Talking into the wind - Fremantle markets
Our research, data, statistics, evaluations and costly market advisers tell us blah, blah, blah. We must be right. We are the boss and this is a matter of autocratic rule, it must be that way, otherwise the little people would de-throne us!
Shop owners with decades of experience couldn’t possibly know about product demand, competitive pricing, stable long term profit, natural evolution, effective trading hours, customer preferences, demographics, product display or ‘The X Factor’ which was the key to the markets previous success. Least of all, the symbiotic relationship and personality of the whole.
If more than 150 business men and women got together and all had a say it would be anarchy and mayhem; they would form an association and try to influence or even disagree with us. They might even start wanting some of our profits to go into their own pockets.
Just take a look at that last association tried to argue:
Rents. We have had 2 evaluations and the massive price hikes are Fair.
Those 30 businesses that walked out chose to do so. Others are up for sale and not selling, many have decreased their stall size to a more affordable rate and we hear the whispers that many more are winding down but that will sort itself out. There are always others lining up to replace them. If they have to increase product costs to get by then that is just business. It is not our fault if customers stop buying and then stop coming. We expect more professional people will come in and replace them. Well, so far there is a severe downturn in interest but that could be the recession and we can offer new people cheap rents for a while to give them a start.
A Working group. The Council, Stallholder Representatives and Us - all getting together to discuss different points of view or negotiating and troubleshooting.
Well we tried that and it didn’t work. You can’t work anything out if 3 perspectives are considered. It’s our market and we do things our way. What would shop-keepers know about rent? It’s about rent not retail!
Air-conditioning. For years now they have complained that it’s too hot in summer (40C) and too cold in winter (Gale force winds and rain)
Well we have said it is a matter of priority and we will get to it. We painted the roof didn’t we? They don’t understand all of the complications and costs involved. All they moan about is people feeling sick and losing on average 2 months trade each year.
Trading Hours. That’s a no brainer for us; extra days guarantee extra rent. 5 days rent is obviously greater than 3. We can double OUR profits by doubling the rent and then double that again by doubling the days of trade.
They are so negative about this. All they say is that no one shops at the markets during the week. We believe that if we open then the people will come. They all sit there reading books and falling asleep and whinging to each other. It’s this kind of negativity that is the real problem. We tried opening on Wednesday and it was a huge flop because they wouldn’t give it a fair go. We opened on Thursdays and they all whinged about paying rent out of their own pockets. It’s just the negativity and resistance to change that is the real problem.
Redevelopment. Separate the market into 2 areas. Food is the way of the future and our outdoor area can be a food Mecca in Freo.
I can’t even comment on this again it’s just too obvious. Read about the wise old King Solomon – just go ahead and cut the baby in half.
Leases. People are happy to sign our leases. These are private contracts and should not be discussed in the public arena.
Lease? Leasing agreements? What exactly are these costly documents? Secure tenure? Month to month tenancy? rules and regulations?
Run – don’t walk; straight to your legal advisor.
Evictions. We had to evict the spokespeople of the association – they were troublemakers.
They were ‘troublemakers’. They argued about the rents, held discussions with the Fremantle Council, wrote letters of complaint and even had a public rally calling for our eviction. They have spoken with the media and there have been many articles about stallholders losing their livelihoods, our intimidation, questionable outgoing expenses and our ability to communicate with them.
We bought Ann in to meet with them but when she said she didn’t want to hear about their problems or criticisms they froze her out. When she met with the spokespeople all they wanted to talk about were leases, evictions, relocations and the bloody rents again.
We only wanted to address the problems of the bus stop, cigarette butts and products made in China. The meeting was a waste of time. Like Annie says, they don’t respect us.
All of this is just another outline of issues already addressed by the stallholders association. I’m talking into the wind. The irony is that if the Murdoch’s will pay out a lot of money to professional researchers when all of this is information is freely available to them. It’s not what they want to hear and it’s not from the source they wish to hear it from.
I am offering this with the best of intention and with the hope that an open mind can comprehend it. I can even make it really, really simple.
Affordable rents.
Secure tenure.
Safe and suitable environment.
Respectful communication.
Clear definition about what a market is.
Appropriate trading hours.
Unity.
Win-Win for all party’s.
*Buy stalls back - If YOU want possession.
Sonya Green blogspot.
http://sonyagreen.blogspot.com
Labels: fremantle market stallholders, john and jamie murdoch, markets, sonya green blog
posted by Editor at 8:13 AM
5 Comments:
The airconditionining problem has now partially been resolved, as promised. They have finally installed 3 "eco cooling systems" which is a fine mist blowing from pipes supported by large fans. Unfortunately, its' effectiveness is limited as all 3 systems blow directly onto Anne Meyer's daughter's coffee stall. What an incredible insult to stallholders!
Let’s not see this girl as the favoured one but let’s use her as an example of what is really true.
The Murdoch management is very good with spinning theirstatistics and quoting their research figures to give the impression or justification of their truth. I have often wondered why they continue to promote their assertions when the reality is so obviously and consistently proving them wrong.
Last Sunday it was 43C in Perth; inside the market must have been much hotter than that. The air cond argument has dragged on and gone nowhere for years. The Murdoch’s stress it is a matter of priority. A huge amount of trade was lost this pre Christmas on this one issue alone.
No matter what the Murdoch’s or the council say the truth behind this action is apparent. Now that we know that they do indeed have this level of awareness we need only to apply it to the rest of the market.
Everyone was stunned when the Murdoch’s quoted their professional market research and came up with numbers stating how many visitors where spending what amount of money and the average income per stall was estimated at around $10,000 per week. (Which they used to justify the high rent increases)
Now that we have Ann’s daughter trading as an independent stallholder can we use her as a test case and ask her if she is in fact taking in the average $10,000 a week? If she is not then surely the reality should override the so called qualified estimate.
Is this shop paying the same per metre rental as everyone else? To argue fair market rent then it would be assumed that this girl would be expected to pay exactly that. If this shop is paying anything less then we can only conclude that fair market rent is less than what everyone else is paying.
Richard Murphy questioned the accuracy of site measurements so this shop is an interesting test case. Given that tables and chairs have been placed around her coffee shop we can only wonder if her kiosk is her total space or if this alfresco area is included. Management describes it as a customer sitting area but isn’t it really just free metreage for the coffee shop?
Shouldn’t the coffee shop inside also be afforded a customer sitting area?
Now that the new cooling system is in place I would also wonder who is paying the outgoings on this. If only the coffee shop is being cooled then do we assume that the coffee shop picks up the tab or is it divvied up between management (in their air cond office) and the other stallholders who sit and sweat on the outskirts.
Speaking of outgoing expenses, does the coffee shop pay its own electricity? Does it have the same lease agreement as everyone else?
It’s no secret that some of the shops on the mall and street side are set to become cafes or coffee shops. Could one of these prime locations be waiting for the daughter to simply move into? Previously she would have had to buy one of these but how wonderful for her if she can just move in. We all remember the fish shop being bullied out; empty handed even though it was quite possibly worth tens of thousands of dollars at the time. What’s the bet that Ann’s daughter walks into one of these shops in the very near future?
Well I’m sure we are never going to see the true figures on the coffee shop. If it operates on exactly the same conditions and costs as everyone else and if it pulls in $10,000 each week then there is no argument really, is there? The coffee shop was also a part of the Wednesday experiment and the Thursday pre Christmas trade – how did that go? Surely the coffee shop figures would be a perfect indication of mid week trading.
If this shop is operating on exactly the same system as everyone else with no privilege or favour then surely we can all use it as a prime example of overall viability. But if the rent, outgoings or conditions have been modified in anyway then why?
Oh and one last thing - are those coffee beans Australian grown?
November 2013-It is happening yet again. The Fremantle Market Manager's are setting up their own market stall to compete with rent paying tenants. Using Fremantle residents market space for their own use, one can only hope they are paying the same rent as everyone else for the space.
Of course. It's the nature of the beast.
August 2014. Update on previous comment. The above mentioned market manager's merchandise shop which was set-up in competition to paying market shops folded after 3 weeks. Hmm not so easy to run a successful shop 29 hrs a week with high rents at the Fremantle Markets? Well done to all the stall holders who have been able to manage this.
Meanwhile 5 years on with new management
some tenants surviving for 20 plus years are finding their 5 year leases have no option to renew and no option to sell, and are silently evicted with no reason other than making way for a new business.
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