Grrr...gotta vent!

[scifichik]

Has this ever happened to anyone else? I'm curious to compare experiences.

We have a booth at one of the local craft malls (but it's not our only venue for sales). It's one of those arrangements where you pay monthly rent and get a check once a month for whatever sales you've made.

The first thing the owner said to us was, "I hope you're not here for your sales money, because I don't have it," and then proceeded to tell us some long-winded story about how she only had $30 in her account because the credit card service had caused $1,500 to be withheld from her and she was fighting with them over that, and how it had already caused over $1,000 in overdraft charges at her bank.

Needless to say, we were stunned. We rented our booth in April and paid that month up front, then the deal was at the end of each subsequent month, she takes your booth rent out and whatever is remaining is your sales money given to you. April was slow and we only sold two candles, but knew that things would pick up, and May has been much better. We've had decent sales there from word of mouth advertising, and have $45 coming to us after booth rent for May is taken out.

Then the owner pointed out that our sales had been good, better than the other candle booths there, but our prices were a little lower than the others so we would either need to raise our prices or she would have to ask the other two vendors to lower theirs. I didn't know what to say. We have 300% markup, have good product, and is priced fairly at a amount the we would find attractive if we were customers. We didn't purposely undercut anyone's prices, as the other vendors didn't have prices listed, so we had not way to know what they charged---and it seems unfair to our customers to jack up our prices to match someone else's, simply to level the playing field. She doesn't get commission on the sales, so it would seem immaterial what prices different vendors set; so long as she collects the monthly booth rental, she has no financial ties to the cumulative sales made.

There is a big annual "heritage festival" the first weekend in June, and this is a big traffic time for our town. She wants us to completely stock our booth the Thursday before the event and says that she can pay us what is due us on the Monday following the event. Oh, yes, and pay June's booth rent up front...so we pay her for two month's booth rent. Naturally, this is all to her benefit.

We plan to go tomorrow to pull our stock and tell the owner that this just isn't working out for us. If she doesn't have cash to pay us our piddly $45, she can write a post-dated check for the Monday following the big festival which was the date at which she said she could pay. Our business checking account includes funds recovery services and insurance, so if someone bounces a check they write to you, the bank covers it then goes after the person.

What a weird day!

[NaturallyTru]

OMG...sounds like someone doesn't know how to run a business and got in over her head. I, too, would pull my stuff out!

Trudi

[deb426]

I agree. Nothing good can come of this. Get out before you lose more.

[Candybee]

This sounds like bad business to me to. There is no reason why you should have to make price changes to your products or change them in any way. I thought these mall booths had contracts maybe I'm wrong. If I were to pay rent for anything I want a contract to protect me and my products.

This manager is bad news. Her gossiping about her own money problems was your first dead giveaway. Get out now!

[rebeccajo99]

I agree with everybody else. That just raises a lot of red flags in my book and I wouldn't want to sell another item for fear of not getting paid for it.

Plus, I wouldn't want people to tell me how to "run" my business (raising/lowering prices). I don't mind constructive critizism, but not telling me to do something.

[momtohaley2004]

First off, by posting here, you are obviously upset about the situation (who wouldn't be). Secondly, if she can't pay her bills, what makes you think she will pay you?

Take it from someone who has been there, done that and bought the t-shirt. I did a similar set up in a mall once. Over 3000 dollars in product. Always an excuse on why he couldn't pay me (or he wouldn't be there when I went to get paid). Eventually, I did get a check from him, only to have it bounce and my bank froze my entire account. I had to get mean and eventually was able to recover 1600 dollars through a money order from him. Never saw anything else and come to find out he wasn't doing this to just me. He ended up getting arrested and did a bit of jail time although he is out now. I never did recover the rest of my money but was lucky enough to be there with mall management (who had changed the store locks) pulling my product off his shelves when the detective came in and seized everything in the store for evidence. I was allowed to go ahead and get my product but only because I was there right then. Mall management locked him out of the store and everything became state property. I ended up losing over 2000 dollars total with this guy.

Get out while you can is my advise. I know $45 dollars may seem like a lot but take that $45 and multiply it by a few months and it adds up. You don't need the worry or the stress. Get out and don't look back.

[islandgirl]

I had a similar problem years ago with a rental booth, I took my candles out that day before I left. Thank God I did because a few weeks later, she just up and closed shop. No one got paid and their items were stuck in there.

Many people lost money and product..

GET OUT TODAY!!!

Edited May 28, 2010 by islandgirl

[LuminousBoutique]

oh hell no.

Get out. Nothing good can come from this.

[scifichik]

Thanks for the input from everyone.

We went in at lunchtime today and asked how her banking situation had worked out for her. Even worse, she said.

I told her I hoped things turned in her favor soon and that the arrangement was no longer working out for us as well as it was in our other venues of sales, so we were going to pull our stock from the booth. We needed a prybar to get her jaw off the floor. "But I said I would pay you after the festival!" she said. "I just don't have the money now."

I said that I understood, and not to worry--she would be paying us, and it was perfectly acceptable to give us a check dated for the 7th, which is the Monday following the festival weekend.

She really didn't want to write that check, and even offered decreased booth rent for subsequent months if we would restock the booth before the festival, and continue on with her. (And still play the "I don't have your money card," the next time? Nah. I don't do that dance more than once.)

She got really pouty and snippy, but we expected it and my sister went to her car to get our boxes. We packed our stuff, collected our check (which is covered by our bank's check recovery service if it bounces when we deposit), thanks her, and went to lunch happy to have that odd experience behind us. Word travels quickly in a small town, and we've already had invitations from two retail shop owners (one an antique store and the other a bakery) to carry our products and take orders on a small commission---all because they heard we cut our ties to the craft mall lady. Weird, but works for us; sales are sales

Tomorrow is a more fun day. A local hobby shop invited us to a "show and tell" demo on our soy candles, and then we get to set up a table for a couple of hours to sell---no charge. A little bit of work, and unexpected but it'll be an informal presentation and a good marketing opp for us.

Hope everyone has a good weekend.