Weigh These Criteria When Selecting Retail Premises - Part Two
In part one of Weigh these Criteria When Selecting Retail Premises we dealt with the framework to selecting premises; today we examine the dollar and dime criteria that could go a long way in determining the success of your retail venture.
The dollar and dime criteria The Lease Your lease for the premises will have a major influence on your success and future business aspirations and results.
Here is a heads-up on what you should be looking for.
1.
The longer your lease period the lower the proposed rent payable should be.
2.
Inflation Clause; the annual escalation should never exceed 9.
5%, single figure inflation is acceptable.
Never accept double figure escalation clauses.
3.
Hidden Costs; check what costs are added on as extras; a.
Refuse and waste management b.
Marketing costs for shopping center tenants c.
Security d.
Parking costs for tenants.
e.
What percentage of your total bill goes toward utilities? f.
Are there any, penalties payable by you?, or payable due to late or non-payment? g.
Whether any, extra payment is due if one uses space on a stack-pylon to place an illuminated sign.
4.
Tenant Contribution - How much is the property owner willing to contribute toward the building and shop fitting of your business? 5.
Health and safety, are you not in breach of any local proclamation with regard to health and safety, normally, this would include the air quality and hygiene by laws.
6.
Does, the premises require too much re-construction at an exorbitant cost? 7.
Escape or Exit Clause - Your lease should have an exit or escape clause should business or turnover levels not warrant your further trading.
What the Customer Wants The customer requires that the following minimum standards when visiting your premises.
1.
Their safety is paramount.
2.
The environmental safety for families.
3.
The complete shopping experience for consumers including, refreshments, and leisure activities.
4.
The Safety of assets, like motor vehicle.
5.
The feeling of being secure whilst shopping.
6.
Best value for money available, if your rentals cause your prices to escalate unreasonably, you will not offer value to consumers.
7.
Parking without having to wait or ride around in circles for hours.
8.
Ambience and a customer kingdom comforts in the shopping center and in your outlet.
9.
Added experiential value.
10.
A reason to return to the shopping center and your business.
Consumer Numbers When completing the demographic survey the following numbers will present a guideline for your planning.
BusinessNo of consumers required in Primary market demographic Burger/Food and Pizza14 000 - 20 000 households Cinema20 000 - 28 000 households Book Store/Stationery/Art Supplies 12 000 - 15 000 households Fashion Store/Clothing 12 000 - 15 000 households Convenience Store 10 000 - 14 000 households Motor Trade 12 000 - 15 000 households The above represent a broad outline of your primary market and are based on modern family trends of 2.
89 - 3.
2 persons per family household.
Diligence when compiling a list of possible venues or sites for your business is required, to assist you we recommend that you scroll through our list of expert authors and feel free to contact them via this site.
The dollar and dime criteria The Lease Your lease for the premises will have a major influence on your success and future business aspirations and results.
Here is a heads-up on what you should be looking for.
1.
The longer your lease period the lower the proposed rent payable should be.
2.
Inflation Clause; the annual escalation should never exceed 9.
5%, single figure inflation is acceptable.
Never accept double figure escalation clauses.
3.
Hidden Costs; check what costs are added on as extras; a.
Refuse and waste management b.
Marketing costs for shopping center tenants c.
Security d.
Parking costs for tenants.
e.
What percentage of your total bill goes toward utilities? f.
Are there any, penalties payable by you?, or payable due to late or non-payment? g.
Whether any, extra payment is due if one uses space on a stack-pylon to place an illuminated sign.
4.
Tenant Contribution - How much is the property owner willing to contribute toward the building and shop fitting of your business? 5.
Health and safety, are you not in breach of any local proclamation with regard to health and safety, normally, this would include the air quality and hygiene by laws.
6.
Does, the premises require too much re-construction at an exorbitant cost? 7.
Escape or Exit Clause - Your lease should have an exit or escape clause should business or turnover levels not warrant your further trading.
What the Customer Wants The customer requires that the following minimum standards when visiting your premises.
1.
Their safety is paramount.
2.
The environmental safety for families.
3.
The complete shopping experience for consumers including, refreshments, and leisure activities.
4.
The Safety of assets, like motor vehicle.
5.
The feeling of being secure whilst shopping.
6.
Best value for money available, if your rentals cause your prices to escalate unreasonably, you will not offer value to consumers.
7.
Parking without having to wait or ride around in circles for hours.
8.
Ambience and a customer kingdom comforts in the shopping center and in your outlet.
9.
Added experiential value.
10.
A reason to return to the shopping center and your business.
Consumer Numbers When completing the demographic survey the following numbers will present a guideline for your planning.
BusinessNo of consumers required in Primary market demographic Burger/Food and Pizza14 000 - 20 000 households Cinema20 000 - 28 000 households Book Store/Stationery/Art Supplies 12 000 - 15 000 households Fashion Store/Clothing 12 000 - 15 000 households Convenience Store 10 000 - 14 000 households Motor Trade 12 000 - 15 000 households The above represent a broad outline of your primary market and are based on modern family trends of 2.
89 - 3.
2 persons per family household.
Diligence when compiling a list of possible venues or sites for your business is required, to assist you we recommend that you scroll through our list of expert authors and feel free to contact them via this site.
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