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 For Small and Medium Business Owners, Come In and Share Your Biz.

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ngaiseng
post Mar 10 2011, 11:12 AM

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Thanks to TS for this topic. I've pretty much run thru most of the latest topics, and find alot of interesting ideads here.

I have a question. I wish to start a mobile kiosk, like those found in shopping centers. How profittable are stalls like these? I've spoken to some operators of some more popular shopping centers and the tenants must provide the shopping center with a monthly sales report. Also when opening and closing the business, they must aherd to operation hours or will be slapped with a heafty fine. Rental is quite high (ranging from RM2500 to RM4000) and reviewed every 3 monthly.

How can to survive? Yet sticker stalls, bead bars etc have been operating for years. So the question is..... is looks profitable, but is it really profitable?
ngaiseng
post Mar 10 2011, 12:56 PM

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QUOTE(Bonescythe @ Mar 10 2011, 11:39 AM)
Location location and location.
I had run 1 mobile kiosk before smile.gif Selling Handphone.. Rental Rm1,800.00.. That location really lousy. 1 day less than 200 people coming in to the complex. It is at Mutiara Damansara.
Work very darn hard to survive.
Everyday work from morning to nite, until 2am.. At the end, monthly profit after deducting everything is Rm400.. Even the staff earns more than me (Rm1k salary)..

After 3 months, chap lap... Hahaha. Good thing did not incur major loss.. We managed to break even and cabut. I know of another owner having loss of 50k because of rental only. He snatch 4 front door kiosk...

I don't know this is consider good experience or not.. But it is definitely an experience worth to have..

Conclusion.. Location is very important.. Location good, 1 day you can make quite a handsome amount.
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It's Kinta Ciy Ipoh. Quite a "up" place and the crowd is plentyful. One thing is the rental I find it pretty high.

I agree that location is very important, just like if no one goes there, give you free also a waste of time.

More comments, please. smile.gif


ngaiseng
post Mar 10 2011, 01:33 PM

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QUOTE(Sebastiank21 @ Mar 10 2011, 01:02 PM)
Rental a bit high but u still can fight ,is better than a low rental ,but no crowd sweat.gif
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That's what I thought too. But the stalls are surviving. Some have been there for over 5 years.

Besides, they are quite fussy with the tenants they have there. If the stalls do not perform with sales, they get the broom. Yet with stiff policies and high rental , stalls are still surviving.

I did a survey on a weekday, and it's gloomy. Night time seem to be better after office hours. I'm waiting for the weekend when I plant my butt on the bench and see how good the business really is.

BTW, what type of salary and commision schemes do they offer to stall promoters?

Thanks for all your input so far. Keep em coming.


Added on March 10, 2011, 1:43 pm
QUOTE(edyek @ Mar 10 2011, 01:29 PM)
That's why the rental is high due to high traffic of crowd.

That's why the item you sell need to have high margin or mass volume in order to have sufficient cash flow and turnover.

Bread = High margin. Normal butter/pineapple bun can easily cost RM 1.50 these days. Cost? As low as RM 0.50~0.80.

Handphone = New handpone no much margin. Trade and sell 2nd handphone, reload cards and repair services.
Need to be at medium-low shopping mall, where the crowd usually buy 2nd handphone or trade in phone to buy a new one.

etc.
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Yes. A margin of 100 - 150% would be good. For bread stalls, althought the price is cheap, the volume is high.

I saw a stall operator in another shopping mall just by selling cloths, he owns 7 outlets. But this guy is smart cos some stalls doing youngsters clothings, some la-la clothings, a potpouri stall, and a few others. Some of his clothings are being sold at RM10 but my guess is this are the hard to sell items or to "bring-in-the customer" clothings.

In the end, if each stall gives him a RM3000 margin, it RM21K we're talking here. Then again... it's a BIG "IF"

This post has been edited by ngaiseng: Mar 10 2011, 01:43 PM

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