

Milk
Bread
20 Benson
Mars Bar
Butter
Coke
Eggs

It will tot up the price of that lot in each of your local shops and show you the basket differential. So you will still be saving overall, even if one or two individual items are more expensive than another shop.

 

[londonblue]

I already have a barcode scanner courtesy of Google.
To deliver you would need all your local stores to buy in to this. If you can manage that then fantastic, but I think it would be difficult.
I know where my convenience stores are, but knowing which is cheaper would be of use.

 

[Hotman]

I think that also people appreciate the price/value matrix - convenience stores charge more to maintain margin due to lack of economies of scale, etc - but the intrinsic value is in the name - convenience...