Rental Base or High Commission/ Admin Fee Base

Alfa_rgt

Hi,

Which would you guys recommend, flat rental per month or high commission (50% or more) on your products? Got a contact for a small space in a prominent mall with ready-made display cabinets for costume jewelry entrepreneurs... Quite interesting concept...

meinteel

Indeed it is very interesting but I doubt the viability of such concepts esp. for small space. Personally, I would provide a mixture of flat rental + commission. Then again, the person owning the space would have to convince me about the viability of the concept and why I shouldnt be approaching the landlord to lease it from him directly as it would probably be cheaper and gives me more control.

Alfa_rgt

Hi Meinteel,

Yes, I agree. But to lease a shop direct from landlord would usually be of a longer lease term, maybe 2 or 3 yrs, and also the 3 months rental deposits + 1 month advance rental and renovation costs etc... It will definitely cost a bomb. A friend of mine spent more than 60k for all these costs just for a 90 sqft open concept kiosk in a popular mall!

What I mentioned is actually good for small time or new costume jewelry retailers who just want to try out their products for a few months in a popular mall before plunging in full time... It's even cheaper than renting a pushcart and also gives a much better image because of the nice display showcase provided within the shop... And best thing, you don't even need to mend the shop!

Anyway, I saw some of your posts regarding Prestashop shopping cart website... How's that working for you? Is the response encouraging for an online shop?

Cheers!