Mica Franchise for Sale
Mica is one of the largest hardware groups in Africa with over 140 stores nationwide and growing. Mica stores cover DIY, home improvement, building materials and gardening.
The set up costs for a Mica store is between R2500 and R4500 per square metre. There is a one off joining fee of R65 000 plus vat.
What does this franchise cost?
There is a once off joining fee of R65 000 plus VAT.
The set up costs for a Mica store range between R2 500 and R4 500 per square metre. This is made up of R1 700 to R3 200 per square metre for stock and R800 – R1 300 per square meter for fixtures, fittings, computers and assets etc. All initial capital for the set up process is due upfront for a new operation and the availability of this capital will need to be verified.
As a result of the range that is to be accommodated under the brand to facilitate a destination appeal to a customer, the minimum size of the store that Mica will accept into the family is 500 square meters of nett retail trading space (excluding offices) under roof.
A typical Mica Hardware store should achieve a minimum of R800 per square metre sales at a gross margin between 30% to 40%, this being dependant on the product mix and various factors, like differing volume sales of some categories at various levels of gross margin. This will not be the case if you sell large volumes of Building Material Supplies. The objective of the Mica brand is to deliver a return on investment in excess of 25% per annum.
Based on the initial turnover projections of the store, the member is to also allow an additional 30% of the value of the start up capital, as working capital. Unencumbered cash of 70% of the start up cash is required.
This cash flow value does not form part of the initial start up costs.
What do I get for my investment?
We offer you the advantages of being part of a larger synergy, while still allowing you to be independent!
- An established brand owned by the Members with a national infrastructure.
- A well recognised, strong brand, making your store a destination / landmark store in your region
- Access to a wide range of product; including Mica’s Exclusive Brand Programme which not only differentiates you from your competitors, but drives higher margin
- A comprehensive multi-media marketing strategy which provides you with the support your store requires ensuring its success
- The Mica Support Team will assist in the design, development and launch of your new store
- An array of support services – Buying, Marketing, IT and Business Development.
- Increased return on investment in the long term purely due to the Mica Brand Goodwill
- 28 years of experience in the market place
- A world class IT system focusing on saving you money
- A flat organisational structure which allows for online decision making! No delays.
- The financial strength of Mica in terms of inventory purchasing, critical mass and import alternatives.
- Tailor made retail outlets and solutions that suit both the operators and their specific market place.
- Mica offers a turn-key like service on how to build the brand and create a Mica atmosphere where people love to shop and constantly monitoring trends to stay at the forefront of all customers’ home improvement and hardware needs. Mica encourages the member to participate in the setup and follow through process.
- High level national, regional and local advertising campaigns
- Participation in Regional Meetings and National Executive Committee Meetings
- Mica provides a comprehensive brand guide that focuses on key areas such as Logo Specifications, Standards, Store Segmentation, Exterior Signage, Interior Signage, Store Types and Profiles, Branding Activities included all branded material such as vehicle branding and store uniforms.
Mica is truly the only group who has developed strengths in the “all encompassing” field of home improvement and DIY whether it be paint, building material supplies or general hardware. Mica has made it “their business” to be able to support members in all facets of the business and in different markets who have different demands.
One of the most important considerations for a retail store is the location. The Mica Group interacts with a number of expert personnel, property and market consultants that identify and negotiate the correct areas, locations and sites for the Mica
Business. Mica have a fluid database of sites, both short term and long term that are on the books from time to time.
Training and Support
How we train and support you
There is a team of Retail Specialists available at all times to give you operational support, guidance, suggestions and analysis of the performance of your business to assist with future planning for strategic direction, expansion and growth opportunities to maximize the retail efficiencies in your store, as well as ensuring you enjoy the total range of benefits of being part of the Group.
A service training programme is also offered covering subjects across the retail spectrum including:
- Retail Knowledge
- Cashier Skills
- Telephone Answering Skills
- Product Knowledge
- Service Skills
- And a number of other courses that are designed to add value to your business by improving the skills level of your staff and motivating your most valuable asset, your people.
Mica also outsource courses on Financial Management, Business Management and New Generation Leadership (ensuring you have a successor) through various colleges. The majority of these programmes are recognized and endorsed by the Wholesale and Retail SETA for NQF training in South Africa.
Why own a “Mica” franchise?
By using the power of recognition of the Mica Brand, your customers will associate you with the leading hardware group in South Africa. Independent research has consistently proven that Mica is top of mind for the South African public and attracts more customers than any other hardware retailer. The added value of being affiliated with the Mica Group is that your customers will experience world class service, having outstanding product, solutions and knowledge and offering expert advice and value for money.
By combining the buying power of more than 140 stores nationwide, Mica is in a position to offer you competitive deals on quality product in the DIY, Home Improvement, Building Material and Garden Markets. This allows you, as a member to be extremely competitive whilst ensuring a healthy margin.
Mica not only continues to build the power and pull of the brand through dedicated product promotions where they distribute over 1.1 million fill colour price and product promotion leaflets through South Africa every month, the business has a focused, multi-media brand development and maintenance strategy.
The product promotions in the business consist of carefully selected merchandise that is promoted at competitive prices whilst retaining a volume related margin for the store. The result is an increase in the number of customers to your store who have been enticed to experience your range of product, service, advice and potentially increase their spend in your store on that particular visit and in the future.
Mica keeps up to date with trends in the market place and as such is committed to developing all the facets of communication platforms and media including the new technologies like Mobile and Social Networking. Together with a dynamic website, the digital media, coupled with the product promotions and brand advertising through magazines and where possible radio and TV, makes a powerful marketing package for the members.
There are numerous other benefits offered like group credit card rates for stores, annual rebates for purchases through the Mica Group, Mica IT Support, as well as continual innovation and improvements made at a national level in areas that potentially add value to and reduce costs for the members and the Mica Businesses.
At Mica, we don’t just sell hardware, we understand it!
Who’s Ideal for Us?
Profile of ideal franchisee
Mica is looking for hands on entrepreneurs with 3 – 5 years retail exposure or who owns their own hardware outlet who would like to join and make use of expertise and support of South Africa’s leading hardware group.
There are currently no success stories.