7. The World Changes.
Antique Malls are as antiquated as Kress’ Department Store.
Antique Malls prey those who have never owned a business.
Seniors are particularly vulnerable.
8. Do not be afraid to ask
questions.
The owner will not be
afraid to cash you check.
9. This is
NOT
A good way to downsize.
This is NOT a substitute
for an estate sale.
10. Questions
Who to Ask?
Ask the Owner/Manager and ask the dealers.
Take note of the questions the Owner/Manager refuses to
answer.
If the owner has more than one mall – go to other malls
to speak with those tenants as well.
Mondays and Tuesdays when dealers are working on their
booths is the best time to speak with them.
11. Questions
Owner or Manager
Many owners hide behind their managers.
You can never get a definitive answer.
Ask if you can go directly to the owner.
12. Question 1
What Price Range and Products
Move?
• What is being sold?
• Large items over $100?
• Antiques over $1000?
• Nostalgia/vintage items under $35?
14. To Generate
Two to Four Times
Your Rent for Revenue
Inventory Value Must Be
TEN TIMES
YOUR RENT
15. Antique Malls Viable?
• Talk to other dealers.
• Be there most of the day several Saturdays a month.
• Watch shoppers.
• Are there shoppers?
• Are they browsing or purchasing?
• What is the value of their purchase?
• Is the purchased merchandise from a vendor with a large
inventory, an exclusive inventory and/or a prominent
location or from a smaller vendor?
16. Question 2
Locations
Location within the antique mall matters.
Of course, managers and owners KNOW this but they’ve
seen you coming!!! They will never tell you this.
They MUST rent out the poor locations as well as the good.
Where are the high traffic areas? Watch traffic patterns.
17. Question 3
Turnover
How many dealers stay six months only?
How many dealers stay one year only?
Which locations have the highest dealer turnover?
Ask dealers if they are generating two to four
times their rent per month.
18. Question 4
The Exclusive
How many dealers have an exclusive?
Show me their booths.
What will you be unable to carry because of their
exclusives?
Look at:
• The number of square feet of the booth
• The value of their inventory
19. Question 4
The Exclusive
Some Antique Malls have you specify the products you will
carry.
Add everything and the kitchen sink.
This is not negotiable AFTER you sign the lease.
Before you sign is the time to do this.
20. The Antique Mall Business
In most antique malls some lessors have
“exclusives.”
This means only they can sell this product.
Typically this provides an advantage.
They compete with no one.
Ninety percent of the vendors do not have an
exclusive.
This ninety percent competes for the remaining
mall traffic.
Legitimate Opportunity or
Lessee Beware
22. Booth Location
The browsing shopper has a sum specific to spend.
They will purchase from the vendor with a good
location and even pay more for an item than
purchasing from a vendor with a bad location.
It is like “Black Friday.” Stores want to be the FIRST
to target the shopper.
Booth owners want to be the first to entice a
purchaser.
23. ANTIQUE MALLS DEPEND ON
THOSE NOT MAKING MONEY
TO KEEP THEIR DOORS OPEN
The reality is generally that only twenty percent of
the vendors pay their rent, cover their inventory
costs and make a profit.
Eighty percent of vendors LOSE MONEY AND just
cover their rent, or cover their rent and do not
cover their inventory, or do not make their rent
EIGHTY PERCENT OF THE DEALERS SUPPORT THE
TWENTY PERCENT MAKING A PROFIT.
24.
25. Question 5
Inventory Value
You will find those dealers making the most money have an
expensive inventory and unique products.
Figure out who those dealers are and value their inventory.
Are you willing to make that kind of investment in a unique
inventory?
Are you willing to invest ten times your rent in inventory?
Or will you compete with the ‘other’ 80% of dealers for the
remaining 20% of the revenue.
26. The Antique Mall Business
Legitimate Opportunity or
Lessee Beware
The 80 – 20 Rule
20% of the dealers make a profit and
generate 80% of the Mall’s revenue.
Are you willing to invest in your inventory to
be in that 20 percent?
27. Eighty percent of the dealers compete with each
other for
Twenty percent of the revenue.
Look at the value of the inventory required to earn
two to three times your rent per month?
Can you generate revenue two to three times your
rent per month?
What inventory value do you
need to support your sales
per square foot of your
booth?
28. For those dealers earning two to three times their
rent analyze the value of their inventory.
Are you willing to invest in that inventory?
These numbers MATTER if income matters.
Be prepared to have a very expensive
inventory per square foot if you want to make
money.
What inventory value do you
need to support your sales
per square foot of your
booth?
29.
30. Question 6
Marketing
What kind of marketing does the Mall do?
How much do they spend?
Where do they spend it?
You will have to use your common sense to
determine whether marketing is effective or an
illusory placebo to keep the dealers ‘happy.’
31. Web Presence and Marketing
Marketing Plan or Hit and Miss
How much does the Mall spend on advertising annually?
Where are these dollars spent? i.e. with the Mall owner’s daughter
at college who updates the website twice a year?
Is social media used effectively or is it an afterthought?
Where is the print media?
Where is the television media?
What are the Google Local rankings for this Mall?
32. Marketing
Who Is the Mall
Marketing To?
Fresh Blood? New Vendors
to Replace the OLD?
or
Does the Mall Market its
vendor/dealers products?
33. Web Presence and Marketing
Marketing or Wishful Thinking?
What is the quality of their web outreach?
How often is it updated?
Do they have real and legitimate events that bring in
shoppers?
Are the events simply dealer appreciation events that
bring in no shoppers, i.e. hot dogs on the Fourth of July!
Candy on Halloween!!! Santa at Christmas!!!
34. Web Presence and Marketing
Mall Events
When the mall tells you about “events” they have do not
assume these “events” draw legitimate traffic and shoppers.
Attend an “event.” If these events are more like free hot dogs
and no one but the vendors are partaking – discount that as
marketing with any value.
Ask them how they market these “events” and review that
marketing.
35. Are the owners providing incentives with
their events?
Are they giving away a desirable product in a
drawing?
Are they providing ANY added value to the
shopper?
(Besides hot dogs and balloons?)
36. “I have an idea!”
Change Plan Ask Questions
Consult with Professionals
even if only informally.
Do not accept that
manager/owner really
understands/accepts the
issues.
Implementation
Waiting
for Impact
Dealer
Renews Lease
in Hope of
Change
Return to
Status
Quo
Plan
37. “I have an idea!”
Change Plan Doomed to fail
Consult with Professionals
even if only informally.
Do not accept that
manager/owner really
understands/accepts the
issues.
Faulty, Limited or
Unprofessional
Implementation
Return to
Status Quo
Plan
38. Antique Mall – Scam
or Real?
If you are ready to jump in without spending a
couple of ENTIRE Saturdays watching mall traffic
and shoppers then be prepared to lay down your
money with no return on YOUR investments.
The only party with the return on investment will
be the Antique Mall owner!
39.
40. Question 6
What Are the Shopping
Demographics
Is this antique mall located in a neighborhood of
families actively furnishing their homes?
Is this a mature neighborhood where you might be
expected to sell a small nostalgic piece?
Can you generate sufficient revenue selling only
small nostalgic pieces?
41. Antique Mall Profits – Scam or
Real?
Location, Location, Location
What is the demographic of the shopping outreach?
Are the homes established and families grown?
BAD!
Is this a young area with large homes and young families?
Good!
43. Aging Neighborhood
Declining Shopping Center Affordable Older Demographic – Less Disposable Income
All Factors
In Decline
Declining
Spending
Power
Increased
Shoplifting
Older
Shopping
Center
Less Affluent
Demographics
44. Question 7
Shoplifting
Does the Mall report ALL shoplifting events to law
enforcement?
If not why not?
Is shoplifting a problem?
Are the cameras manned at all time?
IF THE MALL HAS CAMERAS ASK TO SEE THE
CAMERA FOCUSED ON YOUR BOOTH. OFTEN
CAMERAS DO NOT COVER ALL BOOTHS.
45. Shop Lifting and Antique
Malls
Because antique malls are generally quite
large and typically EMPTY of shoppers
and vendors they are shop lifting targets.
Talk to the vendors about shop lifting.
Ask the Mall whether they report each
incident to the police department.
Most likely they do NOT report these
events. They want this issue kept as quiet
as possible.
Scares off tenants!!!
46. Shop Lifting and Antique
Malls
Are there cameras?
Is your booth covered?
Are they manned? How often?
What is the shop lifting rate?
Does the mall report shop lifting to law
enforcement or just keep it quiet?
47. Ask to be taken into the video camera surveillance room.
Actually LOOK at the view of your proposed booth.
Make sure it is completely covered.
If it is not covered by surveillance put it in your contract
that cameras will be added to cover your booth.
Do not sign the lease until you see the
cameras from the surveillance room.
Make sure the cameras are focused on YOUR
BOOTH.
48. Question 8
Competition
Open your eyes to competition.
Young families do NOT want antiques.
Mid-century modern appeals to young families.
The buyers for your mother’s antique malls are
dwindling and will be in nursing homes in ten
years.
49.
50. Destination Vintage Flea Markets are the
BIG BIG THING
Rose Bowl Flea Market
Pasadena College Flea Market
Long Beach Antique and Flea Market
Fresno Flea Market - Big Indoor Fresno Flea Market
HUGE COMPETITION
FOR ANTIQUE
MALLS
53. Antique Mall Competition
Expensive Furnishings – what is your competition?
Do interior designers use this mall as a resource?
What outreach does the mall have to designers?
Vintage Items – what is your competition both
within the mall amongst the dealers and in the
geographic area?
Realistically how far will a person drive for vintage
shopping?
Ebay or Etsy Competition - How many of these
vintage items are offered on Ebay or Etsy?
54. Antique Mall Competition
Other Antique Malls
How does this one stack up?
Realistically what other antique
malls are direct competition?
Watch their traffic and
shopping trends as well!
55. Antique Mall
CompetitionHome Furnishings
You are competing with Ikea, Nebraska
Furniture Mart, Craigslist, Offer Up, Rooms to
Go, discount malls, malls and companies that
offer financing.
Garage Sale Pricing – you cannot afford
garage sale pricing and the current painted
furniture trend relies on garage sale, throw
away furniture.
This is a business model that is DYING.
56. Estate Sales Are
Now Online
Not only has your competition for buyers
become more aggressive
Your competition for product is more
aggressive
Estate sales are now online.
Buyers can bid online.
You are competing with your own buyers and
other vendors as well for merchandise.
57. What are the Mall’s
Gross Sales
Look at the Overall Mall Revenue (too)
Divide Gross Sales by
Square Feet
Compare the revenue per square foot with
other sales venues.
58.
59. Antique Mall Competition
Dying Mall or Thriving Mall
Ask the landlord why this Antique Mall is not one of the
many dying Malls. What makes it different?
Technically, the relationship with your landlord is business to
business.
Tenants are expected to be business savvy.
Know before you sign that lease.
Most tenants have no business experience and are on the
verge of have a losing situation.
60. Antique Mall
Competition
Can the Best Public Relations Firm
The Best Marketing
Drive Demand
Ikea --- Nebraska Furniture Mart ---
Craiglist --- OfferUp--- Repainted
Furniture Trend --- Rooms to Go ---
Cheap Financing
Glittering Designer Districts Competing
not only for wholesale but retail.
61. Antique Mall Competition
Can the Best Public Relations
Firm
The Best Marketing
Drive Demand
Probably Not.
Unless the Antique Mall becomes
a destination with shopper events
it will never, never thrive.
62. Question 9
Owner/Manager Competition
Does the owner or the manager have a booth?
This means they are competing with you on an
unlevel playing field and have access to crucial
information including:
• Best booth locations
• Products selling
• Price of products selling
63. Antique Mall Excuses
Owner / Management
Competition
Owners and managers compete for items being sold
at estate sales.
They have inside information on what is actually
selling, items, price point and location.
This is information they do not share with you.
Typically, they give themselves the best locations.
Does you owner/manager compete with you and
have a booth in the Antique Mall?
64. Question 10
Owner/Manager Involvement
Does the owner meet with the tenants or make
excuses for not discussing mall issues in a group?
Does this antique mall solve problems or make
excuses?
65. Antique Mall Excuses
Owner Involvement
Is the owner willing to step up
to the plate and have mall
tenant meetings or do they
dodge these important issues?
66. Owner Not Willing to Have
Tenant Meetings
The owner will gladly meet one on one with a successful and
large tenant.
These tenants have a direct line.
If the owner is not willing to have group meetings with the
80% not generating good revenue – RUN!
There is a REASON the owner dodges group meetings!
• There is no benefit for the owner!
• The owner has no intention of helping that 80%.
67. Antique Mall Excuses
Insidious Mall Suggestions
The Mall staff is adept in suggesting the problem is yours!!!
Better merchandising will bring better results!
Low pricing (which will not pay your rent) will bring
better results!
Rotate your merchandise (which means more
investment) good for the Mall but is that good for you?
This is a great hobby! Did you really expect to make
money? Some people play golf! I do this!
This is all about having fun! Are you having fun? Did
you really expect to make money?
68. Antique Mall Excuses
Insidious Mall Suggestions
January is a bad month – after Christmas.
February is a bad month – no one wants to get out.
March is a bad month – spring break!
April is a bad month – Taxes!
May is a bad month – end of school activities!
June – July are bad months – vacations!
August is a bad month – back to school!
September is a bad month – getting settled after the summer!
October is a bad month – families are busy!
November is a bad month – getting ready for the holidays!
December was bad – people were worried about the economy!!!
69. Antique Mall
ExcusesInsidious Mall Suggestions
It’s the weather stupid!
Too Hot!
Too Cold!
Too Nice – customers out enjoying it.
Too rainy.
Too muggy.
70. This Ain’t Your
Mother’s Antique Mall
What is your Mall owner doing to help the
tenants not making a profit?
If they are simply churning tenants then do not
be surprised if you are part of the CHUM
71. Torchlusspanik
This is a German word.
It means the fear of diminishing opportunities as one
AGES.
Antique Mall Owners
typically prey on seniors who
have never owned their own business
to be their unprofitable 80 percent.
Ask the hard questions.
Get HONEST Answers.
72. Has This Antique Mall Owner
Ever Filed for Bankruptcy?
Personally or with another
antique mall?
73. An antique mall owner
can file for bankruptcy
owing YOU money
for your sales.
75. Rent: $500
Revenue Should Be: $1500 to $2000 per
month
Inventory Value Should Be: $5000
in order to generate sustainable revenue
Does the Mall have the traffic to generate these buyers?
Do you have a unique product and a following to generate these
buyers?
76. Rent: $500
If you cannot turn over half your
inventory MOST MONTHS you cannot
make it.
If you genuinely expect to make even a
small profit ---
79. Exploitation of Hoarders
Hoarding has received national attention with
television programs.
Perhaps the most insidious aspect of this business is
its attraction to hoarders and exploitation of their
mental illness.
Antique Malls are NOT a solution to addressing this
disease.
Antique Malls represent a complication of this
disease.
81. Antique Mall
Showroom
Square Footage
30,000 SF
$5.00 a square foot sales should generate
$150,000 in gross revenue a month for dealers to
break even
$300,000 in gross revenue to double rent
$450,000 in gross revenue to triple rent
82. The chances your antique mall
is generating $10 a square foot
are extremely low.
85. Antique Mall ROI
The little bit the owners scrape off
your sale is irrelevant.
The owner’s
Return on Investment
depends solely on drawing in the
eighty percent that pay the rent for the
twenty percent actually making an
income.
