Whether you are a global corporate behemoth, hell bent on world domination, or a young, fledging start-up, finding your feet in the world of bricks and mortar, short term retail is a fantastic way to test a new marketplace, start selling and gather valuable insights. Here at POPertee, our team know that brands who utilise short term retail are in a very unique position, in that, when well planned, pop-ups afford retailers the opportunity to leave a permanent impression on their customers.
‘Sounds great, how much are we talking?’
One of the most common questions we get asked by brands interested in this space is ‘So, how much does a Pop-Up shop cost exactly?’ Whilst the words piece, length and string, spring to mind, there are a number of factors which are common to all retailers, and how much you decide to invest in each will ultimately boil down to your Pop-Up goals. Having both a clear set of goals and a budget in mind pre pop-up, we’ve found, are the key ingredients to success. Once these are in place, they allow the POPertee team to not only find you the perfect space, but to also offer advice and consulting on equally important elements such as staffing, fit-out, and marketing to ensure you make the most of your concept store.
To give a clearer picture, let us take a closer look at the cost breakdown of your typical 30 day Pop-Up in a prime city centre retail unit.
A licence agreement is a legal contract which must be drawn up between landlord and tenant. This legal document can be costly to draw up, considering solicitor fees are now northwards of €300 per hour. Rather than going down the protracted and costly legal route, the POPertee team have done their research and created their own bespoke Licence Agreement which will save both you and the landlord time and money. How does that sound?
Estimate Cost €0
According to Pop-Up expert Melissa Gonzalez of the Lion’esque Group ‘ employing the right people is one of the most important steps in planning a pop-up shop’.Given their transient nature, Pop-Ups need to create a lasting impression with your audience. Your pop-up staff become an extension of your brand, acting as brand ambassadors in educating the market on your product offering. Amazon, through the use of ‘device teams’ have done this to great effect. These teams are on hand for in-store demonstrations and any questions or queries which customers may have. Done right, employing the right staff for your pop-up can have great knock on effects, such as transitioning consumers from mere customers to brand evangelists. For a 30 day Pop-Up we would suggest employing a store manager, and 2 brand ambassadors.
Estimated Cost: €2,880 + €4,320 = €7,200
Thanks to the power of social media, marketing is now fast, free and ubiquitous. Big budgets are a thing of the past, instead, a well thought out social media strategy has the power to create a significant amount of buzz and excitement for your Pop-Up. Our advice; use one hashtag specifically for your Pop-Up. Incorporate this hashtag into your tweets in the weeks leading up to the opening and encourage your followers to use it when talking about your shop.
Reaching out to bloggers, creating your own content and connecting with local journalists is another great way to spread the word. Invite them to your opening or give them an exclusive on your pop-up plans. If you do decide to go down the route of traditional PR; column inches will set you back at anywhere between €500 – €1,000 per piece.
Estimated Cost: €0 if planned correctly, up to €1,000 if last minute!
The most important feature of your Pop-Up is location. Pop-Ups are unique in that they allow retailers to go to the place of their customer rather than making the customer work to get to them. A combination of your pop-up goals and target market should determine the location and space you choose, be that shopping centres, busy suburbs or high street retail units. As discussed in our previous blog post, there has been a shift in the commercial property market in recent years from long to short term leases. Retailers, fed up by a combination of economic uncertainty and long term lease commitments, are now seeking short term alternatives to test the marketplace. In the Dublin market, a combination of a scarcity of volume in prime retail spaces, and ever-increasing demand, has driven up rental rates, particularly in the short term. As such, rents in the ‘golden rectangle’, an area stretching from the top of Grafton Street to Dame Street, and back up along Georges Street, now range anywhere between €3,000 – €4,000 per week.
Estimated Cost: €12,000 – €16,000 for 30 days.
Utilities & Rates
Utilities, such as electricity & gas, can cost as much as €500 per month, whereas rates are calculated on an annualised basis. Rather than forcing landlords and would be tenants to work out the cost of each over a 30 day period, POPertee ensures that landlords embed both costs into the rental rate for their space. As such, tenants know the full costs up-front and can budget accordingly.
Estimated Cost: Cost embedded in rental rate
In-Store Fit Out
Pop-Ups afford brands the opportunity to really put their own stamp on a space and tell their story to the world! Granted, the type of unit you choose will determine how much flexibility you have in this regard, but for inspiration, look no further than the House of Peroni Pop-Up in Dame Lane from earlier this year. Neon, the activation agency in charge of the Pop-Up, transformed a dormant rooftop car park into an scarcely recognisable al fresco dining space! A well done fit-out on a high street retail unit will set you back anywhere between €5,000 – €6,000.
Estimated Cost: €5,000
Whilst not an essential element for many pop-ups, if you intend on capitalising on social media promotion and/or drive online sales, we would suggest investing in an internet dongle from your local high street phone shop. At Carphone Warehouse these devices come with 25GB credit and can be topped up if needs be.
Estimated Cost: €65
It is a legal requirement that a landlord has public liability insurance for his space, and tenants must take out insurance for the duration of their pop-up. 30 day insurance will set you back €250 through POPertee’s insurance partner.
Estimated Cost: €250
Sum-Up are an Irish start-up who have disrupted the traditional, and somewhat archaic payment systems out there. This plug and play product is mobile, and with charges of just 1.95% per transaction, is far cheaper than traditional offerings. Conveniently, with Sum-Up’s system, customer receipts get sent straight to their email inbox, allowing you to keep in touch with them post pop-up and eliminate the need for paper.
Estimated Cost: €250
One Size does not fit all
The above is by no means a one size fits all solution for every brand. Rather it should serve as a guide to those who are new to this space. Ultimately, pre-defined goals are the key to any successful pop-up. In this new, retailing anywhere society, through the use of concept stores and pop-ups, brands can now connect on a much deeper level to create an ever lasting, authentic impression with their customers. As ever, drop us a line to have a chat with one of our team about your Pop-Up ideas!