"Box" Shop and Shelf Space -What's Your Views?
 

Seen many "box" shops sprouting out recently and many shelf-space-sharing concepts stores, allowing budding entreprenuers with limited budget a chance to be their own boss. I think in our own forum, we have seen 5-6 such shops. The retail scene is getting really exciting! :yippee:

For those who have rented box-space and/or shelf space, care to share with fellow forum members your views and experiences. Comments on location, concept, rental, sales support, promotion and advertising, actual business results in terms of profit and loss, product awareness etc etc are all welcome!

This should benefit those who are thinking about renting one :juggle: or those who are thinking of starting another "box" shop :laff: and will be useful feedback for existing "box" shop & shelf-space-sharing owners. :thanx:

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Anybody gt any feedback cause im planing to gt a box in bugis...1st time, so abit worried :(

Re: "Box" Shop and Shelf Space -What's Your Views?
 

i'm thinking of getting one at cactus farm. first timer too. any feedback? thanks :D

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Hi Lil,
The box u planing to take is it from Otaku house Iluma Bugis? The salesgirls there are very friendly and willing to serve customers. I've been with them for almost coming 3 months. Sales not bad, although it's quite quiet on normal days but sat, sun n holiday it's quite crowded. Maybe due to some shops not open yet. They now building an overhead bridge across from Bugis junction so may expect to have more crowd.

Re: "Box" Shop and Shelf Space -What's Your Views?
 

:clap: Yes, we need feedback like this and hopefully more will come forward and share with us. :yippee: One more point, for those who provide feedback, it may be also be useful to let us know what kind of products you are selling :thanx:

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Hi June, thk u so much for the feedback :)

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Just to share my views. I am currently selling ladies pouches at one rented shelf space.

I surveyed those "boxes" concept since end last year. My personal view is that "boxes" concept can look innovative from the outside, it attracts people into the shop to take a look, but it does not drive the buying spirit much.

Why I say that? : My personal feel again, when I position myself as a shopper, I walk into a "boxes" concept shop, I feel that the range of products is too huge, from trick cards to bags to whatever they can sell. As a shopper, I don't feel a theme or what the shop is trying to sell. The "boxes" are booked on first come first serve basis, so you can have the same range of products but at 2 different corners of the shop, which I feel a quite messy. Every "box" owner has the rights to decorate their spaces the way they like (to a certain extent), hence, I personally feels it makes the whole place worse.

The "boxes" are not big and also priced accordingly. That is, a eye level space will cost more then spaces that are higher or lower. In common sense, I believe no one wants to place their products at those odd levels. Due to the small restricted spaces, it is best if you are selling small items (like ear rings or cuff links.

All in all, I believe in communication and hard work is essential to make things happen. I don't believe in displaying my items somewhere and people will automatically pick up my items and pay at the cashier. It needs promotion from sales stuff to the shopper and I would encourage consistant communication with shop owner to understand sales situation from time to time. That is, if goods don't sell, why? Display location? Crowd? Product itself? Can the shop owner help me in some way? If goods sells, GOOD! How much stocks left? Which range sells better? When can I replenish fastest possible?

Once again, I hope my personal views helps to spark some ideas in what you trying to do.

Cheers... all the best.... and good luck....

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Our retail division also has a space in one of the "box" retail shops.

Based on our experience:
1. Traffic
Must get a box shop with good human traffic, it is of paramount importance... survey the shop during weekday and weekends

2. Target Audience
Must see who visits the shop, again hangout at the shop for a few weekdays and weekends. Some shops have students, housewives etc... are they your target audience?

3. Pricing
We realise we cannot sell too expensive items in these box shops... we think around $20 is a good price point

Thanks!
Ultimateworker

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Don't you guys think box rental is too pricey?

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Thanks for the fantastic feedback from ahpeow and ultimate worker. :yippee:

One suggestion for those thinking of renting a box/shelf space, be a mystery shopper yourself :laff:

Step into the shop, feel the environment, observe how the owner/salesgirl serves you, pick up a product close to what u are selling, and see how the owner/salesgirl promote and sell the item to you. Ask for other products, if they know all the products well enough, they will be able to address your needs.

My concern is if the owner also carries similar products as me eg accessories like earrings and necklaces, will they promote my items or their own :juggle:

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Usually the owner will ask to viewing your catalogue or samples first to evaluate if it clashes with thier existing customers. They will have individual advise for you.

Most likely they will still allow you to display so long the design is different.

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Can earn rent from me of course they will allow me to display :laff: Actually I'm not referring to products from existing customers but rather products from owners themselves. I know of some owners besides renting out the box/shelf space also have carry their own products. :juggle:

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Hi everyone,

I just got 4 boxes beginning of this mth selling kids wear but i'm considering to continue or not. I actually agreed with ahpeow that communication and hard work is essential to make things happen . It is very important that the sales staff knows how to push your items. Especially items that need to operate or match.Take for example a customer is looking at a tee-shirt, the staff must come in and tell the customer that it will look good if it goes with this bottom or that bottom afterwhich introduce her to acc etc etc..... I don't think the staff are educated in this field. Being friendlly is one thing but helping us the supplier to sell more is another. I personally feel that the boxes are more for small items like small bags, acc, cute stuff when u take and go. If i want to take the box, i will sell small items the next time. All in all i'm losing money till todate.:(

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Losing money :( Sorry to hear that.... but small items unless they are really unique and can command higher selling price, very difficult to cover rental. Anyone has experienced lost or damaged products while products are in the hands of box/shelf space owners?

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Hi Everyone,

I rented a box in the past. The shop has more than 40+ boxes. No theme at all. I, myself, as a customer walked in. I feel very giddy. So many boxes. So many items. All kinds of decoration. IS VERY VERY MESSY.

The only person who earns is the shop owner of the boxes. Even if 1 box owner stop renting, very quickly, another owner will take up the box. That's how it works. If not how the shop owner earn money? Especially those boxes with window panel, customers can not even touch and feel your products. They can only see from outside. That's when sales person comes in. May I ask something? So many items in the shops, ranging from accessories - collections - plushies and etc, how are they able to remember all the functions of your products?

To tell you the truth, most of the time, the salesperson will just say, "I don't know. I not sure". They won't really bother to remember all the products functions. I also suffered loss in renting box. These are my personal view. :roll:

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Hi Again,

I left out one more point here. Besides the rental they are also taking Deposit which is 1:1 thing & so call comm & POS charges. I know of one which is 17%and my current one is 13.5% . So do remember to add that into your cost. BTW, i'm going to remove my kids wear & put up Acc this weekend to see if it moves. I left with 12days to die so what the hack....throw what i hv and see how now. The fact is i also spend alot of $$$ to make up signage & props but it's not movvvingggg.........:(

Re: "Box" Shop and Shelf Space -What's Your Views?
 

hi there,
my product is damaged very often in one of those "box" shop. eventhough i gave them a display rack but they didnt put it properly. i always found my products wasn't in a proper place everytime i came down to replenish, resulted to bring home unsold cos damaged products. so sad lor...
and it also true that the sales girl cant remember all ur product feature and are too busy to attend all customers.
as the space i rent is pretty small, i can only display a few range of my products in order not to cramped my allocated space.
on the other hand, those "boxes" is a good way of advertisement, to introduce ur products to as many people as possible.
having said that, i didnt regret my decision renting those "boxes" but i certainly wont renew my contract.

Re: "Box" Shop and Shelf Space -What's Your Views?
 

12 days to die....dying a slow death then :p Oh but thanks for the reminder on deposit, comm, POS charges and signage & props. Any other costs we need to take note of? Hopefully the signage and props you can still use them when you move to other places.

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Just by putting your products in the box is a good way of advertisement only if your sales has indeed increased but if like what Takeshi said, there are many boxes and sales communication is lacking, customers may not even notice your products lor :(

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Ya lorx. 1 thing to add on. If you rent a box right, you can't put any of your contact no. name card or what so ever. They called it the conflict interest. If you want to put in your contact no or name card, you need to pay extra money or rent 2 boxes instead of 1! That's lyk OMG!

So even people buy your product, that's only 1 time transaction. They won't remember it again. Sad right? You also dunno who bought your items. You can't update them. You can't contact them. Is like, really putting items there to sell. Earn money. That's all. No customer relationship at all.

If you really want build a lasting customer relationship, box is not a good place. Flea and bazaar will be a better idea!

Yeah, they charge comm. for sales. Explaining that is for salaries, plastic bag, electricity, blah blah blah... A lot of crap. So renting a box is 1 cost. Comm. is another cost. Transportation fees to restock is another cost. Buy materials to decorate box is also another cost and etc etc. :(

Re: "Box" Shop and Shelf Space -What's Your Views?
 

sure? i saw in cactus, a lot of owners put their name cards

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Hahaha....yes dying very slowing & bitterly....:D no thanks, just need to share my views & pts that's all. Yup i sure can use back my props so it's not too bad lah...i think that's all with the charges. Will update when there's more....:)

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Ya, for cactus they allowed. Maybe some at Plaza Singapura don't allow. I can't say the shop name but I know you can guess. =)) Just went down to cactus today and talked with the boss. There is quite a potential there. I saw quite a few of my products selling there. Yet, at a sky high price. Pricing is above $20+. I am selling only $15 and below! I am not sure. I saw a long list of people queuing up for the boxes. Maybe is good?

I am still observing the crowd and etc. The rental is around 300+. Kinda hard. Expecially, there are quite a no. of boxes selling accessories. I heard from the boss that at central, it might be higher due to the shop rental. So I am still considering.

I hope this helps a little.

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Hi n how r u? what is the sz of the box? when u said 300+ is it for 1 box? maybe you can share more cos i believe there are more besides the rental. I actually wanted to take the space there but i went 3wks ago when the internal are still renovating. To me the building is ie a puzzle, i don't really like it when you go up from the escalator facing the OG building. I personally feel that the crowds are more for the yongsters so my kids wear will not work there. Anyway, i already give up the thought of putting my stuff in those boxes. Small & interesting things should be fine. :)

Re: "Box" Shop and Shelf Space -What's Your Views?
 

haha good for u then! :) i just signed up a box for OC yesterday. a bit rush and last min, so now busy busy with the set up and making of more handmade accessories :D

Re: "Box" Shop and Shelf Space -What's Your Views?
 

hi annies, each box is 50 x 50 x 55, but i think they can combine box. yah for kids wear, i also not sure if work there. my target crowd is teenagers and working ladies

Re: "Box" Shop and Shelf Space -What's Your Views?
 

300+ and that is only rental :juggle: So to cover rental alone, we need to earn at least $10+ a day. Sounds easy but so much competition from the other boxes and times are so bad :( If your selling price is $15, must sell a few pieces a day to cover rental, commission, cost of your products, transport and dont-know-what other expenses lor, otherwise how to earn a decent profit. Alternatively, go for special products and mark up higher but too expensive customers also don't want to buy :( Sianz... I think we end up helping the shop owner pay rental :mad:

Re: "Box" Shop and Shelf Space -What's Your Views?
 

hi all,

I read all your comments about box shops etcs.I'm very interested & intending to rent one of those but no ideas how's it likes.Hope to hear all your comments.As these feedbacks will help those intend to rent/intend to rentout.

1. Would like to ask those that had rented before whats the spaces given likes & roughly what prices range are they charging for?According to eye level or to sizes given.
   
   
2. What kind of locations will it be considered a good location & what kind of crowds to attract is the best?
   
   
3. other then REntal what others charges do they charge us & how much?
   
   
4. Like one of you mention in e forum,what happen if your products are damages what do they do &what u expect them to do?
   
   
5. Normally how much deposits & for minium how many months must we take just to rent?
   
   
6. Would you prefer a shop that sells che pa langs stuffs of any items & decorate in ur own styles or prefer a shop tat sells on one theme & decorate in one styles?
   
   
7. What happen if few boxes are all selling accessories but of similar types or differents types does it affects your sales?Which would u prefer.Would u still intend to takeup a box or what will the owner do?do they still rent out to you.
   
   
8. What are your ideal rental charges?Thru your experiences do you all give infos to e sales person for them to help u with your sales or they simply cant be bother to know?

Above are some comments i wonder after reading the forums.Anyone got anymore to add on?

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Hi Secret Garden,

That's a lot of questions...
but all good ones...
will try to answer as much to my knowledge.

Last piece of advice...
A lot of times, we see entrepreneurs under-pricing themselves
and thereby, working for free...
they don't consider their own time as labour cost...
if some of them were to work out the number of hours they put in...
they would probably be worse off than a mcdonald's crew...
(but if it's passion, that's another thing altogether)

As a guideline, always make sure you have 100% gross profit.
i.e. you sell for $2, your profit margin should be $1.
(what they call keystone pricing)...

Thanks!
Wee

Re: "Box" Shop and Shelf Space -What's Your Views?
 

i took the rent and divide by no of weeks. so i know how much sales i should make each weekend. i dun really bother with the no of weekdays cos weekday crowd at shopping centres.. really depends lor.

so after dividing by no of weeks, the rent is about $50+ to $60+ per week. then add the % of operation cost / commission. i roughly know what is the amount i need to break even.

so at this $50+ to $60+ rate, i figure out it's almost the rent that i pay for the flea markets and bazaars. just that i no need to be present in those warm flea markets & bazaars and carry my luggage here and there. so why not give a try? haha

and why i chose cactus in the end over all the other box concepts?

1st the rent is paid on a monthly basis. cashflow is easier on me. and i agree with the owner, who said that this is to encourage the tenants to come back to the store on a regular monthly basis - to pay the rent and to collect the payment cheque. this way we can check our own box ourselves regularly.

2nd i like the store better. really. shelf-concept store seems messy and have quite a few friends of mine telling me that their goods get damaged cos squeezed together with other tenants. box-concept store - others seem so dark and some look dirty. this is not the image i want to present to my customers.

3rd after talking to the bosses, i felt they are much more business savvy compared to the other concept-store owners. the amount of advertising, marketing, branding. how the terms are stated out clearly - when the owner explain, and in the contract. while i too am afraid that i cant earn my rental back, i believe that all businesses have a certain amount of risks lor. just that i take calculated risks.

good luck with ur biz too! :D

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Hi Wee, THANKS for the guideline! appreciate this, as lots of us here are not very familiar with retailing and how to price our products properly :laff:

Re: "Box" Shop and Shelf Space -What's Your Views?
 

I agree with ultimateworker that sometime entrepreneurs have to under-cut their cost when selling their items at 'box' concept as price is very competitive there especially for accessories. You may see many boxes selling accessories.

I did once for 6 mths, and didn't continue. The owner can charge quite high for eye-level box and if you did not negotiate with them, you might end up paying the highest rental among the rest (which is what happen to me:mad:).
I guess this is how the biz go, always bargain first and don't be desperate.

- I'm very curious here, does anyone know if Cactus collect one month refundable deposit at a said days (eg. 30,60 or 90 days).

- The rental @ Cactus is pay by monthly or one lump sum. Any $$ different if pay by monthly to one lump sum. Normally, the owner will charge differently to what I know.

:thanx:

Re: "Box" Shop and Shelf Space -What's Your Views?
 

sorry, just realise i type wrongly haha. should be $100+ to $120+ per week rent. divide by Sat/Sun 2 days = $50+ to $60+ per Sat/Sun. flea market and bazaar rent almost the same too

Re: "Box" Shop and Shelf Space -What's Your Views?
 

:eek: care to share which owner is that?


i just signed up with cactus. they collected only 1 month deposit from me. payment is by monthly.

so my first payment is 1 month rent + deposit of 1 month rent. then the end of month #1, then i have to pay 2nd month rent. then within 7 days of month #2, i get my payment of whatever items i've sold less the operation cost & commission

i found this model work better than the other box/space-concept stores, cos i no need to come up with the whole sum at one go (no need to resort to borrowning money :p) and will "force" myself to go back to the shop at least 2 times a month to check out my cubic.

hope the above info helps :)

Re: "Box" Shop and Shelf Space -What's Your Views?
 

I notice concept shops like Kuchiku and Otaku House caters to certain types of people, mainly youngster from early teens to mid-twenties. The itmes sold there are also catered for that purpose, attracting younger buyers. When I visited one of these places, I can't seem to find things that are for housewives, yuppies or even for younger kids. These places seem to market themselves to the young.

Anyways, my products don't work well at such places at all as people. Aromatherapy products need lots of educating to the consumers. By locating my things to such places to sell, the sales-assistants there won't actively promote them because they have other vendors' products to attend to. Some of these places don't allow you to put product specifications, pamphlets or even vendors' namecards to promote the products. I feel it's rather unreasonable. My products are rather niche. Imagine I put them there for one month without the staff to actively promote, don't you think they will collect dust? My products are consumables so needs more attention. :roll:

Re: "Box" Shop and Shelf Space -What's Your Views?
 

A bit more on pricing...
the reason for keystone pricing is simple...
if you consign your goods to other stores...
(usually 35% to 50%)
you still have a good margin to work on...

Thanks!
Wee

Re: "Box" Shop and Shelf Space -What's Your Views?
 

Hi,wee its a very gd informatives.But ask u ask its keystone pricing is 100% profit.If your costprice is already $10,100% will be $100 but its impossible to sell at that price how?how can we do to put the right price?

Re: "Box" Shop and Shelf Space -What's Your Views?
 

secretgarden,

I think 100% profit means S$20, if your cost is S$10.

Re: "Box" Shop and Shelf Space -What's Your Views?
 

oh isit?how u get that figure,cos i use $10 x 100% become = $100?

Re: "Box" Shop and Shelf Space -What's Your Views?
 

$10 x 100/100 = $10 (profit) + $10 (cost) ... so, your retail price is $20.