Renting space in a forecourt

Cringer

Hi all,

Quick question - any one have any experience in renting some space in a petrol forecourt shop? If, for example you were placing one of those rotating card stands - would you rent the space from the forecourt owner, or pay them a percentage of the takings from the card sales?

Thanks for comments in advance.

Bandara

Cringer wrote: »

Hi all,

Quick question - any one have any experience in renting some space in a petrol forecourt shop? If, for example you were placing one of those rotating card stands - would you rent the space from the forecourt owner, or pay them a percentage of the takings from the card sales?

Thanks for comments in advance.

Hi Cringer,

I've 2 forecourts so I might be able to help.

First off I am a bit confused as towards what you mean by renting space? A lot of forecourts (especially outside of dublin) are very tight in space due to county councils not allowing the shops exceed a certain size in the planning permission stange (for example Meath can be quite rigid on a max 1000sq ft shop size)

I would never rent space in one of my sites as I'd be afraid of losing control. A bit paranoid maybe but I'd venture it would be the normal reaction. It is really going to depend on what the product is, taking your example of a card stand I'm never letting one of them into the store, they are ungainly, get in the way and take up too much space. Also if it is Cards you are selling then I'm just going to go buy them myself and keep all the profit.

let me know what your selling and if I can give you my retailers point of view I will, you can do it via PM in confidence if your not happy posting it here.

I used to have a few kids toys dispensers etc outside one of my sites, I think the deal with the supplier was they supplied and stocked it and took care of everything, I got 25% of the sales in cash (this was the main attracton as the cash could be kept off the books and pocketed, if it was all invoices and credit notes etc I wouldn't have bothered - might be worth considering this angle)

Cringer

I was thinking more along the lines of placing a stand inside the shop. Sorry for the rental confusion - meant only about the shop floor.

Not sure what I would want there initially, it was just something I was mulling over.

As an example, if you were provided with a small stand with pamphlets of local B&Bs in the area and the stand provider (me) charged each B&B say 20 euro per week to place their pamphlets in the stand, then what way would the shop keeper get paid? Cash in hand I can see working, but its harder to cover that, unlike the coin operated machines.

Would a percentage of that €20 work, per week? So if ten B&Bs are utilising the stand that's €200 per week and then a percentage to the shop keeper for the use of the space for the stand.



I am using a B&B as an example only to help illustrate my point. I'd be more interested in the logistics of payment and use of the space.

Thanks

Bandara

I think you'll find it very very difficult to get anyone to agree to putting a stand in their store to be honest.

For most salespeople getting a retailer to agree to put one of their stands in their stores is the holy grail, normally they fill it completely free when they put it in first and there will be an ongoing free stcok deal etc etc

Your going to have to be talking about strong money to get it in the door, even then a lot of people won't want it as it doesn't fit in with the ultra convenience forecourt mix.

I don't think I'd allow it in personally unless it was €100 a week cash.

Space wise I'd be going for a very slim tall stand that you can easily slide in beside entry door. The big bulky wide ones are a bloody nightmare and get in the way of everything.

I think your idea definitely has legs but I can see it being impossible to get into city or busy town stores. They just won't even want to know, I get people every signle day coming in to try to get me to take stands, buy stuff or advertise or suchlike. I don't bother even going out to them anymore, they just get told I'm busy.

Sorry, I'm know I'm being very negative, its just my thoughts on what I'd do if you approached me with such a request.

Good luck with it

Edit: Payment I'd definitely go with straight cash, if it goes through the tills/books and the site is a franchise the manager is going to have to pay 6-8% franchise fee on what he gets.

jamesy08

Hi Hamertime,just a quick question,I have a warehouse about 6 miles from a large city,where i design and build a large range of really good playground equipment(can supply website if you wish),my only problem is there is no passing trade,and im looking to see if i could get a small section of a forecourt or similiar,where i could display one or two of the sets,normally when people come to my premises,they really like the product,would you have any ideas on this
thanks