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knnHow does one pay the stupid high rental, run a stall and be profitable?
Ckt $3/plate
Becums
$5/plate
Knn
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Tampines coffeeshop sold for RECORD S$41.6 million, stallholders pulling out as rents increase - Mothership.SG
- Thread starter SBFNews
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Ckt $3/plate
Becums
$5/plate
Knn
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your a bit more is 5% 10% 20% or 50%?
you sound sincere and honest, have you been to church and confess to kong hee for lying yet?
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Who gives a fuck about facelifts to coffeeshops? No aircon leh.
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The buyer of the property is not as stupid or crazy as some think, even with a remaining lease for 72yrs. Those who have $41million in savings do not get rich by being nutjobs.
To put $41million in fix deposit in bank, gathering dust, it would only earn est $490,000 per yr at an interest rate of 1.2%
To buy over the lease of that property, he would hope to earn at least MORE than what the banks are offering for his money. So, if the 18 stalls are paying rentals of $10,000 per month, he would get $180,000 per month or $2.1 million year, which is a far cry from $490,000 he would get from a bank.
Even if all the stall holder leaves, he can convert that space for other uses within HDB's authorization for use which is for retail, which means it can be convert into med clinic, starbucks type cafe, tuition centres, etc which will bring him $180,000/mth.
OR, if he was not that greedy, even a rental of $6,000/mth would be sufficient & earns more than what the banks can offer him, as well maintain goodwill with the stall holders & further popularity of the property, even after paying off utilities & taxes.
To put $41million in fix deposit in bank, gathering dust, it would only earn est $490,000 per yr at an interest rate of 1.2%
To buy over the lease of that property, he would hope to earn at least MORE than what the banks are offering for his money. So, if the 18 stalls are paying rentals of $10,000 per month, he would get $180,000 per month or $2.1 million year, which is a far cry from $490,000 he would get from a bank.
Even if all the stall holder leaves, he can convert that space for other uses within HDB's authorization for use which is for retail, which means it can be convert into med clinic, starbucks type cafe, tuition centres, etc which will bring him $180,000/mth.
OR, if he was not that greedy, even a rental of $6,000/mth would be sufficient & earns more than what the banks can offer him, as well maintain goodwill with the stall holders & further popularity of the property, even after paying off utilities & taxes.
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Food prices should rise between 10 - 20%. It's a derisory price to pay for the privilege to eat your meals in a clean, bright and hygienic condition.
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Nowadays you will find that the prices in some coffe shops with no aircond are the same as that of some low end cafe/restaurants in aircond shopping malls.
One example is Nakhon Kitchen where food taste better but the prices are the same as hot and uncomfortable hawkers/coffeshops
One example is Nakhon Kitchen where food taste better but the prices are the same as hot and uncomfortable hawkers/coffeshops
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Having explored the inner workings of the buyer, now it is time to explore the workings of the stall holder/holders of that location, in order to be well-informed on both sides of the issues.
Many would had heard of the 'OLD CHANGKEE' tangle with the Income Revenue Authority Singapore. For decades, IRAS was investigating on the wealth of the owner, as he could afford private properties, cars, etc and YET, paid little in taxes. So they started to get its officers to monitor the daily sales over a period of time. Most sympathized with the owner who was only selling curry puffs at at mere dollar or slightly more. Then when the investigation information was enumerated, it found that it was not a mere few dollars the owner made, but thousands of dollars daily, & thus his wealth, along with profits from his numerous shops spread nationwide, & thus was made to pay his fair share of taxes to Singapore, to assist in its social expenditure - schools, hospitals, roads, security, etc.
Take for example how much a stall holder would make in gross profits simply selling 'char kway teow'.
I plate between $3 - $5 =avg $4.
10mins to fry the noodles, which can serves 10 person = $40 every 10 mins.
I hour=$240
6 hour work/day =$1,440/day
26 days work/month = $37,400/month
Ingredients/Costs:-
A)noodles, eggs, sauce, utilities = est 50cts/100g serving each plate, based upon economy of scale.
Per day servings =60plates/hr, 300 plates per day = $150/day or $3,900 of costs/mth.
B) Less rental of current est $10,000/mth & costs = balance of net profit = $23,500/mth. Should he engages a worker, it will only be $2,000 of labor costs to run that small stall
Most stall holders are reticent about revealing their profits for fear of IRAS, as well as envy from the population. As much as there are complaints about the hefty rentals, most property owners are not dumb & would had made their research to come up with those rent charges. Singaporeans do not want to take advantage of others, but neither do they want to taken advantage of. Thus, only thru open transparent honest discussions can such operations succeed - fairness to property owners, fairness to stall holders, with a working relationship based upon as partners, & NOT slaves to each other.
Equally, stall & property owners must pay their fair share in taxes for nation's social expenditures. With E-payment, perhaps it will be a better way to monitor the daily sales of stalls owners, & a fairer tax can be made. We all are in the same boat, to survive. It takes money to run a successful, progress & evolving country, with a fair re-distribution of wealth & for social expenditures, without which, there will be no country.
Many would had heard of the 'OLD CHANGKEE' tangle with the Income Revenue Authority Singapore. For decades, IRAS was investigating on the wealth of the owner, as he could afford private properties, cars, etc and YET, paid little in taxes. So they started to get its officers to monitor the daily sales over a period of time. Most sympathized with the owner who was only selling curry puffs at at mere dollar or slightly more. Then when the investigation information was enumerated, it found that it was not a mere few dollars the owner made, but thousands of dollars daily, & thus his wealth, along with profits from his numerous shops spread nationwide, & thus was made to pay his fair share of taxes to Singapore, to assist in its social expenditure - schools, hospitals, roads, security, etc.
Take for example how much a stall holder would make in gross profits simply selling 'char kway teow'.
I plate between $3 - $5 =avg $4.
10mins to fry the noodles, which can serves 10 person = $40 every 10 mins.
I hour=$240
6 hour work/day =$1,440/day
26 days work/month = $37,400/month
Ingredients/Costs:-
A)noodles, eggs, sauce, utilities = est 50cts/100g serving each plate, based upon economy of scale.
Per day servings =60plates/hr, 300 plates per day = $150/day or $3,900 of costs/mth.
B) Less rental of current est $10,000/mth & costs = balance of net profit = $23,500/mth. Should he engages a worker, it will only be $2,000 of labor costs to run that small stall
Most stall holders are reticent about revealing their profits for fear of IRAS, as well as envy from the population. As much as there are complaints about the hefty rentals, most property owners are not dumb & would had made their research to come up with those rent charges. Singaporeans do not want to take advantage of others, but neither do they want to taken advantage of. Thus, only thru open transparent honest discussions can such operations succeed - fairness to property owners, fairness to stall holders, with a working relationship based upon as partners, & NOT slaves to each other.
Equally, stall & property owners must pay their fair share in taxes for nation's social expenditures. With E-payment, perhaps it will be a better way to monitor the daily sales of stalls owners, & a fairer tax can be made. We all are in the same boat, to survive. It takes money to run a successful, progress & evolving country, with a fair re-distribution of wealth & for social expenditures, without which, there will be no country.
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Having explored the inner workings of both property owner & stall holder, & even the needs for national social expenditure, it is time to explore the MAIN INGREDIENT for successful properties & stall holders - the CUSTOMER / CONSUMER
The average income of Singaporeans are between $3,000 to $5,000, certainly not in the earnings league with property owners or stall holders.
As most work, they would need lunch & often have a hurried meal, & as such, would not mind paying a few dollars for quick meal before heading back to work, or to home. However, if stall holders unconscionably pass on a rise or mere swings in commodity prices such as wheat which noodles come from or from oil, utilities, etc, while leaving their profits untouched, then they will in trouble soon.
Singaporeans understood the importance of savings, & if need to spend, they will prefer to have value in returns than to throw away money. The Singapore culture of eating out will change -they may just buy a packet of ramen costing less than a dollar, add hot water & have a quick bite at office/workplace pantries which are more convenient & cheaper than queuing up at sweltering coffeeshops or hawker centers to throw hard earned money away. And buy groceries to cook at home instead, which may take time, but is FAR cheaper than to be a carrot head to be chopped.
When that shift happens, the losers will be property owners, stall holders, & loss to society in circulation of money & revenue into govt coffers for social expenditure. We are in this together. Inflation need not happen.
Commodity price will have swings & is only normal. Even with the RUS war, which caused a shortage in wheat supplies, it is only a 30% shortage & not 100%. Alternatives will & had been found, there had been a rise in prices but which will normalize within few weeks when an oversupply situation will occur. Thus stall holders whom are already making far far more than the average income Singaporean, CAN absorb those rises & swings & still profit, as their costs & productions are based upon economy of scale which will only be a few percentages increase in their COSTS ( not profits), of less than 20%.
If they based their rise on annual inflation of 4%, it would be justifiable, as the average salary person's annual increment is also based upon inflation.
For those stall holders who complain & moan about rents & rise in commodity prices, it mainly comes from 2 groups - A) Those whom prefer to avoid IRAS scrutiny & silently keep their wealth, & B) those who serve crap food & will never have any success as a chef even if the rent is a mere $300/mth, as they will never have customers or only a few while their neighbor stall who serve good & reasonably price food will have long queues
The average income of Singaporeans are between $3,000 to $5,000, certainly not in the earnings league with property owners or stall holders.
As most work, they would need lunch & often have a hurried meal, & as such, would not mind paying a few dollars for quick meal before heading back to work, or to home. However, if stall holders unconscionably pass on a rise or mere swings in commodity prices such as wheat which noodles come from or from oil, utilities, etc, while leaving their profits untouched, then they will in trouble soon.
Singaporeans understood the importance of savings, & if need to spend, they will prefer to have value in returns than to throw away money. The Singapore culture of eating out will change -they may just buy a packet of ramen costing less than a dollar, add hot water & have a quick bite at office/workplace pantries which are more convenient & cheaper than queuing up at sweltering coffeeshops or hawker centers to throw hard earned money away. And buy groceries to cook at home instead, which may take time, but is FAR cheaper than to be a carrot head to be chopped.
When that shift happens, the losers will be property owners, stall holders, & loss to society in circulation of money & revenue into govt coffers for social expenditure. We are in this together. Inflation need not happen.
Commodity price will have swings & is only normal. Even with the RUS war, which caused a shortage in wheat supplies, it is only a 30% shortage & not 100%. Alternatives will & had been found, there had been a rise in prices but which will normalize within few weeks when an oversupply situation will occur. Thus stall holders whom are already making far far more than the average income Singaporean, CAN absorb those rises & swings & still profit, as their costs & productions are based upon economy of scale which will only be a few percentages increase in their COSTS ( not profits), of less than 20%.
If they based their rise on annual inflation of 4%, it would be justifiable, as the average salary person's annual increment is also based upon inflation.
For those stall holders who complain & moan about rents & rise in commodity prices, it mainly comes from 2 groups - A) Those whom prefer to avoid IRAS scrutiny & silently keep their wealth, & B) those who serve crap food & will never have any success as a chef even if the rent is a mere $300/mth, as they will never have customers or only a few while their neighbor stall who serve good & reasonably price food will have long queues
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