Hi all,
My wife want to open a boutique fashion store for female. We have stock, supllier but we have no idea about shop fitting options. We are being offered a complete empty and have to built everthing from scratch. Anyone have any experience about the cost of set up a new store (nothing too fancy but need to look good).
Thank you in advance
Are there any other sites that have been fitted out partly already? The only reason I ask is because so many fashion boutiques fail and I'm thinking you'd want to reduce your capital expenditure as much as possible at the beginning on what is a risky venture.
Consider trying to buy fittings from stores as they're closing down, you may pick up some bargains that would help you. There seem to be plenty of businesses dedicated to shopfitting:
www.shopforshops.com
www.shopfittingsstore.com.au
http://www.spacewall.com.au/
Good luck, hope everything goes well for you both!
Thank you Halo375,
The owner of the place that i rent will contribute up to 200k to us to fitting the shop brand new. If we can do it cheaper, we can use the left over for stocks, wage or secure rent for a couple of month.
I am looking around for closing down shop but none has show up so far.
200k should get you quite a bit I would have thought. I know a person recently converted a large non restaurant space to restaurant for about 500k.
Very generous owner, unless there's a catch?
shop fittings are super expensive.
i remember in the 90s my parents had a newsagency - every so often gold lotto would make you do a refit - the serving area that most newsagents have was around $30k. the rest of the shop wasnt touched.
@PVA: A restaurant would be the same, right? They had to build a kitchen, bar and toilets. That can't be cheap?
I was comparing a Boutique fashion store to a large restaurant and 200k (or more) to 500k sounded about right…but I'm guessing and there are a lot of unknown variables in this scenario.
@John Kimble:
hard to guess John.
I am betting all the stores in the big shopping centres selling womens fashions, are over $200k. light fittings, counters etc.
commercial stuff is crazy price land.
but yes, $200k should be fine you would hope.
OP thinking if they can do it cheaper they can pocket the difference - that wont happen.
IKEA!
$1450 and $1565 per sqm
Just open a cafe like everyone else.
Smashed avocado is very profitable
The $200k budget should handily cover even a high end a fashion shop, considering I see plenty of pop up fashion places that look to have spent less than $5k…
With that sort of budget I would definitely be looking at quotes/proposals from a bunch of shopfitters, and would probably also look into left field options to get something really unique, like a designer or architect who isn't a traditional 'cookie cutter' shop designer.
Look closely at the terms of the lease. A $200k fit out fund is very generous, and rings alarm bells for me that you aren't getting a good deal on the rent.
Hi,
The term is 5 years also they will get 7-10% of the profit if i went over 1 million in sale/year. All that are on the Offer letter, but not yet in actual contract so i have to see a real contract. And yes, the rent is not that cheap either.
I dont know what kind of catch are u mention about?
I don't mean a trick. Just high rent and inflexible terms.
What happens if you are unsuccessful? How long are you stuck paying high rent, and what options would you have to sub-let or get out of the lease if you needed to? Would the next tenant pay market rent, or would you be obligated to "top up" their rent if you needed to vacate the lease for the rest of its term? Did you have to offer any personal guarantees that would leave you liable if you found the business unprofitable?
Most new stores want short leases with few commitments in case things go less well than hoped.
This. I would have a lawyer look over the contract. Make sure you fully understand it and have a professional opinion. A lawyer might cost you $1K, but could end up saving you a significant amount because you did something you didn't understand.
Step 1: Hire someone to design the layout of your store
Step 2: Hire a builder to build it
Cost depends on the look.