This trader submission goes to the heart of the current rents
debate in the Deli Hall but has wider implications. It raises questions about
the role of a Public Market and addresses some important principles as we move forward
into renewal. Every trader should read the content.
"I
understand the Board of the Queen Victoria Market and MCC will be discussing
policy on rental at QVM.
Deciding the
bases for rent goes to a fundamental ideological decision about the future of
the market: On the one hand one can take the view that rental should be based
on what can feasibly be obtained for the property and anything less is simply a
business subsidy. This approach reflects the perspective that the only
legitimate measure of the success of the market is the revenue raised for
council.
On the other
hand, one can decide that Melbourne deserves a vibrant, interesting and
affordable market and if that requires reduced or reasonable rent it can be
justified as a direct investment in the health and well being of the people.
If the board
chooses the path of maximum rental that money disappears into council revenue.
Eventually only businesses of a certain size and income will be able to afford
space at the market. The size of the tenancies, even with the best of
management, limit what can be achieved. To service a larger rent, businesses
will have to be of a larger scale –
have multiple outlets.
This will make it harder to find owner-occupiers and eventually result in the “mall –ization” of the market. If rents skyrocket, something
will have to be sacrificed. Will it be staff – our biggest expense? Will it be product quality? Will it be low prices?
Will it be our ability to sell a wide variety of merchandise, including
products that are not easily obtained elsewhere, restricting our investment to
ideas with a proven track record? That doesn’t sound like a market.
We market
traders have made a conscious decision to do what we do, be where we are. We
are not in the market because that was all we could come up with. We are in the
market because small business is what we love. We don’t want to grow to the point where
our customers are strangers and our staff managed by HR. That would be a huge
detriment to the popularity of the market. A lot of lip service is paid to the
iconic nature of the QVM, but that nature is us, the traders. We are the “local colour” featured on Facebook and Instagram pages the world over. We are the
businesses who call our customers friends, just as communities have for centuries.
If high rent forces a change in business ethos at the market then that change
will be reflected in declining patronage and a loss of enthusiasm for the
market from, customers, investors, media, business, everyone.
Large cities are
really just a collection of villages. The QVM is our market square and has
multiple functions. Primarily, it should be a source of affordable, fresh food
for the people of Melbourne. That is the traditional function of markets the
world over. Most food markets (not malls and shopping centres) offer reasonable
rent in the expectation that those savings will be passed on to the consumer.
This is what makes the market viable and popular as an alternative to
mainstream outlets.
A secondary but
vital function is to provide a place for start-ups. People who have a business
idea they want to try but not the huge financial resources necessary to gain
access to a shopping strip or mall.
When setting
policy for the market it is tempting to assume the correct thing to do is get a
couple of valuations, set and forget. The market is a much more complex
organism and deserves thought and care."
Catherine
Underhill
McIver’s
Coffee & Tea Merchants - Queen Victoria Market
COMMENTS:
13/07/2014 21:50:19 rental philosophy "Very well said, Catherine..
Its quite simple really. If you want a good market, if you want a busy successful market, it must offer products and goods cheaper than your fancy shopping centres. The only way traders can offer this, is by having a place to trade at a discounted overhead. If the council want to have an iconic market, then be like the traders, offer your goods (rent) cheaper than market price...you make enough profit as it is." Andy
13/07/2014 21:50:19 rental philosophy "Very well said, Catherine..
Its quite simple really. If you want a good market, if you want a busy successful market, it must offer products and goods cheaper than your fancy shopping centres. The only way traders can offer this, is by having a place to trade at a discounted overhead. If the council want to have an iconic market, then be like the traders, offer your goods (rent) cheaper than market price...you make enough profit as it is." Andy