EARNINGS SKYROCKET TO 600 PERCENT! This is the most profitable business in Serbia!

Bagel sales in Belgrade is the most profitable business venture possible in Serbia. Believe it or not, capital's small bakery rolls of 45 grams are charged 25 dinars on average, regardless of the fact it takes only 3,83 dinars for that roll to be produced!

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This means that those in this line of business have ROI higher than 600 percent. Owners of pastry shops all sing the same tune,  claiming their big sales and prices are justified by the good locations they are on and the brand they've built for themselves.

The manager of one of the most famous bakeries in the capital explained that the price of small rolls (20 dinars), is not at all that high and they don't feel they should lower the price.

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- A 45 gram roll costs 20 dinars and we believe this price is somewhat reasonable and not at all high. After all, we are at a very attractive and busy location, we have a recognizable brand and customers that can match our prices, so we have no need for the prices to drop. Bakeries, which have much lower rates do it as a strategy to attract people given they probably do not have any profit - pointed out the manager of this bakery.

Foto-ilustracija: Foter/Mercury Jane

After having asked her whether she believes it is reasonable and fair to sell a product at six times the price it actually costs, she rudely responded it's the house politics and added she forbids for the bakery's name and her name to be mentioned and then hung up.

However, that what she said wasn't always the case proves a little bakery on Zeleni venac, selling rolls at a price of 4 dinars, and the owner claiming he still manages to have the profit, regardless of such low prices.

-Look, for me to make 30 rolls, I need one kilogram of flour and half a liter of water. If I count in all other costs: the price of electricity, salaries for employees and taxes, 30 bagels cost me 115 dinars which means I spend 3.83 dinars per roll. It sure is a minimal ROI but I won't have it for anyone to say you cannot make a roll for that amount of money. Plus, when the customer comes in to buy a roll, he or she will surely buy something else, too.

Foto: Wikipedia/Anwar2

The President of the Union of private bakeries Serbia, Zoran Pralica, said that owners of bakeries have to calculate a lot in order to survive in the market.

- You will notice that every bakery has products sold at low prices and these particular items are there for the customer to get "hooked". Bakers are very calculated, because they know that with this inexpensive product customers will buy yogurt too and probably something sweet - said Pralica and added:

- There is no street with less than three bakeries in the chain. Therefore, the number of citizens should be proportional to the number of bakeries. This is how British and Italians solved the problem and they have no high price fluctuations any longer.

(Telegraf.co.uk)