Where’s the money honey?
If you’re anything like me, you love numbers as much as colour palettes, furniture, and design, but I do know this is a little unusual, so that’s why I’ve prepared a budget checklist for anyone thinking about opening a pop up store.
This amount will all depend on where you decide to pop up. If you’re looking for a high foot traffic location and want to be open for the long haul, then the daily rate will likely be substantially more than if you were looking up at opening at a market or quieter location.
The trick here, is to work out your cost per day and that way you’re able to calculate the amount of stock that needs to be sold. By doing this, you’re artfully creating daily goals.
Arrghhhh! Yes, you can’t escape these. Power, phone, internet and eftpos machine rental all need to be considered. Also, don’t forget to ask the landlord who’s responsible for the water bill.
Insurance is a biggie and we highly recommend having a policy to cover your stock and public liability. Many insurance companies won’t do contracts for less than a year – so pay monthly and cancel it when your pop up is complete.
Don’t forget to factor in staff costs because it’s highly unlikely you’ll be able to man the stand on your lonesome.
Branding and signage
Depending on the scale of your pop up, signage and branding is essential to getting the word out there. Make sure you garner a few quotes from a number of suppliers to ensure you’re getting the best price.
Legal and professional services
Always ensure you factor in a cost for someone to look through your lease/license agreement.
Shop design, fitout, and furniture hire
There is a pop up and a then there is a pop up. They come in all shapes and sizes and big brands have been known to spend millions on the design of their pop up experience. But hey, even if yours is teeny, we’d still recommend engaging a designer because it often saves you money in the long run.
Designers can secure decent supplier discounts and know how to make space work to encourage customers to purchase. This is a science, and unless you’re in it day in, day out, leave it to the experts.
Enjoy the number crunching, especially when you start selling that stock.
Lizzi Hines is MD of Spaceworks. For more information, phone 0800 2 FIT OUT, or visit www.spaceworks.co.nz
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