Rent as a % of turnover for eCommerce?

Discussion in 'Ecommerce Forum' started by JPMiddleton, Jun 24, 2014.

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  1. JPMiddleton

    JPMiddleton UKBF Regular Free Member

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    I've been researching moving away from my current situation (working from home plus renting a storage unit locally) and renting an office in a local business centre and I've been trying to find average rents paid and rough percentages of turnover for ecommece businesses.

    So far I've mostly seen and read articles from US sites but wondered if anyone would be interested in sharing what their rent/turnover ratio is, if you don't work from home? I'm not asking anyone to give away information about what rent they pay or what their turnover is, but if there's anyone in a similar position it would be greatly appreciated if you could share some thoughts.

    It looks as if I'll be paying roughly 3.5% of turnover (which I can afford after looking through costs, expenses and history) but I'm interested to know how others view at number.
     
    Posted: Jun 24, 2014 By: JPMiddleton Member since: Aug 18, 2011
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  2. japancool

    japancool UKBF Big Shot Full Member

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    As you know, I've done exactly that. I pay around 3.7%, although I run two businesses from the same office, so I share the rent between the two.
     
    Posted: Jun 24, 2014 By: japancool Member since: Jul 11, 2013
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  3. fruch

    fruch UKBF Contributor Free Member

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    Sounds pretty good. Good enough to make me worry about my costs (or turnover!)
     
    Posted: Jun 24, 2014 By: fruch Member since: Feb 28, 2012
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  4. deniser

    deniser UKBF Legend Free Member

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    Mine is 4.4% and I thought that was cheap but it does include an unused retail shop.

    There is enough space to quadruple the turnover from what it is now so could potentially be as low as 1.1%.
     
    Posted: Jun 25, 2014 By: deniser Member since: Jun 3, 2008
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  5. JPMiddleton

    JPMiddleton UKBF Regular Free Member

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    Thanks very much for the replies guys. I was and am fairly confident 3.5% is a pretty good number to aim for, but i've subsequently discovered the rent includes electricity, broadband and more which is nice. So looks pretty good at the moment.

    Just need to contact Leeds Council to check the rent would be low enough for exemption from rates (is that how it works?)
     
    Posted: Jun 25, 2014 By: JPMiddleton Member since: Aug 18, 2011
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