21cents Posted March 2, 2011 Share Posted March 2, 2011 Anyone here had the experience of running, owning, and operating a mall kiosk? Its something i thought about and want to start. But i would love to get some insider on what to expect from it. Link to comment Share on other sites More sharing options...
chipwhich Posted March 2, 2011 Share Posted March 2, 2011 I looked into it once. What is your question? It's cheaper than a "fixed" space. It's no different than any other store front. Do you have a product that will sell well, and is priced well based on foot traffic? It takes products with a special price point, and products that can draw interest easily. You wont sell Rolex watches at a Kiosk. Link to comment Share on other sites More sharing options...
The Brave Little Toaster Oven Posted March 2, 2011 Share Posted March 2, 2011 Are you a Mossad agent trying to get a kiosk at Pentagon City to prey on military and contractors? I'm on to you :paranoid: Link to comment Share on other sites More sharing options...
Hubbs Posted March 2, 2011 Share Posted March 2, 2011 Step 1 is to not ask me if I have a damn cell phone. Link to comment Share on other sites More sharing options...
The Sisko Posted March 2, 2011 Share Posted March 2, 2011 Interesting. I've always wondered how anyone makes money with these things since most of the ones I've seen usually have only attracted a crowd of one....i.e. the bored looking teenager working the kiosk. Link to comment Share on other sites More sharing options...
Homercles82 Posted March 2, 2011 Share Posted March 2, 2011 The kiosk needs to offer something people think they want at reasonable prices. A kiosk selling swarsky crystal or the one where the Indian lady plucks your eyebrows with string? No one stops at it. The kiosk selling Dippin' Dots? Sells like gangbusters. How about the one with cell phone cases in 5,000 different designs at half the price of the AT&T store? Always busy. Think your business model through first, analyze what you are selling and try to make the best educated guess you can as to how popular it will be. Why do cell phone companies and Dippin' Dots stay open and busy? The cell phone market is growing, and people are getting new phones all the time so the potential customer base is HUGE. Dippin' Dots are something that people want everytime they go to the mall. May we ask what you would be selling? Please don't say R/C helicopters. Link to comment Share on other sites More sharing options...
Lombardi's_kid_brother Posted March 2, 2011 Share Posted March 2, 2011 I'm reasonably convinced that most businesses in malls are fronts for white-slave traders. Except Sharper Image. That place is a front for Colombian Drug Lords. Fact: No one has ever spent money at a Sharper Image, a Spencers, or a mall Art Store. No one has ever bought the skin cleanser from the Dead Sea. My mom, however, has bought one those things you put in the microwave and then place on your neck. I tried it once and gave myself a first degree burn. Link to comment Share on other sites More sharing options...
zoony Posted March 2, 2011 Share Posted March 2, 2011 At any mall with decent traffic, figure minimum $10k a month in rent. For instance, this is what they cost in Sawgrass Mills in Florida. I would imagine some of the nicer properties in the DC Metro are even pricier. So, figure whatever you're selling has a .50 margin. That's pretty agressive, .38-.42 is more the overall standard in retail. But, we'll pretend you are selling something unique and awesome. Figure your payroll is going to be $3500 (1 person to open and close the kiosk daily at $10/hour). So, you'll need to clear $27,000 a month in top line sales to break even. If your average basket is, say, $25, that's 1080 transactions. That breaks down to roughly 3 transactions per hour. And that's assuming you have absolutely no other business expenses. Cough. I don't see how those places make money. Maybe that's why they change every month. .... Link to comment Share on other sites More sharing options...
Lombardi's_kid_brother Posted March 2, 2011 Share Posted March 2, 2011 At any mall with decent traffic, figure minimum $10k a month in rent. For instance, this is what they cost in Sawgrass Mills in Florida. I would imagine some of the nicer properties in the DC Metro are even pricier.So, figure whatever you're selling has a .50 margin. That's pretty agressive, .38-.42 is more the overall standard in retail. But, we'll pretend you are selling something unique and awesome. Figure your payroll is going to be $3500 (1 person to open and close the kiosk daily at $10/hour). So, you'll need to clear $27,000 a month in top line sales to break even. If your average basket is, say, $25, that's 1080 transactions. That breaks down to roughly 3 transactions per hour. And that's assuming you have absolutely no other business expenses. Cough. I don't see how those places make money. Maybe that's why they change every month. .... Look at the big brain on Brett!! Seriously, how does Spencer's make money? I went to the mall every weekend from Age 10 to Age 17. And every single time either me or one of my friends stole something from Spencers. I don't know anyone who ever actually bought an item there. Is the mark-up on black lights that great? ---------- Post added March-2nd-2011 at 06:41 PM ---------- FYI. Pentagon City in 2000 was charging $75,000 a year in rent for 250 square feet of kiosk space. That was 11 years ago. It's possible that it has not gone up that much considering the retail market now. http://www.interchange.org/Blackberry2000.html Link to comment Share on other sites More sharing options...
sly Posted March 2, 2011 Share Posted March 2, 2011 I went to the mall every weekend from Age 10 to Age 17. And every single time either me or one of my friends stole something from Spencers. Wow, really? Link to comment Share on other sites More sharing options...
SkinsHokieFan Posted March 2, 2011 Share Posted March 2, 2011 My friend's mom used to run one at Tysons. But this was a speciality one, focused on things from Ireland for about 2 months before St Patty's day. In the early part of the decade they cleared about 35,000 a year doing this. But with competition from the internet and higher rent at tysons, she eventually had to stop with it Link to comment Share on other sites More sharing options...
zoony Posted March 3, 2011 Share Posted March 3, 2011 Look at the big brain on Brett!!Seriously' date=' how does Spencer's make money? I went to the mall every weekend from Age 10 to Age 17. And every single time either me or one of my friends stole something from Spencers. I don't know anyone who ever actually bought an item there.[/quote'] The greeting cards with the fat women in bikinis are a cash cow Link to comment Share on other sites More sharing options...
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