DSF

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?

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

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?

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

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.

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?

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.

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.

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..

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.