Do you think pushcart rental rates at most major shopping malls are too high? - Page 4

noeclue

Definitely too high

Even rental in Harajuku is cheaper than Bugis Junction. On top of that, there is gross turn over % that you have to pay on most malls.

lovinglittleprincess

Hard to make nett profit.
After minus off rental,your own salary,cost of goods and other hidden misc costs...

figures are not very encouraging.

Sometimes i dont understand what we are really doing...

XavieraLin

For me I would love to try on push carts but the moment I see the rent I almost fainted.. It is super expensive and for people like me who want to know the taste of being a boss and how is it like having push carts then opening a stall..

__________________
Crystal Dollies(Handmade With Love)

Mystech

uhm.. do thoses fairs things? depends really on what you mean by a boss. if you think standing there and selling things are more impt, then, you need to rent. Or you can buy from overseas and either consign or sell to thoses standing there selling stuff.

EarthlyScents

Rental fees are ultimately subjected to the landlords so there's very little we can do about it. I do agree that it's ridiculous to rent carts at rates ranging from $3000 and above even when the traffic at certain places are high. Remember, high traffic doesn't equate to good business. And yes, another factor is the nature of the trade.

Let's take me as an example. I sell aromatherapy products and the likelyhood of my customers will be people who are expatriats and white-collar workers. If I put my business in an non-airconditioned environment or certain heartland malls like Tiong Bahru Plaza when the rents are about $3k and/or above, it may not work as well as my current location where there are lots of offices around and costing me just $2.5k a month (lock-in till April).

I do feel landlords can actually do more for tenants (especially pushcarts) in reducing rent in this trying time. Although given the location where I am situated, it's still very hard for me to break-even.

nighthawk

Hi all, I do agree with you that push carts rentals are really HIGH. Especially for startups, how can we afford 10k rental a month?!

Here's something to share to all : You might want to check out pushcarts at Leisure Park Kallang at an affordable and reasonable rental rate. Of course its not as busy as Paragon or Suntec but at least its a "store front" for you to launch your products. With proper marketing and strategy (sit & wait is not a strategy), i think customers will look for you wherever you are. (Just like famous wanton noodles or chicken rice)

Welcome any comments

EarthlyScents

That's not exactly a good place to start with but I should say is a stepping-stone. Heard from one of my former neighbour who sells handphone assessories at a shop there saying the crowd is almost equivalent of that at Great World City. But since the rental is reasonable, it's worth a try. Like nighthawk said, use strategy and proper marketing, it may work depending on your merchandise.

nighthawk

Hi Brothers and sisters of Pushcart forums,

Oh yes, i forgot to mention that the best part of it is that they do not have minimum "lock in" periods like most shopping malls. Can try it for a month and thereafter extend as you wish.

Some simple marketing to share-

1. Setup a good website to list your products, choose a proper web name, try not to use ebay or other associated names so that it makes it easy to remember. Be informative in the website - products, services, follow up services etc.
The difficult thing is the web content actually. With carefully chosen words, it can make or break your products simply because you are not there facing and talking to the customers. Your body language, tone of voice is more important than the words that come out of your mouth. THEREFORE, it is of utmost importance to use the right words. Tip: List BENEFITS, NOT FEATURES. i.e. aromatherapy products: (benefits)- sleep better, feel better, more energetic, gets rid of odours in room smell better. Dont tell customers about what chemicals are there inside (like yakult's L.aciddophilus in the product). they dun really care. they want to know how it can help them or solve a problem.

2. The website is a virtual shop front actually. You need to man it just like a real store or pushcart. you need to maintain it, answer enquiries asap and update whenever required. You can use this website address as your pushcart name to draw customers. How? they can now go online to pre order your products or simply to find out more about your products before coming down to your pushcart to make that purchase. (If you managed to search for what you want online, you'll go even if its changi's industrial park right?).

3. In this present time, business is no longer solely relying on walk-in customers. Its really about targetting at specific groups and reaching out to them. Of course, it doesnt mean that high traffic pushcarts are not good. What I am saying is that with high traffic + good marketing strategies = BIG PROFITS. BUT if we have to work on a tight budget on pushcart rentals, we defintely have to make the best of it.

*Will add to this list again*

Welcome any comments or marketing strategies to share!

awesom-o

wow.. nighthawk thanks for the insightful post. just wondering. what do you sell and what kind of retail experience do you have and where.

KittyMi

I agree that many people thinks that products at pushcart are at inferior quality or lower cost, hence expect the price to be cheap. But I notice pushcart scene has evolved recently and many stocks unique products that are not found in the retail stores and customers are willing to pay a higher premium for such things.