Milk-Agro, in an effort to be as close as possible to its customers, operates 192 own stores and more than 80 authorized stores. We talked with one of the first operators of an authorized store, Mr. Jozef Beňo, owner and executive of the company KOTVA.
Do you still remember the beginnings of cooperation with Milk-Agro?
Of course. Mr. Director Kundrát came to me with a question if I wanted to get involved. I was operating several of my own stores at the time and was open to anything that could move me forward. We started cooperating, although I did not have a clear idea of such cooperation. And probably the other side didn’t either, because cooperation is a living thing and needs some time to be adjusted to suit both sides. So it didn’t just come that it’s a good thing and hooray! But the willingness to agree was greater than the problems to be solved, and the result is an eighteen-year successful cooperation.
During that time, you built the KOTVA store network. How many stores do you operate?
I have been operating KOTVA stores for twenty years, eighteen of which in cooperation with Milk-Agro. Three stores are in Bardejov, the others are in villages around Bardejov, currently totaling 16. I employ 77 women in them; I deliberately say women, not employees, because all are women.
That’s a rarity, how do you manage them?
I learned to think like a woman (laugh), to see various situations through their eyes. And I appreciate what they do well, I constantly praise them...
What does it mean for you to have authorized stores?
In short, it means I have a contract with Milk-Agro, under which I purchase goods from them in an agreed volume, sell them at agreed prices, and if I meet the agreed conditions, besides the usual rebate, I also get special discounts and turnover bonuses. This changes ordinary cooperation into very close and mutually beneficial cooperation.
Does the authorized store have a defined visual appearance?
The contract also includes the obligation to maintain a uniform image, but this obligation is more a right than a duty, as Milk-Agro is a good and well-known brand and increases the store’s credibility in customers’ eyes. It also reminds customers that they can buy practically all SABI products in this store, just like in Milk-Agro’s own stores.
If the Milk-Agro brand "attracts" customers to you, do you have to pay for it?
Actually, we don’t have to; on the contrary, Milk-Agro can provide help under certain conditions in the form of supplying shelves, display cases, refrigeration equipment, and software. I don’t use these benefits much, but in principle, they are offered to authorized stores. It also offers us financing for advertising, posters, logos, interior adjustments, and supplies printed leaflets... Milk-Agro also considers authorized stores when establishing its own stores and places them so they do not compete with each other.
That’s really advantageous cooperation. But it’s still challenging to stay competitive against large multinational chains, especially in a region with lower purchasing power...
Very challenging, sometimes I feel like David against Goliath. We have to create and invent what helps us. For example, our stores were among the first small stores in the region to have a scanner; I had to learn a lot, implement software, constantly improve something. Almost every year we open a new store, train staff. This year we opened a new store in Gaboltov, which has only 600 inhabitants but has a post office, doctor, and school, so the catchment area already counts 3000 people... And the stores are divided into cells of 4; they have to help each other personnel-wise, technically, physically, and also share goods if one sells out and another doesn’t.
You also lectured about this at an international conference?
In November, there was the Intraco conference in Bratislava, where I mainly talked about prices and pricing. It is a very current topic because there will be great pressure on prices soon. The minimum wage and contributions are rising, energy prices are increasing, and a turnover tax was added, which we consider unsystematic and will be devastating for many if prices are not raised.
In such a situation, close cooperation between companies becomes even more urgent. We wish you and Milk-Agro even more authorized stores...
