A scary prospect....?

[Lee]

A friend of mine (yes, really!) is considering opening up a market stall, he sells authentic autographed pictures and soon to be canvas
products...the cost is approx £300 total per week...........on the face of it, to me, it seems unreasonable, but when broken down, using
top line figures, perhaps it isnt too bad...

Cost of unit £300 p/w
Avg ticket price £25 ea
Need to sell 12 a week to pay the rent...not including cost to get the stock ready to sell, but his cost are fairly minimum to be honest, but even so I think if he sold 20 items a week he'd be in profit, anything above would be profit/wages etc..

So, to those guys that have already taken the plunge, is this a scary prospect, or quite typical costs to run a stall/unit etc, and therefore have a good chance of surviving?

[John G]

£300 per week he could have premises for a lot less than that - seems steep.

[Justin]

I guess it all depends on the footfall. I rememeber working on my first real business plan and stating that I only need to sell x number of T-Shirts to break even etc. In reality selling 20 items a week may not be that easy in what could be a somewhat specialised area especially if its the type of market locals visit frequently...how often would each customer return? Will he be selling anything else? Mugs for example?

[jennywren]

Is in doors or a outdoor market, if its outdoor the weather has a effect, indoors markets are slowing being charged rates is this included as this was a factor in us moving, it was cheaper to move into a shop when the rates got added

[John G]

No rates are applicable this year, or last, for anything under approx £6000.00, rateable value, so if its a small unit you wouldn't be paying rates.

[Lee]

I believe the £250 plus VAT is for everything - its indoor, so it includes facilities, power etc..... footfall in my experience never seems that busy, but there are a lot of traders who have been there for years.....so I guess something must be happening...... He is planning on selling other items too, related plus other local bits and bobs... Like you, I thought the cost was alot, but then I thought 20 items a week doesnt seem that much... but as I say, not much experience in that - what do you guys typically sell from sim environments?

[John G]

Still, a yearly figure of £15600.00 - got to go some to cover that + wages. He'll cut that by well over half if he got a small industrial unit.

[mrs maggot]

if he needs to sell face to face he needs that type of premesis, but i would consider seeing if there was another business that might share - ie a sports outlet, there are still some privately owned and the two could work well together, the price seems very steep for indoor market - is it with "inshops" - does it also give him insurance etc ? some of them do.

my unit is £260 per month with building insurance included, i dont have rates to pay (although they sent bailiff round for non payment - go figure they wanted me to pay it and then get it credited back !!!) i have to insure my business, vehicle etc all on top of that, then electric which is a killer at business rates so i tend to press a lot at home.

[Lee]

the market is just a market but it is in the middle of two popular shopping streets, but I have never seen a lot of traffic.. Everything is inluded in that price except he pays his own insurance... he does need a retail environment as he does a few bits online, but he believes his items will sell better face to face... still seems too expensice to me really, certainly as a first store..

[jennywren]

The good thing about the market, if your trying out your wares you are not tied to a lease and generally a week notice that is required. possible if it goes wll as he hopes then he might move into other premises. I think its smart move. I think most small business try out somehow in a small way to test the market before they go bigger.