The most important financial consideration that the management of a business has to make is deciding the best way to invest the funds available to them. It’s necessary to make sure you’re getting the most out of your cash and making the best decisions possible by carefully considering whether any investment you make will offer worthwhile returns for your business.
When it comes to shop fitting, this can sometimes be a tough call to make. A good commercial refurbishment can cost your business thousands of dollars, so you’ll want to be sure that you’re going to see adequate returns on this investment before you begin a project.
To help you make this decision, we’ve put together this list of five reasons that a commercial refurbishment might actually save your business money in the long run.
1. Increased Sales
The most obvious reason to invest in a commercial refurbishment is to boost your annual sales. When it comes to retail spaces, a good shop fitting service will make your store more attractive to your customers which may, in turn, boost your sales.
In fact, there are lots of anecdotal reports of businesses experiencing a turnover increase of 15-30% in the 12-24 months following a store fit-out. This is usually more than enough to justify the cost of the initial investment as, with these results, the fit-out more or less pays for itself within a couple of years.
Even if your store doesn’t see an immediate increase in turnover, you’re likely to see the benefits over a longer period of time, as the new fit-out may very well strengthen your branding and lead to long-term gains and increased customer retention.
A new shop-fit out can increase the efficiency of your business operations in many ways, which can save you money by reducing business expenses and thus provide a return on your initial investment via savings.
One way in which it can achieve this is by integrating energy-saving lights and other electronic devices in your business space. Switching to energy-saving lighting can reduce your electricity bills and your carbon footprint. This has the added benefit of making your business more environmentally-friendly and attractive to the conscious-consumer market.
A shop fit-out can also make your store more energy-efficient in other ways. For example, installing new windows and doors with adequate installation can keep your store warmer and make you less reliance on central heating, reducing your heating bill and saving you money over time.
In addition to making your store more energy-efficient, it can improve your efficiency in a more general sense too. For example, your store may benefit from updating equipment such as checkouts and barcode scanners to newer models, allowing manual tasks to be completed faster and potentially reducing the time your staff needs to spend on these tasks.
By rearranging the layout of your store, it may be possible to make the use of space more efficient, so that tasks such as store merchandising and cleaning can be completed faster and more effectively.
3. Fewer Repairs
Updating your old fixtures and equipment to new models will likely make them more durable and less likely to fall into disrepair. Whilst it might be tempting to cut down on the costs of a refurbishment by using old fixtures, this might not save you money in the long run as you’ll have to frequently replace this equipment when it becomes damaged.
Updating your equipment and fixtures is important for other reasons too. From a health and safety perspective, using old equipment may increase the risk of your staff or customers injuring themselves whilst on business premises. Loose screws, jagged edges, and damaged flooring can all be health and safety hazards.
Not only is this bad business practice, but it could also potentially lead to lawsuits if a customer or staff member was to be injured and pursue a claim. Refurbishing your store or business premise every few years will minimize this risk by refreshing the space and making it safer and more up-to-date.
4. Free Marketing
A typical business allocates a large portion of their funds to their marketing budget. This makes sense as your advertisements and promotional efforts ultimately drive sales and profitability. However, you may be able to save on marketing costs by refurbishing your store.
This is because your store itself can function as a marketing tool. A store fit-out could redesign the front of your store to make it more eye-catching and enticing for passing customers. This is often a better promotional tool than any billboard or poster could ever be.
Having a store refurbishment also gives you a great opportunity to do a full-scale ‘relaunch’ of your store. A relaunch provides the perfect promotional opportunity as you can market the relaunch event and drive new customers to your store, boosting sales and providing returns on your investment.
5. Deter Shoplifters
It might seem not seem intuitive, but refurbishing your store might actually help with loss prevention by helping you to minimize losses from shoplifting. The layout of your store can have more of an impact than you might think on how difficult it is for shoplifters to target. In some cases, changing the layout of your store can be more effective than investing in security personnel.
For example, changing the layout so that the more expensive items are at the back of the store can help to prevent grab-and-run-style opportunistic thefts. You could also utilize fixtures that make it more difficult for shoplifters to access expensive products, or increase the visibility of certain areas of your store by rearranging it so that your staff/security cameras always have a clear line of sight to every area.
Made Up Your Mind?
If you’ve already made your decision, and you feel that your business could benefit from investing in a commercial refurbishment, Oakridge Building Group may be able to help. Our team of professional shop fitters can help turn your design ideas into reality. Get in touch today to find out what we can do for you.