Vendor co-op stores are popping up more frequently nowadays and people are turning to them as a way to make some additional money or even possibly make it their full time gig.
Starting a booth isn’t rocket-science, but it is hard work, especially when you’re first starting out. But don’t let that discourage you from taking that first step because it can be a fun, fruitful business or hobby if you’re willing to make it work and do the work.
So now that you’ve decided to take that leap and start a booth, there are some things you should ask a mall / business owner when you’re looking to rent a space in their store. Don’t go into a store and sign a lease. Do your due diligence and choose the best store for you.
I’ve been on both sides of the vendor booth as a booth owner and then a store owner so here’s my list of things you should ask when looking at a specific store.
1. Rent and Fees
Antique malls and co-op stores vary when it comes to their leases, rent prices, and additional fees. Some leases are month-to-month and others may require commitments of 3-6 months. I’ve been a vendor at a store where there was a commitment of one year and it turns out that was the best store I was ever a vendor in.
On average, a typical antique mall charges a monthly fee of $2-$4 per square foot of the booth rental space. Typically, malls will also charge additional fees for commission, credit card processing, advertising, etc.
QUESTIONS TO ASK
-How much are your spaces?
-What is the commitment in renting a space in your store?
-Is there a commission that goes to the store?
-Are there credit card fees?
-What other fees are there?
2. Store Traffic
A big advantage that antique malls and co-op stores have over a stand-alone shop is customer traffic because you have more people telling others about the store. Vendors will tell their friends and families, as will customers, about the store whereas a business owner is the only one besides there customers – or so we hope!
As you consider a store, look around for customers, lines at the checkout counter, cars in the parking lot, shoppers within each antique booth. Now, this isn’t a tell-tale sign that a store isn’t doing good. You just may be visiting that store during their non-peak hours. If you see a vendor in the store in their space adding new items or moving things around, strike up a conversation with them to learn more about customer count and expected volume. I recommend chatting with 3-4 vendors to get a feel for the overall traffic so if you need to make another trip to the store, at a different time, then do so.
One way to help bring in traffic to a store is with events, especially events gear towards customers who willing be looking for season changing items; spring, fall, Christmas. People will drive for hours to attend events. When I was a store owner, I made a huge effort to hold events every other month and it was a game changer for our traffic because it helped with repeat traffic in between events.
QUESTIONS TO ASK
-What is your foot traffic like?
-Do you hold events? How often do you hold event?
3. Social media / Advertising
Branding plays a major part in a store’s success. Gone are the days when word of mouth was the best method to get your name out there. Advertising, whether its a radio or newspaper ad, signs along the road, social media, needs to be a priority for a business Check out social media to see if they have social media profiles and to see how active they are. Also, see if they post photos of vendors’ items. This shows their willingness to help their vendors succeed and show customers their diversity of items.
QUESTIONS TO ASK
-What type of advertising do you do?
4. Tracking Your Sales
Being able to see your sales online is a great way to help customers succeed. If you’re able to see your sales online, you’ll be able to know when you need to go into your booth and add items. Plus, when you see that you made a sale, it makes you do a little happy dance. I’ve been in malls that had online tracking tools and some that haven’t. I was more attentive to my booth when I knew I had to add items to my space. That’s not to say that being in a store that doesn’t have an online way to see your sales won’t be successful. It is just a very helpful tools.
QUESTIONS TO ASK
-Do you have an online way to see my sales?
-If so, is there a cost associated with that?
5. Theft Protection
Theft is always a risk in any kind of retail business and it hurts your sales and profitability. Being in a store that helps deter theft helps give you peace-of-mind knowing that they’re doing their part to help your items, vendors, and customers be safe.
QUESTIONS TO ASK
-What are your security protections?
6. Other Questions to Ask
Do I need to work in the store? Some stores ask you to work a certain amount of hours per month in their store. This doesn’t include the time you’ll spend each month changing up your booth or adding items.
Do you limit the amount of (specific item) vendors? For instance, if I’m a candle vendor and the store doesn’t limit the amount of candle vendors within their store, that store could end up with 5 candles vendors. Chances are you won’t do as well due to their being to many close competitors. This would only be relevant if you have a specific item or sell or you don’t care.
Is there a policy on discounts? Some stores will automatically give a customer a lower price automatically if a customer asks. If you’re not interested in having your items go for a lower price (other than when you hold a sale in your booth), be sure to ask this question.
Are you require to donate items? When a store hold events, they will tend to ask their vendors if they’d like to supply a door prize. There are some stores who make this a requirement for the booth owner.
Who takes care of my sales tax? In most states, when you sell an item, sales tax is added to the end cost of that item. Check with the store on whether they’ll be submitting your sales tax to your state on your behalf or if they give you the sales tax to submit yourself.
Each state is different on policies/laws so I won’t go into the legality of it all, but please do your research on sales tax in your state.
Is there specific parking for vendors to unload and load item? There may be easier accessible parking for vendors to get their items in and out of the store.
Can I change the walls in/look of my booth? You’ll find that many store use pegboard or other less desirable options for walls in the store. If you don’t like what they have on the wall ask if you can change it.
Also, ask if you’re able to nail or screw into the walls. Do what you can to make the space the way you want, looks inviting, but yet follows the store’s rules.
Are they restriction on what type of items can be sold in the store? Besides the obvious not allowed (or so I hope) items of alcohol, paraphernalia, weapons, dangerous items, animals, stolen or bootlegged items, check with the store on whether there are items they don’t allow. You’ll find that some stores do not allow new (wholesale) items or items with swear words on them.
Are there specific times where vendors can be in their booth? In my store, vendors weren’t allowed to be in their space during our peak hours. Many times customers won’t go into a booth where a vendor is working so it could take away from a sale on your items.