Bricks Business Model:

A company selling products from a retail location.  Customers come into the store and make purchases.  The sales transaction takes place at the retail site and the customer walks out the door with the product.

 

The bricks model is the traditional way of selling products.  It is still an effective way but it comes with high overhead cost for rental and real estate tax.

 

 

 


Examples of the Bricks Business Model
 

Toy Retailer:  This company will generate revenues by selling children’s toys from a storefront located in a suburb on the east coast.  It will buy products wholesale and sell at a 35% markup.  Taxes will be charged for every product sold.  Customers do not have to pay any shipping cost  because they will take the item with them.  It will gain customer traffic by locating in a mall with high foot traffic.  It will entice customers to buy by offering in-store holiday discounts.  The target audience are mothers who frequent the mall in greater numbers than fathers.  It will make up for the any loss in profits by selling to a larger customer base it expects to see during the holiday season.


Barber Shop:  Generate income by locating the business in a busy downtown area that is close to a residential area so that customers don't have to travel far.   Offer promotional discounts for holidays and reduced price for children under a certain age.  Offer free service on opening day in order to draw attention to the business.
 


Dry Cleaning:  Generate income by locating the business in an area that is not being served by other Dry Cleaners.  Have a facility that is large enough to do all the work on site.  Offer same day and next day service.  Also target businesses such as hotels and hospitals.  Offer pickup and drop off services for businesses.
 

Restaurant #1:  Generate income by cooking and serving a specific type of ethnic food to customers at a low price.  Buy ingredients at a low cost from local suppliers and sell the cooked food at a 100% markup.  Offer alcoholic beverages. Keep the store open on holidays and weekends to attract more customers. Locate the store in an area that is not being served by other restaurants.  Cater to in-store group events.  Do not offer take out service.  Make it easy for customers to frequent the business by offering free parking.
Restaurant #2:  Generate income by cooking and serving a variety of the most popular food to customers at a low price.  Buy ingredients at a low cost from best vendor anywhere in the country and sell the cooked food at a 100% markup.  Offer alcoholic beverages. Keep the store open on holidays and weekends o attract more customers. Locate the store in a busy downtown area.  Make it easy for customers to frequent the business by locating within walking distance of most businesses.  Cater to group events on and off site.