computer games business

Discussion in 'Growing and Managing a Business' started by earthfox12, Aug 23, 2011.

  1. earthfox12

    earthfox12
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    Hi there, I am just new with business. I just want to lay my idea of opening a shop at the mall for a computer gaming. Mostly asian young people love going to malls of which is my target area. Can you advice me an exact location where to place my shop? The mall administrator wants to put me on the rear end of 3rd floor which I don't like. But it's the cheaper area, and I think still need a lot of promotion since I am at the end point. There is this middle area which frequented by passers by but got a high rent price? which one will I chose? Thanks in advaNCE.
     
  2. Fergal

    Fergal
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    I previously worked in a retail outlet that was on the second floor of a new shopping centre. The outlet did very poorly because it got very little passing trade, very few of the shopping centre's visitors went up that high. Saying that your target customers are younger than the ones in my example, do you feel that your customers would make the effort to visit your business on the third floor? Will you be able to promote your business to them so that your target market knows about you, without needing to pass by your door? Are there other outlets on that floor that are targeting a similar market to you? It would be worth your while spending some time up on that third floor, to observe and get an opinion as to what the passing trade would be like.

    It's often worth paying more so that you get more passing trade. However, the question you need to ask yourself is can your business afford to pay the extra rent required? It would help for you to do some basic financial projections to work out how much business you would need in order to make a profit, after you have paid the rent. Is that something you are comfortable doing?
     
  3. GekiDan

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    May we know from what country are you?
     
  4. searchsouth

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    I think it depends a bit on what's located near you too. Are there, for instance, toilets or restaurant facilities nearby? Think about the general route that people take around the mall.

    I'd advise visiting on a couple of days and counting the number of people passing in each location. Try to make sure that you carry out this exercise at the same time (and day) on 2 different weeks, to give you a fair comparison. That should be a good starting point.
     
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  5. Peter Birganza

    Peter Birganza
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    Hi,

    I think you must consult with any real estate agent because he will guide you much better than anyone else. If you don`t have any consultant than tell me, i will recommend you the best one to solve your real estate related and other business issues.
     
  6. Fergal

    Fergal
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    Real estate agents can give helpful advice and many of them are very professional. However, I would also advise caution, the real estate agent's primary concern will be to sell or lease the property on behalf of his or her clients and hence will act in the interest of their client, which is not necessarily in your best interest.
     
  7. GekiDan

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    Is there really a need to seek advise on a real estate agent when renting a mall space?
     
  8. sigma

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    This is happen everyway, the best location is always expensive, no way to get the best location with the cheapest price. This is up to your decision based on your budget and confident. Calculate the cost/break-even, see which one is giving you the biggest nett profit before you make the decision
     
  9. firstchoicecar

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    For me I will sacrifice the high rent price to get a lot of customers,I will go in the middle area where in people can easily see my shop.But the problem in my idea is you take a lot of risk,If I am in your place, I will take first an observation and surveys if there are many people passing in that certain area.
     
  10. sigma

    sigma
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    All have their own risk, other than the rental cost, other fixed cost need to be considered as well such as man power electricity etc. For an example, good location shop rental is $8000 per month while other rear Conner cost only $5000, and the monthly fixed cost is $4000. In this case, the fix cost per month is $12,000 and $9,000. Assume that the margin for each game is $10, then to get to the break-even, you need to sell 40 games per day at shop with $8000 rental fee, and 30 games per day at rear Conner shop. If the traffic from better location are getting double or more than the rear Conner shop, I will choose the better location which cost me higher. However, if the break-even is too big different like 100 units per day and 30 units per day, it is not worth to rent the better location when the traffic is just double up compare to rear corner shop
     
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