how do concessions work?

[sonofkath]

Hi there,

Does anyone have any idea how concessions work? I.e. I'm particularly interested to know how I might approach small independent retail stores to ask for some floor space (and external signage e.g. our branding as window stickers).

Do companies tend to ask for a rent? Or a % of sales etc?

Thanks

 

[solopreneur]

Hi there,

Does anyone have any idea how concessions work? I.e. I'm particularly interested to know how I might approach small independent retail stores to ask for some floor space (and external signage e.g. our branding as window stickers).

Do companies tend to ask for a rent? Or a % of sales etc?

Thanks

I think that the key here is to find a business where your products will compliment the existing offering. This may bring in additional footfall, or may bring in footfall that may not have visited before the concession was in there. If you can find this opportunity, then it should sell itself to the business, and the opportunity for putting up external branding will not be a problem.

You need to have firm evidence to support any claims you make, and need to have a firm idea of why you want to be a concession rather than a supplier. If done right, concessions can work well, and are a way that you could expand in an efficient way.

 

[Page]

Many so called mill shops take on concessions but the % cut they want can be very high

Think in terms of 30 - 33% of the retail price with you liable for the VAT on the full retail price

 

[sonofkath]

Thanks for the replies.

So for example when Carphone Warehouse has a corner space and counter in a big retail store, the retailer will take around 30% of retail sales?

Seems a hell of a lot!

cheers

 

[Billmccallum]

Most will be based on rental for the space, much like the stalls in shopping malls, expect to pay around £1,000 a month for good locations.

 

[billie1]

Most will be based on rental for the space, much like the stalls in shopping malls, expect to pay around £1,000 a month for good locations.

£1000 a month sounds very cheap (well atleast in London). I once enquired about floor space in two shopping malls in London, they were about £700 per day. Imagine how much that is a month. I would think the biggies like Debenhams would charge alot more than £1000 per month for floor space.

 

[sonofkath]

Thanks for your replies guys

I was thinking more about approaching small retailers who are more local. Rather than city centre retailers.

For example companies selling bathrooms via a retail shop.

Any thoughts on what might represent a reasonable cost?

 

[Page]

Thanks for the replies.

So for example when Carphone Warehouse has a corner space and counter in a big retail store, the retailer will take around 30% of retail sales?

Seems a hell of a lot!

cheers

I said mill shops

With places like the carphone warehouse things will be completely different

For example they get limited time exclusive deals and so promoted hard on those lines across all media and in store also

There is no comparison with a mill shop or general retail shop