General Nutrition Company Business Analysis

819 Words 4 Pages
For many college students, working in a retail job is a rite of passage. A position in sales, however, has many benefits besides just the income. Working in sales means daily interaction with the public, which teaches the valuable skill of interpersonal relations. A sales job also has selling quotas, demonstrating how to set and meet goals. Every company has a different background that influences the work environment, and the environment at General Nutrition Company is one that promotes employee camaraderie and superb customer service.

Working at General Nutrition Center is an opportunity to gain experience in multiple job classes at the same time. New employees will first be trained on how to use the register. For the first week or
…show more content…
General Nutrition Center stores typically stock a wide range of weight loss and bodybuilding nutritional supplements, as well as many vitamins, natural remedies, and beauty products, representing both its own brand as well as many third-party brands. GNC has a website in addition to thousands of retail locations. GNC stores start out as corporate, being owned by the company, until a potential franchisee shows interest in owning one or more stores. There is a flat rate for purchasing stores, and once bought the franchisee only has to follow the broad company guidelines and purchase products from GNC corporate. GNC does much better in terms of corporate profit on franchise stores, because they have margins on what franchisees pay for products and gets a small royalty on all GNC products …show more content…
The main goal for GNC is to achieve as high of net sales as possible. New employees will be judged on their average dollars per sales and average units per transaction. Once they have established themselves as good salesmen, their job is to increase their store’s net sales. There are three ways to accomplish this; the first is to charge more for each product, this increases sales short term but causes the store to lose customers in the long run because few customer will be happy with increased prices. The second method would be to sell more product to their existing customer base, but once again customers will not likely be happy with the increased “pushiness” of their store’s employees. The best option, then, is to increase the customer count. The deciding factor in the choosing one GNC over another is customer service, because all stores have relatively uniform prices with almost identical inventories This is why it is imperative that new employees focus mainly on customer service, so that they can build the store’s long term customer

Related Documents