A question for all Merchants/Retailers

[depolo]

Hey everyone,

Just wondering what would encourage you to open a store in a brand new retail development?  Free rent for so long, free ad boards etc?

I am nearing completion of my first such development, and would love to hear your feedback so I can give everyone a really great shopping experience!

I know that most of you established guys go purely on traffic, of which my new site has very little - yet. But all popular destinations are new at the start - so what could I do to entice you to bring your business to my retail plaza?

Thanks for reading...

Matt DePolo

[Chelsea Malibu]

Most of your bigger, established retailers have their own Sims at this point however, satellite stores are always a nice addition when they get traffic as it helps boost your brand.

Free rent for a time is good but free rent for a sim with no traffic, does little as it neither drives sales nor get us branding as such, most will rarely take your offer as there is no incentive in it for the merchant or the mall owner.  Also keep in mind that many of us get offers all the time to place stores on malls for free as good stores do drive traffic.

What has worked best for me in the past as both a land owner and a retailer is revenue share payments where you get a percentage of our sale.  That way, if you get no traffic, then you get no lindens and there is little risk for the merchant.

[depolo]

Hey Chelsea,

Thanks for your comments!

I was aiming more at the up-and-coming retailers in general, but if one of the big guys (or girls!) wanted to open a satellite store that would be most welcome.

Do you think there's a market as a base for smaller/newer retailers who don't have their own sim?

Matt

[Chelsea Malibu]

Stick to these boards and you will find many.  Not a week goes by without someone who is asking for cheap to free space as a start up.

You may also want to talk to the building schools such as the Brewery.  Much like a trade school, you should be able to find some good talent and recruit them.

In fact, several of the best known designers in SL started out on one of my sims where I did the same and offered them a revenue share.

[Sassy Romano]

Chelsea has already made good points.  For me, although traffic is a metric, I couldn't give a rats arse about "TRAFFIC".  For me, the worst sales locations are the ones with the very high traffic because they're typically newbie footfall and newbies aren't my target demographic nor do they usually have any money.

I'll take qualified traffic any day over pure traffic and by qualified traffic, that's people typically with money that are my market segment.

Also, as Chelsea says, merchants will often receive many invites to malls and for new venues, I too offer affiliates.  Simple logic, people who work hard at promoting their venue will usually make more from my affiliates.  If they don't and they earn less than rent, why would I rent either?

Here is my statement from my profile to mall owners:-

"Before asking me to rent, please think about the following:-

"Who are your visitors, why will they visit, what makes your place unique amongst other similar malls.  What's the *REAL* traffic, how many of those are RLV users. Do you redesign things on a whim, move the landing point for example?.  How do you promote the mall and vendors, what will you do for ME to increase my sales?".

If you have a new mall then I will offer you my affiliate vendors, the same as I would rez.  That's your chance to demonstate that the location is viable.   If it is, you'll make far more than you would through rent anyway, if it's not then I wouldn't be paying rent for very long either!

Mall owners and merchants should be a partnership, if you just want me to rent to pay for your land and entertainment, i'm probably not the best tennant for you."

The products that I sell are my creations, the product that you "sell" is not the mall space (I can get land anywhere), but the qualified customers passing by my items.  Can you sell that?

Different things work but "the greatest new club with mall attached", "two months free rent", "sploder", "competitions/hunts", bring something innovative to the table if you can. 

I'm quite happy to plop down a satellite store but it won't do anyone any good if there's nobody to see it and of those who do, they have no money and aren't in my demographic.

So the question Matt is, why will people visit your mall, who are you wishing to attract and what will you do to make it happen?

[Medhue Simoni]

It might be in your own interest to no accept rent, and instead accept a small commission on sales from the vendors. This keeps every1 honest to the realities of how profitable the mall is and the mall owner has good incentives to pull more customers in.

[amarock Amat]

I second his idea, and will actualy be starting my own store soon and look for such things.

[Ry0ta Exonar]

land control (own parcel name, authority to ban unwelcome people and such)

blog of the mall to occasionally feature tenats' items(doubtful of its advantage but better than nothing)

Maybe you could suggest some up-and-coming creators who have not got their main store yet should get their main store in your mall. That way they would be advertising their store also by themselves so it may induce traffic.

[depolo]

Hey everyone,

First off, thanks for all of your comments, suggestions and ideas. I must admit that I hadn't even thought of some of what's been discussed!

I think I will be taking on board what's been said, and have set all units to free rent. I will be offering a revenue-sharing scheme, and was thinking about asking for a 20% commission on all sales in my stores - does that sound fair or is that a little high?

If anyone wants to take a peek at the 99% completed development, head on over to http://maps.secondlife.com/secondlife/Newman/74/172/99 and take a look around. All comments welcomed on buildings, scenery, layout etc etc.

I am also going to be converting the large unit (No 9) into a club destination, with a few zyngo machines and a lucky chair to bring people in. We'll see how that goes!

Anyway, I hope to see a few of you pacing up and down my retail plaza!  If you see me working there, pop over and say hi :matte-motes-big-grin:

Thanks again,

Matt DePolo

[Mylar]

Another thing you might wanna do is brag yourself up a tad. I'm sure I'm not the only one who read your original post and thought "yeah, sure, another mall. you and everyone else". I went to your mall honestly expecting another row of prim box stalls with freebie textures slapped on any old way (like the thousands of other malls in SL). But your mall is nice. It seems well thought out, and it's pretty obvious you're a designer of some sort yourself. These are some details you'll want to have out front when approaching designers

[Josh Susanto]

I can tell you what would NOT encourage me: a population of mostly botted accounts.

OTOH, if you're interested letting me open a botting technology shop there, maybe we should talk.

First product: INVISIBLE WEARABLE CHATBOT PRIM.

How long does it usually take someone to notice that the text is green?