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  • Renting Shop Space

    Hi everyone, does anybody rent space in a shop and if so would you have any tips to give me.

    I have been asked to stock some items in a lovely little boutique and this will cost me 40 pound pcm. The space I get for this is a dresser about 2m tall by 1.5m wide. The shop is not really in a busy street but has been established for a long time. I only have to commit to 2 months at first so was wondering if this sounds reasonable. Any advice would be really appreciated

    Steph.
    http://www.etsy.com/shop/pilipalahandmade?ref=si_shop

    http://folksy.com/shops/PiliPalaHandmade

    http://www.facebook.com/pages/Pili-P...35963279769487

    http://pinterest.com/pilipala83/

  • #2
    Do you know I would quite like some advice on this also, because people ask me if they can rent space in the shop and I never know what to charge or how to handle their transactions. What are the appropriate charges and what do people expect you to achieve for them?

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    • #3
      Hiya,
      I rent space in a shop, its £25pcm for a shelf on a bookcase plus 10% of each candle I sell and I have signed up for three months.
      I think pricing varies because some I have been offered are free with a 30% commission.
      L

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      • #4
        This has always sounded backwards to myself.

        I stock products from lots of different manufacturers, and what I don't seem to understand is, if they like your product why not become a stockist?
        I've got around 4 stockist at the moment for my candles and I don't pay them for selling my candles. In fact, if one asked me to pay £40 pcm to sell in their shop the answer would simply be no...

        Perhaps because you may be a small company and the boutique is a small company neither can commit to large orders, however, I don't see this method being good for anybody other than the shop, who gets part of their rent paid and earn a nice commission.

        Personally, I would work out the financial pro's and con's of this. Does the 10-30% commission actually cover the cost of the candles, delivery and rent charges etc?
        David Bolger - CEO of Endless Green Group Ltd
        Retailer, Distributor and Manufacturer of Hobby, Craft and Pastime supplies

        Candle Making Supplies
        http://www.thatflamingcandlecompany.com


        Bolgers Woodworking Supplies
        http://www.bolgers.co.uk

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        • #5
          Well, I am sort of there myself really, because it could be a very expensive operation for the supplier at £40.00 a month or even £25.00, because if you get no sales in two months you racked up £50.00 which you could have put into supplies or google search advertising to get your website a higher ranking. I don't like to sell space because I feel I might be duping the person and I would not feel good about taking the monthly money off them if there had been no sales at all.

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          • #6
            I have only ever put my work into a gallery or shop on a commission basis. Anything else seems like daylight robbery to me. Hpw many other shops charge providers a monthly rent or stock their items? People will come to the shop because it has things that interest them not becuse it has nice wallpaper or something.

            pete
            "Where the spirit does not work with the hand, there is no art" ... Leonardo Da Vinci
            Facebook

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            • #7
              I am starting to think about this differently. At first I thought ok one candle a week would cover the cost but then thought well that 40 pcm would also cover a lot of monthly advertising as one person pointed out.
              http://www.etsy.com/shop/pilipalahandmade?ref=si_shop

              http://folksy.com/shops/PiliPalaHandmade

              http://www.facebook.com/pages/Pili-P...35963279769487

              http://pinterest.com/pilipala83/

              Comment


              • #8
                Hi, we are involved in two scenarios relating to this topic, both of which have been mentioned before on the forum.

                We supply our products at trade price to three retail outlets. We sell, they pay (on delivery if not before!) and then resell at whatever price they wish to set. We have no problems with marketing, theft, breakages, stock checking or the retailer going bust. Its simple, straight forward and works for every one.

                Second scenario is where we have set up a pop up shop for 3 months till Christmas. I own the premises and we charge £35 per 4 weeks per 6 ft space (about £1.20 per trading day). There's eight of us in there, all of whom knew each other beforehand and with no conflicting products. We have established a rota for manning the store, have the admin sorted for recording everyone's sales separately and we pay out everyone's share of the takings every week.

                Both scenarios work very well and I hope the above is helpful.

                David
                www.panachegifts.co.uk

                http://www.facebook.com/pages/Panach...60271863992797

                Twitter @PanacheGifts

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                • #9
                  I am involved in a similar scenario to Rose Cottage for the Salisbury German Market. Five of us, sharing the cost of the stall and taking turns to man it.

                  Pete
                  "Where the spirit does not work with the hand, there is no art" ... Leonardo Da Vinci
                  Facebook

                  Website

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                  • #10
                    I have space in a artisan shop which costs me £35 per month and 15% sales, and it does very well for me and I've never taken less than £50 in a month minus the fees and costs (and usually a lot higher, that was October). But it depends on the shops footfall etc.

                    Recently offered shop space in Westfield shopping centre, London they wanted £420 per month and 20%...for 35cm x 35cm! idn't take this opportunity up.
                    Please come see me on:

                    Facebook
                    Twitter

                    Or on my blog Candles From Home

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                    • #11
                      I was offered a third share in a shop (I think it was £25 pcm but it might have been more) but I turned it down because I work and wouldn't be able to share staffing duties (not quite the same as renting a cabinet I know). I also doubted I'd make enough profit to justify the rent. The lady who took on the lease decided to stock my candles anyway as she felt it might add another dimension and bring in customers. I am SO glad I did turn it down though. If it was my shop exclusively I could do what I want with it. But I don't really like the way she has the shop. She's filled it with stock that I don't particularly like and I'm not keen on the window display. I'm delighted that she is stocking and selling my candles but if I was sharing the shop duties with her I know we would disagree and tensions would creep in. I have candles in just 2 shops paying a maximum of 30% commission. I know retailers have to pay VAT and overheads but I'm not prepared to stand and work for pennies. I've turned down shops who want more than 30% commission. Having said that, committing for 2 months isn't bad at all, especially at this time of year. If you work out how many items you would have to sell to pay the 2 months rent and break even that might help your decision. Good luck.

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                      • #12
                        LOL, Westfield, if that is the new shopping precinct in Shepherds Bush you would need your eyes, 10 other pair of eyes and a security team. My Mum used to run a stall in Shepherds Bush Market, about 40 years ago and it was a somewhat run down area then, nothing has changed much in my estimation of it, I think you were wise to steer clear.

                        I also agree with the thoughts on sharing a store, I turned down an offer to take on a partner because I knew that the display the stock the business ideals etc. would be different from that which I started with and that would trouble me as, although a business woman, I want to work with an honest and fair approach, whilst not being taken for a ride by those around me and I don't suffer fools gladly, I want to listen to what the public say and take a decision on what I think is the way forward in my own mind, so having a partner wouldn't work I feel.

                        Trish

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