Own branch or indicated local reseller: the geographic decision that defines the next five years of the consolidated reseller

## Own branch or indicated local reseller: the geographic decision that defines the next five years of the consolidated reseller

September 2023, Tuesday morning, ten o'clock. Cristina, my reseller in Goiania for twelve years, calls me decided. "Patricia, I am going to open a branch in Anapolis. I already saw the spot, talked to the broker, and the rent fits my cash flow. What do you think?" Anapolis is 55 km from Goiania, 40 minutes by car. Cristina then billed R$ 32k/month at the Goiania unit, with five years of consistent data. Spot found: rua Manoel D'Abadia, commercial, medium foot traffic, R$ 4,200/month rent. I asked three questions. "How many times a month would you go to Anapolis to supervise?" Cristina answered twice. "Do you have someone there to supervise when you are not?" Cristina had already interviewed a saleswoman. "And the monthly average ticket for a Brazilian physical branch to break even — do you know how much it is?" Silence. The hard answer: between R$ 18k and R$ 35k/month. Anapolis in phase 1, with new saleswoman, would hardly hit more than R$ 12-15k in the first 12 months. Difference of R$ 3-23k/month to break-even — in an operation 55 km away.