It seems more and more I see posts from Vapers who trash Mall Vendors.
So I wanted to share some information with you, while you are vaping in the mall
with your Eg0 and Provari's, trashing someone's business.
It became very clear to me that many of the Vapers here have no idea
the cost of running a business, much less a one in a high volume retail establishment.
If you pardon the length and want to learn something, keep reading, if you want to stay
ignorant, then go to the next thread.
Mr. Mall Vendor sees a product and decides he wants to open a kiosk and sell it in the mall.
He contacts the mall leasing agency and decide to rent a space (10x10 RMU retail merchandizing unit)
for $20K on a 12 month lease. Mr. Mall Vendor then finds out, the Mall does not lease 1 yr lease terms
it is 3 to 5 yr lease terms and they have this additional cost called "TRIPLE NET". Where he will have to
pay 3x times his profit to the Mall to obtain a space in it and to assist in the costs of security, lights, parking lot maintence,
interior maintence and janitorial services and other costs associated with being a business in the mall. He's also not crazy about the
requirement for General Liability insurance, but he calls around finds a 1M/2M policy for $750 which is a good deal in todays higher insurance premium rates.
He feels pretty lucky overall because he knows that mall kiosk's can cost up to $100,000.00 a yr still, he believes in his product and signs a 3 yr lease with MALLS R Us for a total of $60K over 3 yrs plus TRIPLE NET. His initial cost is the $60,000.00 lease divided into months of the lease for 36 months, so he pays first and last and his monthly rent will be $1667 plus his triple net (paid quarterly). He signs his lease, writes a check for $3334 to MALLS R US.
He already has his business license paid for $100 and incorporated his business $250. And he's ready to go to work!! (right?)
No....not quiet yet, because he realizes he needs to open a bank account for his business and business checking is expensive. $500 min into the account and he will get charged a monthly fee plus a fee for every deposit he makes, and pay for business checks...but it is worth it because he believes in his product and he is excited to start a new business.
He looks at his new ledger for his checking account. $3334 for rent, $100 for business license, $250 to incorporate, $500 into business checking and his insurance policy was $750 a little heavy in the pocketbook but it covers him for the whole year so he's pleased.
The Mall is open from 9am to 9pm M-F and 9am to 10pm on Sat and 10am-8pm on Sun. This is 83 hours of business time, he is required to be open by his lease (or get fined) and Mr. Mall Vendor realizes he will need to hire some employees. He makes a decision to hire 4 employees to cover the 83hrs of mall time. A few employees with get a few extra hours here and there, and also be able to work some additional hours if someone is sick. Also when the mall stays open longer during the holiday season each employee can pull some extra hours to make some extra money and he will still have all the shifts covered.
He hires college students who really believe in his product like he does and works their schedules around their school hours. His new employees are thrilled to have a job and Mr Mall Vendor is excited because he sees people in the mall using similar products to what he is selling. He also sees many people outside the mall using a product he will try to move them away from and purchase his product.
He makes a quick call to his bookkeeper because he read a business book and that book said any good business person will have a bookkeeper or accountant to check their spending and profits and makes sure his taxes are paid in a timely manner. His bookkeeper costs him $100 a month, IF he brings his records in databased already for a quick overview. On his way out of the Mall after hiring his 4 employees he stops by the software store and picks up a copy of Quickbooks for $50 then heads back over to the Bank.
His bookkeeper told him now that he has employees he has to open three tax accounts at the bank, but those are cheaper than regular business checking at just a $10 a month fee for each. One account for withholding taxes, one account for social security and one account for sales taxes he will collect for the state, for having the priviledge of being a business owner.
Mr. Mall Vendor is still so excited because he believes in this product and on his way home he sees more and more potential customers for his business. He is going to be living the American Dream, opening a business and making money so he can pay off his bills and start a college fund for his children.
Mr Mall Vendor does a quick calcuation of his employee wages, as he lives in Washington state and the state says if you make less than $100,000 a yr in your business you have to pay your employees $8,67 hr instead of the federal minium wage which is $7.25hr. However he is okay with that because he hired great employees and knows they can use the little extra. He decided to pay them $8,75 an hr and round out the wage.
The phone rings and Mr Mall Vendor is talking to Ms Bookkeeper who sets an appointment for him to go over his commitments thus far in getting his business off the ground. After that phone call Mr Mall Vendor starts calling around to find a merchant account that will accept Visa/MC/ and other credit card payments for his account and finds that his product, which he belives in and is so excited over will cost him almost 20% of the credit charge total.
Mr Mall Vendor is very dismayed, as he knows that most purchases are made with debit or credit cards and not cash or checks. This means for every $100 spend by a customer he will have to $20 for them to have the ability to use their debits and credit cards and he is thinking this is most unfair as most merchant accounts are only charged 1%-5%.
He continues to shop around the internet and finds a merchant account that will only cost him 10%. Since this is the best he can do and feels lucky to find a 10% merchant account he signs up for their services and has them send him a machine that will allow customers to swipe their cards at his kiosk.
The next day he meets with Ms Bookkeeper and she explains to him how he will pay his employees and shows him how to use his Quickbooks program Mr Mall Vendor downloaded on his laptop the night before. Mr Mall Vendor will work the 3 odd hours at the kiosk on Sunday so his employees will have 20 hrs each. All his employees are single. For each employee Mr Mall Vendor will pay them a wage of $175 per week, per employee. Which will cost him $700 in wages for the month it will cost him $2800 for each employee.
So his costs to run his business the first month will be his $1667 rent and wages of $2800. But wait...says Ms Bookkeeper, you also have to match their social security and fica payments of 8%, which is another $225 for the month and you must pay unemployment insurance on each employee each month and workman's compensation. $10 extra per employee per week. 4 employees x$40 of extra insurances required by the state x4 weeks. Which is another $640. She explains where each group of tax money is collect and what account it is put in and that the amounts will be due every quarter or every 3months.
Mr Mall Vendor is a little a taken back at the costs of having employees however he BELIEVES in his product, even if his costs he has to cover before he makes any profit is $5332.00 a month. He is sold on being a business owner and his product. He knows he could have bought a franchise to operate his business under but they would take another 10% of his profits each month and he already will have to pay TRIPLE NET to the mall so he decided to just go it alone create a business name and logo and start fresh a new.
Mr Mall Vendor realizes he needs a logo for his business and website also, because his goal will be to create goodwill with his customers and have them shop with him for more product. When they buy online they he can lower some of the costs but he's not sure by how much because the initial cost of obtain his customers and repeat business will be from the mall. Some of this cost might be able to be covered by the online sales, because of course he is opening a business to make money, so he can start a college fund for his kids and pay off his debits and maybe take a vacation with his wife cause he has been promising her one for 5 years now.
One of his college students is doing graphic design and he gets a deal on his logo and web work because the design companies he called charge $2500 for just the basic design and he is only going to pay $1000. He is also excited because his employees are talking up his business at the college and he hopes that they will come and shop with him.
Mr Mall Vendor being a good business man sits down and looks at his checkbook ledger. His intitial out lay for getting his business. He doesn't really look at the $60,000.00 for his lease but it is a concern because if he cannot stay open for three years he will owe that money to MALLS R US. His start up expenses are over $6100. He isn't paying wages yet, but he will and this will cost $3365 a month and his rent of $1667 for the mall space. He also will pay his graphic design employee an extra $100 a month to update the website for his business.
Mr Mall Vendor is still posititive even with the $5300+ a month overhead he will pay on his mall space, he believes in his product. He sees people using the product and sees many more who might become users of product and services. He loves to see the product he is going to sell being used in the mall.
Mr Mall Vendor now has the job of obtain his product he is going to sell and he's not sure how many will be bought at his kiosk. He realizes he has to order much more than he thought to get a discount break which he can't afford yet, so he orders his initial supplies and display units. The starter kit costs him $35 each one with the small discount he got because he can't order in the thousands yet. But his supplier has a quick shipping and they will print his logo on the product. The hope is to sell 10 or more units a day. That will be $350 in product costs just for the main product.
But he has a monthly cost of being in the mall, so he has to take into consideration the $5332 in monthly expenses and some how manage to cover the TRIPLE NET he will get charged each quarter and make a profit. He needs to make $200 a day to just break even there's a little overage because of the TRIPLE NET, plus is product cost 10 units a day is $350. His daily total to just break even, is $550 a day if he can sell 10 units. So he decides to sell his product for $100. If he can sell 10 units a day that is $1000 a day, as long as they sell 6 units they have broken even on the costs. If they sell more that is a little bit in his pocket to order ahead, plan for increases costs and maybe make one employee full time but this has an additional cost added so he doesn't have the money to pay that yet.
VAPERS....this is the American Dream...to own a business...these are costs and my figures are on the LOW END.
And as a business owner I would be highly upset if you were standing in my mall next to my kiosk shoving business away
when you have no clue of what it costs to START UP, OPEN, MAINTAIN, PAY OVERHEAD, PRODUCT COSTS and the most IMPORTANT thing....EMPLOYE people.
It makes me angry that you would stand around and intentionally harm somone's livihood because the product can be purchased somewhere else cheaper.
Are you at Target telling customers "well you can buy that Tide cheaper at Walmart" or at McDonald or Burger King telling customers they can get a value meal cheaper at Wendy's or Dairy Queen??
No, you won't go out there and slay big corporations, talk down their business INSIDE their business, but you will take AIM
at the Small Business owner, stand around and trash his business because the product can be had cheaper from an online vendor, who doesn't have to pay the overhead a mall vendor does....
I'm not talking about what kind of product and quality is on the shelf in the mall. You all spend a lot of time your trashing your ONLINE VENDORS also.
The goal is to get people from analog to vaping. If you are standing by that mall kiosk promote the small business owner. Show them your product, yes it costs a little more, but you know what ...when I wanted to quit I was desperate to find something. I didn't want to wait. I went to the mall and bought a battery/charger and carts. My cost $60 I didn't buy the kit and now I order stuff off line, but ya know what...my mall vendor gets me fabulous deals on bulk ordering their juice which is actually better than some of the online vendors I have purchased from and when I at that small business owners establishment and I support their idea of getting people to quit smoking. I don't trash the vendor and I don't steer the customer away. I want to see new Vapers in my community.
Reality check, people shell out ungodly money for Iphones, Droids, laptops and gagets...what's $100 for an E-Cig that is going to change their life, their health and their family????
And what's the benefit for you to do this??? Do you really think it's worth the $20-$40 the customer in the mall will save? The time delayed in getting them off analogs?
What if you scared that customer away and they think " Well that is really expensive. I might as well stay with smoking my Reds." You give them a card for an online vendor but they lose it, or they go to ECF and get info overload and it's weeks or months before they obtain an E-Cig.
You just cost the small business owner in the mall a customer, a customer longer health issues because they are delayed in getting excited about being a Vaper AND GET THIS ....you cost YOUR ONLINE VENDOR FREINDS financial loss because that person HASN"T KEYED INTO THE SYSTEM YET.
Yep...stand around, trash the mall vendors...that's the way to promote vaping by Raping the Small Business Owner, The Customer and Future Potiental Profits of everyone in this industry...
WTG!!!!!!!!!!!!!!!
And remember if you can do it BETTER AND CHEAPER in RETAIL...GET YOUR ... OUT THERE AND DO IT!
Competition is the best solution for high prices in the market place!!!!!
So I wanted to share some information with you, while you are vaping in the mall
with your Eg0 and Provari's, trashing someone's business.
It became very clear to me that many of the Vapers here have no idea
the cost of running a business, much less a one in a high volume retail establishment.
If you pardon the length and want to learn something, keep reading, if you want to stay
ignorant, then go to the next thread.
Mr. Mall Vendor sees a product and decides he wants to open a kiosk and sell it in the mall.
He contacts the mall leasing agency and decide to rent a space (10x10 RMU retail merchandizing unit)
for $20K on a 12 month lease. Mr. Mall Vendor then finds out, the Mall does not lease 1 yr lease terms
it is 3 to 5 yr lease terms and they have this additional cost called "TRIPLE NET". Where he will have to
pay 3x times his profit to the Mall to obtain a space in it and to assist in the costs of security, lights, parking lot maintence,
interior maintence and janitorial services and other costs associated with being a business in the mall. He's also not crazy about the
requirement for General Liability insurance, but he calls around finds a 1M/2M policy for $750 which is a good deal in todays higher insurance premium rates.
He feels pretty lucky overall because he knows that mall kiosk's can cost up to $100,000.00 a yr still, he believes in his product and signs a 3 yr lease with MALLS R Us for a total of $60K over 3 yrs plus TRIPLE NET. His initial cost is the $60,000.00 lease divided into months of the lease for 36 months, so he pays first and last and his monthly rent will be $1667 plus his triple net (paid quarterly). He signs his lease, writes a check for $3334 to MALLS R US.
He already has his business license paid for $100 and incorporated his business $250. And he's ready to go to work!! (right?)
No....not quiet yet, because he realizes he needs to open a bank account for his business and business checking is expensive. $500 min into the account and he will get charged a monthly fee plus a fee for every deposit he makes, and pay for business checks...but it is worth it because he believes in his product and he is excited to start a new business.
He looks at his new ledger for his checking account. $3334 for rent, $100 for business license, $250 to incorporate, $500 into business checking and his insurance policy was $750 a little heavy in the pocketbook but it covers him for the whole year so he's pleased.
The Mall is open from 9am to 9pm M-F and 9am to 10pm on Sat and 10am-8pm on Sun. This is 83 hours of business time, he is required to be open by his lease (or get fined) and Mr. Mall Vendor realizes he will need to hire some employees. He makes a decision to hire 4 employees to cover the 83hrs of mall time. A few employees with get a few extra hours here and there, and also be able to work some additional hours if someone is sick. Also when the mall stays open longer during the holiday season each employee can pull some extra hours to make some extra money and he will still have all the shifts covered.
He hires college students who really believe in his product like he does and works their schedules around their school hours. His new employees are thrilled to have a job and Mr Mall Vendor is excited because he sees people in the mall using similar products to what he is selling. He also sees many people outside the mall using a product he will try to move them away from and purchase his product.
He makes a quick call to his bookkeeper because he read a business book and that book said any good business person will have a bookkeeper or accountant to check their spending and profits and makes sure his taxes are paid in a timely manner. His bookkeeper costs him $100 a month, IF he brings his records in databased already for a quick overview. On his way out of the Mall after hiring his 4 employees he stops by the software store and picks up a copy of Quickbooks for $50 then heads back over to the Bank.
His bookkeeper told him now that he has employees he has to open three tax accounts at the bank, but those are cheaper than regular business checking at just a $10 a month fee for each. One account for withholding taxes, one account for social security and one account for sales taxes he will collect for the state, for having the priviledge of being a business owner.
Mr. Mall Vendor is still so excited because he believes in this product and on his way home he sees more and more potential customers for his business. He is going to be living the American Dream, opening a business and making money so he can pay off his bills and start a college fund for his children.
Mr Mall Vendor does a quick calcuation of his employee wages, as he lives in Washington state and the state says if you make less than $100,000 a yr in your business you have to pay your employees $8,67 hr instead of the federal minium wage which is $7.25hr. However he is okay with that because he hired great employees and knows they can use the little extra. He decided to pay them $8,75 an hr and round out the wage.
The phone rings and Mr Mall Vendor is talking to Ms Bookkeeper who sets an appointment for him to go over his commitments thus far in getting his business off the ground. After that phone call Mr Mall Vendor starts calling around to find a merchant account that will accept Visa/MC/ and other credit card payments for his account and finds that his product, which he belives in and is so excited over will cost him almost 20% of the credit charge total.
Mr Mall Vendor is very dismayed, as he knows that most purchases are made with debit or credit cards and not cash or checks. This means for every $100 spend by a customer he will have to $20 for them to have the ability to use their debits and credit cards and he is thinking this is most unfair as most merchant accounts are only charged 1%-5%.
He continues to shop around the internet and finds a merchant account that will only cost him 10%. Since this is the best he can do and feels lucky to find a 10% merchant account he signs up for their services and has them send him a machine that will allow customers to swipe their cards at his kiosk.
The next day he meets with Ms Bookkeeper and she explains to him how he will pay his employees and shows him how to use his Quickbooks program Mr Mall Vendor downloaded on his laptop the night before. Mr Mall Vendor will work the 3 odd hours at the kiosk on Sunday so his employees will have 20 hrs each. All his employees are single. For each employee Mr Mall Vendor will pay them a wage of $175 per week, per employee. Which will cost him $700 in wages for the month it will cost him $2800 for each employee.
So his costs to run his business the first month will be his $1667 rent and wages of $2800. But wait...says Ms Bookkeeper, you also have to match their social security and fica payments of 8%, which is another $225 for the month and you must pay unemployment insurance on each employee each month and workman's compensation. $10 extra per employee per week. 4 employees x$40 of extra insurances required by the state x4 weeks. Which is another $640. She explains where each group of tax money is collect and what account it is put in and that the amounts will be due every quarter or every 3months.
Mr Mall Vendor is a little a taken back at the costs of having employees however he BELIEVES in his product, even if his costs he has to cover before he makes any profit is $5332.00 a month. He is sold on being a business owner and his product. He knows he could have bought a franchise to operate his business under but they would take another 10% of his profits each month and he already will have to pay TRIPLE NET to the mall so he decided to just go it alone create a business name and logo and start fresh a new.
Mr Mall Vendor realizes he needs a logo for his business and website also, because his goal will be to create goodwill with his customers and have them shop with him for more product. When they buy online they he can lower some of the costs but he's not sure by how much because the initial cost of obtain his customers and repeat business will be from the mall. Some of this cost might be able to be covered by the online sales, because of course he is opening a business to make money, so he can start a college fund for his kids and pay off his debits and maybe take a vacation with his wife cause he has been promising her one for 5 years now.
One of his college students is doing graphic design and he gets a deal on his logo and web work because the design companies he called charge $2500 for just the basic design and he is only going to pay $1000. He is also excited because his employees are talking up his business at the college and he hopes that they will come and shop with him.
Mr Mall Vendor being a good business man sits down and looks at his checkbook ledger. His intitial out lay for getting his business. He doesn't really look at the $60,000.00 for his lease but it is a concern because if he cannot stay open for three years he will owe that money to MALLS R US. His start up expenses are over $6100. He isn't paying wages yet, but he will and this will cost $3365 a month and his rent of $1667 for the mall space. He also will pay his graphic design employee an extra $100 a month to update the website for his business.
Mr Mall Vendor is still posititive even with the $5300+ a month overhead he will pay on his mall space, he believes in his product. He sees people using the product and sees many more who might become users of product and services. He loves to see the product he is going to sell being used in the mall.
Mr Mall Vendor now has the job of obtain his product he is going to sell and he's not sure how many will be bought at his kiosk. He realizes he has to order much more than he thought to get a discount break which he can't afford yet, so he orders his initial supplies and display units. The starter kit costs him $35 each one with the small discount he got because he can't order in the thousands yet. But his supplier has a quick shipping and they will print his logo on the product. The hope is to sell 10 or more units a day. That will be $350 in product costs just for the main product.
But he has a monthly cost of being in the mall, so he has to take into consideration the $5332 in monthly expenses and some how manage to cover the TRIPLE NET he will get charged each quarter and make a profit. He needs to make $200 a day to just break even there's a little overage because of the TRIPLE NET, plus is product cost 10 units a day is $350. His daily total to just break even, is $550 a day if he can sell 10 units. So he decides to sell his product for $100. If he can sell 10 units a day that is $1000 a day, as long as they sell 6 units they have broken even on the costs. If they sell more that is a little bit in his pocket to order ahead, plan for increases costs and maybe make one employee full time but this has an additional cost added so he doesn't have the money to pay that yet.
VAPERS....this is the American Dream...to own a business...these are costs and my figures are on the LOW END.
And as a business owner I would be highly upset if you were standing in my mall next to my kiosk shoving business away
when you have no clue of what it costs to START UP, OPEN, MAINTAIN, PAY OVERHEAD, PRODUCT COSTS and the most IMPORTANT thing....EMPLOYE people.
It makes me angry that you would stand around and intentionally harm somone's livihood because the product can be purchased somewhere else cheaper.
Are you at Target telling customers "well you can buy that Tide cheaper at Walmart" or at McDonald or Burger King telling customers they can get a value meal cheaper at Wendy's or Dairy Queen??
No, you won't go out there and slay big corporations, talk down their business INSIDE their business, but you will take AIM
at the Small Business owner, stand around and trash his business because the product can be had cheaper from an online vendor, who doesn't have to pay the overhead a mall vendor does....
I'm not talking about what kind of product and quality is on the shelf in the mall. You all spend a lot of time your trashing your ONLINE VENDORS also.
The goal is to get people from analog to vaping. If you are standing by that mall kiosk promote the small business owner. Show them your product, yes it costs a little more, but you know what ...when I wanted to quit I was desperate to find something. I didn't want to wait. I went to the mall and bought a battery/charger and carts. My cost $60 I didn't buy the kit and now I order stuff off line, but ya know what...my mall vendor gets me fabulous deals on bulk ordering their juice which is actually better than some of the online vendors I have purchased from and when I at that small business owners establishment and I support their idea of getting people to quit smoking. I don't trash the vendor and I don't steer the customer away. I want to see new Vapers in my community.
Reality check, people shell out ungodly money for Iphones, Droids, laptops and gagets...what's $100 for an E-Cig that is going to change their life, their health and their family????
And what's the benefit for you to do this??? Do you really think it's worth the $20-$40 the customer in the mall will save? The time delayed in getting them off analogs?
What if you scared that customer away and they think " Well that is really expensive. I might as well stay with smoking my Reds." You give them a card for an online vendor but they lose it, or they go to ECF and get info overload and it's weeks or months before they obtain an E-Cig.
You just cost the small business owner in the mall a customer, a customer longer health issues because they are delayed in getting excited about being a Vaper AND GET THIS ....you cost YOUR ONLINE VENDOR FREINDS financial loss because that person HASN"T KEYED INTO THE SYSTEM YET.
Yep...stand around, trash the mall vendors...that's the way to promote vaping by Raping the Small Business Owner, The Customer and Future Potiental Profits of everyone in this industry...
WTG!!!!!!!!!!!!!!!
And remember if you can do it BETTER AND CHEAPER in RETAIL...GET YOUR ... OUT THERE AND DO IT!
Competition is the best solution for high prices in the market place!!!!!
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