I am in the process of locating a space I can sublet smaller space to retailers selling only new items (10x10 or as needed). They will pay rent plus commission. (Same concept as the antique shops). This will allow small retailers the opportunity to start a business or stay in business as there will be no overhead, no payroll. They will have to keep there space stocked and looking great! (example: Shoppe's on 4th or ???). It may even include a small cafe etc. I want shoppers to have fun while shopping, a great meeting place. I will probably need 20 or so tenants to make it work. Depending on the overhead.
Do you know anyone that has done this? Any ideas?

Thanks for any input,
wsm

Other than catering to smaller vendors, how is your idea any different from a mall? But even malls have smaller vendors in the middle booth spaces.

You say that there will be no overhead and no payroll. But, you also say that you are charging rent. That is overhead. Regarding the payroll...are you saying you're going to watch their location for them? Who will be manning the store? I'm assuming your answer is them - right? Well, they may need to pay themselves something. So, that's payroll.

I'm sorry, but I don't understand the difference between what you're offering and what any other resale shops offer (other than the new products I suppose).

If the only difference is the type of products sold, then I agree with BizResearcher, your idea has been done before and thus you have plenty of resources.

canuck1
I have done this with some success. However, as the economy toke a downword turn we lost almost all our space renters. Now, we are stuck with funding the full rrentourselves. Be Careful!!

We have just recently started selling our products in a shop that fits this description in Toronto. http://greeninstead.ca/

We have a contract with the owner who charges us for shelf-space but there is no commission deal attached (although, on the part of the shop owner, I've told her this is a mistake). Because we have a food product, they take care of sampling, and presenting our products to the people who come into the shop.

For us, the vendor, we cannot simply walk away during a downturn because we have a contract. We get the benefit of a great address, knowledgeable sales staff and co-op marketing at retail shows. Which is very useful for us, because we're based in Montreal.

They tell me that they are doing very well and I personally think it's a great idea.

If you send me an email off-list, I will send you a letter of introduction to the owner and you can discuss with her directly how you might copy her principle or not.

Yours,

Tina Brooks, VP Marketing
Brooks Pepperfire Foods, Inc.
Makers of Peppermaster Hot Sauces
http://www.peppermaster.com

Eat more peppers!