ACT-O-MAT is an acronym for Acceleration to Maturity – -  Designed to Assist  Small Suburban and/or  Township Traders in Disadvantaged Suburbs, Trading Nodes, Spazas etc.

The reality is that the majority of these traders are faced with

• Under-capitalisation.
• Lack of access to finance from the formal sector
• Exorbitant & unaffordable loan rates from the informal sector and micro-loans
• Lack of interest & acknowledgement by the formal sector
• Lack of education and/or formal training that does not allow the principals of these outlets to present a business or marketing plan.
• Lack of Purchasing Power/Muscle
• Living day-to-day
• Unsustainability

Under-capitalisation leads to

• Under-stocked shelves
• Inefficient Procurement Practice
• Over-priced stock
• Reduced turnover/profits
• Increased selling prices
• Loss of business
• Customer dissatisfaction.
• Failure of business (unsustainable)

Although these traders are patronised by their local communities it is generally a patronage of convenience as opposed to one of store, product or brand loyalty. By enabling these outlets to have sufficiently well priced & varied stock levels will in most instances improve customer loyalty, increase turnover and profitability/sustainability

Integral parts of ACTOMAT

• REDS conducts Due Diligence
• REDS Together with the Principals of the outlets to research a possible new product mix – meeting the demands of their community
• Purchase New Products in Appropriate Quantities
• Sales promotion to promote the renewed “life” of the outlet – correct stock/ product mix in line with the needs of the community.
• Better Prices through Better Buying
• REDS feels that the ACTOMAT Beneficiary should be an Active Community Member, and as soon as cashflow permits must start a process of “Giving Back” by means of a soup kitchen and/or feeding scheme however modest, with appropriate REDS support. This also forms part of the sales promotion aspect with the Trader “getting nearer” to his client base.

Generally these outlets are in high traffic areas where there is huge buying potential. Also in these areas there appears to be a proliferation of what we term “ME TOO” shops that are all selling the same/similar products and/or services at the same/similar prices

Implementing the ACTOMAT Programme will

• Ensure a Better Buying Practice
• Create Better Awareness of the Outlet
• Create an Awareness of the Available/Improved/Changed Range of Products
• Better Customer Choices
• Improve Customer Loyalty
• Increase turnover
• Boost profitability and sustainability.

………. read about Project Stitches

………. read about Project Hout

………. read about MILO Learning Programme