okay, I always walk around the mall, really busy malls, and see stores like hair salon, or little accesories kiosk, with litterally no customers. My question is, how can a business like that can manage to pay the rent, and make a profit at the same time?
2007-02-11 23:45:40 · 6 answers · asked by Anonymous in Business & Finance ➔ Small Business
Hair salons will 'rent' chairs out to area beauticians, so the salon could have incoming revenue that way. Also, when I pay $80 for a cut, highlights, and style, I know the supplies didn't cost nearly that much.
With the kiosks, they aren't paying quite as much rent and usually require less staffing to serve customers. When dealing with fashion accessories, you can have good margin depending on what you select to keep in inventory.
Yes, many will fail. They don't draw destination shoppers if they were stand-alone businesses, that's why they rely on the mall. Do you notice that many kiosks in malls are seasonal? After christmas, many leave and the space is leased to advertising.
2007-02-12 00:07:26 · answer #1 · answered by larsor4 5 · 0⤊ 0⤋
When you walk around the mall, take notice of the stores that are vacant. Retail businesses are always coming and going. So some do not make a profit and have to close.
2007-02-11 23:49:41 · answer #2 · answered by regerugged 7 · 0⤊ 0⤋
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2016-11-03 05:42:00 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Remember profit is the Difference between Income and Expenses. the better question is why does it exist? Is it a writeoff? Is it owner absent?
-On the other hand, If your mark-up is high enough, one sale is all you need. Jewelry is about 5x-7x times cost (700%), Grocery is about .2 (20%).
2007-02-11 23:58:08 · answer #4 · answered by Thomas C 2 · 1⤊ 0⤋
they charge lots so they dont need as many customers.
they are selling stuff for higher prices then they get it, they don't have many expenses (like staff or rent) and make lots of profit.
...or its just a matter of time before they are gone...or money is comming outta their pocket.
2007-02-11 23:56:49 · answer #5 · answered by Jungle Luv 5 · 0⤊ 0⤋
Most of their profits come at Christmas time.
2007-02-11 23:55:09 · answer #6 · answered by Henry B 5 · 0⤊ 0⤋