Own a Mica
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 products, 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 products 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 full 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 products, 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.
Training and Support:
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.
What does this franchise cost?
There is a once off joining fee of R100,000 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.
The Mica joining fee importantly includes a basic IT system offering. This is a fully integrated financial system so no additional GL system is needed. The system is also capable of running integrated banking systems and supports a fully integrated loyalty programme as well as integration into our Value Added Services – Real People and RCS.
Please note the following:
- License fees are based on single store set ups. Multi-Store License Fees will need to be quoted separately.
- The offering includes a server license and 4 terminal licenses – 2 cashiers, 1 manager and 1 admin / receiving.
- The server license is R4,250.00
- The terminal licenses are R1,125.00 per license
- Installation of the system is R15,000.00
- Training for 5 people minimum is R9,800.00
As an additional benefit, Mica Support Centre will include IQ Payrol Add-On License Fee for the first year covering up to 20 employees. Going forward, the costs for the system are as follows:
- Additional licenses can be purchased @ R1,125.00
- The monthly licence fee of R75.00 per month per license covers the following:
- Version Upgrades
- Telephonic Support
- Email Support
- Remote Access Support
- Does not cover on-site support
- The IQ Payroll Add-On annual fee is R1,600.00 for up to 20 employees
The minimum requirements for supporting the system are:
- Hardware – this will be investigated on a store by store level and a full audit of current IT hardware will be done.
- ADSL connectivity for Remote Support
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 startup 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!
The Mica Advantage offers you:
- 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 include 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.
Who is ideal for us? (profile of the 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.
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.