Wednesday 19 October 2011

Rent Increase Letter

Here is the content of the QVM letter sent out this week regarding rent increases. For a standard double stall trading 5 days we calculate the increase at 3.8%

 Dear Trader,
I am writing to advise you of an increase in stall fees for daily licences effective from Thursday 3rd. November 2011 as follows:
                Tuesday                               $20.00
                Thursday                             $20.00
                Friday                                  $22.00
                Saturday                              $37.50
                Sunday                                $51.00
                (Rates are quoted exclusive of GST)

Whilst we appreciate that the past 12 months have been particularly difficult for the retail sector, this increase is necessary to cover increasing operational costs, rising utilities and other charges (ranging from 8-15% per annum in some instances). As in the past 2 years (where increases have been kept below CPI) we have managed to keep this latest increase to a minimum.
In response to the challenging retail environment, we have also increased our marketing spend; raising the market’s profile significantly through television advertising and an increased presence on commercial radio and in daily newspapers as well as in the tourism sector. In all we have increased our advertising spend by over 30% over the last 3 years.
We have also assisted stallholders by providing retailer training to keep them abreast of changing trends and to ensure that they are well placed to face these challenging times.
We assure you that we are making every effort to contain our costs and to make savings where possible without compromising services.
Thank you for your understanding.
Yours Faithfully,

Anne Munday
Property Manager

Comment from Anonymous - 23/10/11 "As our rent is so cheap in the first place i would be happy to pay a extra $100 a week to go into a advertising fund to pay for a lot more t.v. adverts to bring in more people to spend money here.
I think we would make the $100 back and some."

Editor - 24/10/11 "Thanks for your input Anonymous. Comparing rents across Melbourne's retail scene is not easy but if you take the recent Morgan Stanley analysis ( my calculations suggest we are paying about double what JB Hi-Fi and The Reject Shop pay per square metre. More TV advertising certainly has its merits particularly if it can be directed at tourists."

Comment from Anonymous - 26/10/11 "Hi Anonymous, rent may be "cheap" for you (and half your luck). But if you talk to many traders, and it seems that it would be a good idea for you to stick your head out of your stall, and have a chat with your fellow traders every now and again, you may find that other traders don't have quite your money to throw around. Oh, and if you work out how much rent we are collectively paying to QVM Pty Ltd/Melbourne City Council each week, they really don't need any more to simply be doing their job!
Just another anonymous trader "