Question about stocking a shop

Discussion in 'Growing and Managing a Business' started by pne443, May 22, 2015.

  1. pne443

    pne443
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    Hi all,

    We have recently been successful in renting a small shop off the council in a new building. Our original idea was to sell our artwork products and do a rent a shelf scheme to other crafter's to fill the remainder of the shop. The council said that we couldn't do this as it is classed as sub-letting. So, we now want to offer others the chance to display their products in the shop on a commission basis so it is sale or return and we only take a 30% cut of their sale so no rental charge is taking place.

    I thought that this was quite standard practice in arts and crafts shops as it is how we sell our products at the moment but we are being told by people that this is still classed as 'sub-letting'.

    Please could someone clarify who is in the know. Help and advice appreciated.

    Many thanks.
     
  2. tsubibo

    tsubibo
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    I am no expert. But it seems to me what you are saying is kinda on a consignment basis. You basically show their products and if ypu sell one of them yoy get a cut of the sale, right?
     
  3. Damien Lee

    Damien Lee
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    Well, it pretty much depends on how this is worded in your lease. From what you're describing, I'd say that you're not actually sub-letting but are simply taking a commission on sales which is a standard and fair practice. If you were indeed renting out showroom space, then you would be sub-letting and be in breach of the council's rules. You should reconfirm with the council if you're not sure, but I honestly don't believe charging a commission can be classified as sub-letting.
     
  4. Diane Lane

    Diane Lane
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    @pne443 Perhaps the issue is in the wording, rather than in the practice. Is it possible to obtain a free consultation with an attorney, so you can work on altering the wording of the agreement and how you present it to the Council? Here in the States, radio shows and other media often have attorneys on their shows for certain periods so people can call in and ask questions. I think using the term rent-a-shelf, may have crossed the line into the forbidden territory, while what you're doing seems entirely reasonable and commonplace.

    If you're unable to get around them that way, perhaps you could inquire with local shops and see how they handle this matter. Since the items are handcrafted, maybe you could do something such as opening an online shop, where you'd incur minimal costs, and include those items, but under a different tag, then use that tag or name on the physical items in the shop.
     
  5. m0n2k

    m0n2k
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    Basically it sounds like your trying to make money without renting out the space. If it's against the councils rules to rent out the space, this seems like the only option. They never said you couldn't let people use the space for free, your just taking commission for the sales. It would be best to contact a business attorney if you want to be sure about this. Good luck with your project.
     

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