Is Just Eat Eating Your Profits?
Just eat opened many doors for the takeaway industry, giving an instant, online presence. Creating a world where they could sell more than ever before. What more could you want? Well, less commission might be a good starting point. Only 29% of these business owners believe the commission they are charged is fair. The rate ranges from 10-13% of the order value. Potentially costing tens of thousands of pounds a year.
The question now is, what can a business do, to claw back the money back and still keep their customer volume?
There are three main options for businesses when facing this dilemma.
Use an eCommerce design tool. This is a tool that can be used to create an eCommerce site.
- Relatively easy to use.
- High likelihood of it not meeting the business need.
- Monthly ongoing costs for as long as you want to use it.
- Ongoing costs can easily mount up.
- No hardware options.
Use an off the shelf eCommerce product. These sites are ready-made with your business type in mind. You can choose to customise this for an additional fee.
- Relatively easy process.
- Ongoing support included in the fee.
- Well tested and therefore less likely to have defects.
- If you decide it isn't working, you can cancel.
- Ongoing costs. This can be cheap or shockingly expensive, you need to shop around.
- May not fully fit the business need.
- Customisation is an additional cost.
- Any installation is generally done by the business owner.
- Training of staff will likely fall to the business owner. Make sure you enquire with the company to see if they have guides.
Have a custom-made website/App
- It will suit the needs of your business.
- Expert advice.
- They will provide you with hardware.
- Installation provided.
- Training provided; ensure you confirm this with the provider.
- Ongoing support included in maintenance fee.
- All hardware is owned outright.
- Often costs less in the long run.
- If you pay for the build in full there’s only a small ongoing maintenance fee.
- The upfront cost of hardware and software.
- Takes time to build.
- Higher upfront cost.
- You need to make sure you are happy with how it works before completion. You do not want to be left with something you are not happy with after paying a large sum of money.
There are some great solutions out there other than Just Eat. You do not need technical knowledge. You just need to know how to go about it.
How do I get started?
- The first step is knowing what the solutions are, and now you do.
- Look at your competition. What are they using? Does it seem to be working for them?
- Forget the notion that you are not good with technology.
It is the company you hire that will be responsible for ensuring it works, trains you and maintaining it afterwards. You just need to know what you want it to do.
What should I pay?
This varies significantly. It depends on how much traffic you expect the site to generate, how many shops you have and what you are wanting. If you have one small shop and the people coming to the site are generally locals (therefore, relatively low in volume), it shouldn’t be excessive. It can range from £5,000-£10,000 including hardware.
If you get swept away with adding in more complexity and excessive hardware, the price can spiral.
I would forget option one, the eCommerce building site. You will not get anywhere. Most companies will offer free consultations, so arrange a quote for options two and three. See which one fits your budget and needs right now and decide from there. Some companies offer custom-made sites with 0% finance. Just make sure you are not paying over the odds to get it.
I'm confused by all of the jargon.
If you are looking around and it is all very confusing, then I would suggest looking on YouTube. There are often great vlogs that will break down what everything is or means.
If you are having a consultation with a company and you are confused due to jargon, ask them to explain further. Often, companies use this to confuse and impress you. This is a huge communication barrier. We are all experts in our field. If you ask them to explain and get more jargon, walk away. The communication is unlikely to get better as you progress into post-sale. Ideally, you want someone helpful, not pushy, who has you and your businesses best interests at heart.
I want everything they have to offer.
Do not let a company’s sales pitch reel you in. If they have showered you with all of the technical terms, shown you all of the business insights, analytics and hardware options, and it looks fabulous. Walk away! Take the information and the quote and think it over. You likely do not need analytics if you have one store. At first, you need to grow your online presence and then later down the road you can worry about analytics.
If you are not a technical person, this can all seem a little daunting. Even if you are, big business decisions such as this do not come lightly. Take time to think it through and do research.
You have taken the first step. You know you can grow your business in other ways. Now you just have to take the next leap.