Need some advice

[Beachkid23]

I made a post a couple months ago about opening up a booth inside of an antique mall. I’ve been super busy working there and I’ve done pretty well the first couple months. Fast forward to last month and my check bounced when I got it. I got another one and it went through. This month I go to cash my check and they turned me away due to lack of funds.

We get an email saying that everything should be sorted out by the end of October. To please work with them and they will get everything squared away. They’ve been in business for 20 yrs, just new to our location. With that being said what would you guys do? Pull everything and walk away or give it time to work itself out? There’s a possibility that one day the doors could be locked I’m sure. Our area is very seasonal and that starts soon.

I’m not really sure what to do. This place has really good potential but rubber checks were not part of my dream either.

 

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[Bengsxr]

Waiting a week is understandable but waiting a month to be paid is unacceptable and foolish.

 

[Nitric]

A thought...They have been in business for 20 years? And this is what's happening? I'd be nervous!

That's a tough one. I'd at least pull the best stuff if you plan to wait it out and see. They should also go above and beyond making that bounced check right!!!!

If I understand your post right..Their check hasn't been good twice? But you did get the first checks money eventually? That's a real bad sign!! They aren't financially stable. I understand when a business is starting times get tough, but someone established, that is just giving you "your" money minus rent and their percentage and bouncing is real bad news in my mind. Also, as your saying..if this is happening before the slow season is an even worse sign.

Added...After reading your above post again...It also says they should have it sorted out by the end of OCT? Dude...Get out! There are other malls! There are other outlets that will cost you less to sell. Add up your time,cost of items,rent,percentage, etc...If your still making money? Is it worth the risk of losing what you've already sold? Or what's in the cases?

I've never heard of such practices...If established and in good standing with the bank? They could have had that sorted out in a couple days. They are floating money. They don't have "your" money from your items now! Your loaning them money!

 

[Beachkid23]

A thought...They have been in business for 20 years? And this is what's happening? I'd be nervous!

That's a tough one. I'd at least pull the best stuff if you plan to wait it out and see. They should also go above and beyond making that bounced check right!!!!

If I understand your post right..Their check hasn't been good twice? But you did get the first checks money eventually? That's a real bad sign!! They aren't financially stable. I understand when a business is starting times get tough, but someone established, that is just giving you "your" money minus rent and their percentage and bouncing is real bad news in my mind. Also, as your saying..if this is happening before the slow season is an even worse sign.

Added...After reading your above post again...It also says they should have it sorted out by the end of OCT? Dude...Get out! There are other malls! There are other outlets that will cost you less to sell. Add up your time,cost of items,rent,percentage, etc...If your still making money? Is it worth the risk of losing what you've already sold? Or what's in the cases?

I've never heard of such practices...If established and in good standing with the bank? They could have had that sorted out in a couple days. They are floating money. They don't have "your" money from your items now! Your loaning them money!

I pulled all my Sterling today. I had a lot of it there.
This is the 2nd month of bad checks. Did get the 1st one cashed but it took a couple days.

I guess what happened is the dad passed away and Family took over. And now it looks like a mess. Its kinda expensive there I think and rent suppose to go up too. Time spent is crazy. Plus fees and expenses. Heck made more on ebay this week then all last month.

The whole floating money thing is an eye-opener. Never thought of it that way. But thats whats going on id say. Thats when I can cash my check I bet. When next months rent is paid.

 

[Nitric]

I pulled all my Sterling today. I had a lot of it there.
This is the 2nd month of bad checks. Did get the 1st one cashed but it took a couple days.

I guess what happened is the dad passed away and Family took over. And now it looks like a mess. Its kinda expensive there I think and rent suppose to go up too. Time spent is crazy. Plus fees and expenses. Heck made more on ebay this week then all last month.

The whole floating money thing is an eye-opener. Never thought of it that way. But thats whats going on id say. Thats when I can cash my check I bet. When next months rent is paid.

That could go a couple ways after the passing of the Dad. I'm going to say that 8 times out of 10 the business starts going down hill, that I've seen. That may not be the case here. But a lot of times when the kids take over they just don't have the same drive or knowledge, self discipline as Dad and things fade pretty quickly. Not always, but I've been in too many bad situations and lost money. I try to look for the worst and hope for the best. Just in case. I may be looking at it all wrong and too negative too!!

 

[Beachkid23]

That could go a couple ways after the passing of the Dad. I'm going to say that 8 times out of 10 the business starts going down hill, that I've seen. That may not be the case here. But a lot of times when the kids take over they just don't have the same drive or knowledge, self discipline as Dad and things fade pretty quickly. Not always, but I've been in too many bad situations and lost money. I try to look for the worst and hope for the best. Just in case. I may be looking at it all wrong and too negative too!!

I think you’re pretty spot on. I can’t cash a check for $700. That was supposed to be available the 15th. Thank you very much for your time on this! I’ve been on here for a couple yyears and I’ve always gotten good advice. again I appreciate everything!

 

[JimDon]

It could be that the funds are tied up in the father‘s estate. That being said I’m not so confident on the second generation making it work. If they are not upfront with what’s going on then I think it’s time to look elsewhere

 

[GibH]

We had an auction house here that was really good. They bought a new (well different anyway) building and within months people started getting shafted on their checks. Same thing, they promised it was temporary. It wasn't.

 

[trdhrdr007]

A check that was a few days late due to death of the owner is understandable. A second one is a sign of worse things. If I had to guess the deceased had a cash cushion to smooth out cash flow issues. Without that cushion the business will continue to go down hill.

I was somewhat surprised when you opened a booth. I had one myself in the past. That's how I started out. Once I started selling on eBay I found I could get more money for my items. I kept the booth to sell things that came from bulk buys that weren't really suited for eBay sale due to size or low margin. Then I realized that booth rent was a higher % of sales than eBay fees & I was spending a crap ton of time working the booth. Once I figured that out I closed the booth.

 

[Beachkid23]

A check that was a few days late due to death of the owner is understandable. A second one is a sign of worse things. If I had to guess the deceased had a cash cushion to smooth out cash flow issues. Without that cushion the business will continue to go down hill.

I was somewhat surprised when you opened a booth. I had one myself in the past. That's how I started out. Once I started selling on eBay I found I could get more money for my items. I kept the booth to sell things that came from bulk buys that weren't really suited for eBay sale due to size or low margin. Then I realized that booth rent was a higher % of sales than eBay fees & I was spending a crap ton of time working the booth. Once I figured that out I closed the booth.

Yeah isn’t that the truth. I saw (what I thought was) a golden opportunity to make some extra money in whatever. But it’s turned into a project. I made more on eBay last week that I made in the last month at this other place. I guess I tried to grow bigger and get into different things but I’m seeing it’s too big of a project as well.

 

[releventchair]

Well , firstly ; congrats on trying something different.
That took ambition. You gained exposure too. IF customers can find you and your listings it might be worth it.

Now though I'm less easily riled up with age ,this bouncing check thing is not good.
Time was an employer did not have funds to cover my check.
Once is one thing. The second time the bank turned me away my employer and I had a talk.
Look I said ,this does not make either of us look good.
Why send me to the bank when there are no funds in the account?
From then on I took cash in such events .

My first thought reading your original post was ,what about interest on your delayed funds. But that is not really changing much ,or amounting to much.
My second thought was , why should you pay rent in good faith?

Likely multiple fumbles going on during transition ,but my biggest concern would be if the shop was going to continue at all ,and then will the party involved have their head on straight.

Regardless ,you tried it and can take the concept anywhere if you so desire.
Again ,kudos for trying. How else would you know if the experience was worth it? Or if it appealed to you enough financially to continue.
Sometimes the risks we sit , vs those we take leave us wondering years later if we tried enough...

An very small old bank catches my eye each time it sells. For a non internet storefront it has appeal. And as a bonus that big safe could babysit valuables after hours.
Traffic is too light though. And is in a low per capita income area. I do like the area ,but not it's potential.
Internet sales have affected many brick and mortar joints except for some limited very high shopper foot traffic areas.
If it can be shipped ...It can often be sold.

Good luck (you make your own though) in your endeavors.

 

[Philvis]

If this is a hobby and just some side money, just stick it out another month or so. If you are dependent on the money in any way, shape or form, seek shelter elsewhere.

 

[trdhrdr007]

Yeah isn’t that the truth. I saw (what I thought was) a golden opportunity to make some extra money in whatever. But it’s turned into a project. I made more on eBay last week that I made in the last month at this other place. I guess I tried to grow bigger and get into different things but I’m seeing it’s too big of a project as well.

I hear ya on the growth aspect. My ability to obtain inventory in my small area limits my eBay business. My only options are to travel elsewhere for inventory or somehow branch out. I've found that traveling for inventory is so hit or miss that it's not worth the time/expense. So far I haven't hit on any consistent way to reliably grow my business into other areas.

 

[Nitric]

I hear ya on the growth aspect. My ability to obtain inventory in my small area limits my eBay business. My only options are to travel elsewhere for inventory or somehow branch out. I've found that traveling for inventory is so hit or miss that it's not worth the time/expense. So far I haven't hit on any consistent way to reliably grow my business into other areas.

I understand what your saying. Over the years I've dabbled in just about every direction. The best thing that worked, was a small store front with advertising but to get to the level to pump enough advertising to bring the stuff in any volume is expensive.That was with coins and jewelry, along with other collectables mixed in, in an awesome location. That takes huge money to keep it going you have to move volume. Right now..I'm working out of a garage in an area where I know? No one! hahaha Starting from scratch again! Trying a little of everything.

Ebay, is the best option I've found so far! Move the real junk, or big stuff at the flea market. Even that is tough here. I'm in a no money area. We found that if you show up every week people start walking past, if you show up once every 4 weeks? They flock to see what you have since your not the regular.

I tried the antique mall thing for a short time years back in a good area. By the time you pay rent, pay percentage,tax,travel back and forth,time, theft, etc..We didn't really make enough to keep doing it. One piece stolen wipes out days or a month of profit

I hate Ebay, but it's been a solid, cheap, ok option. until...you can get to that next level.

Ohh! And don't buy into the whole pallet thing and how much money you can make!! You can, but it's hit and miss and averages out to about $0.... The only guy making money is the guy selling the pallets.

 

[Drmad7]

My very first thought after “they’ve been in business over 20 years” was, family members are taking over and it’s a mess. And it will take a long time to recover. I’d move.

 

[Beachkid23]

My very first thought after “they’ve been in business over 20 years” was, family members are taking over and it’s a mess. And it will take a long time to recover. I’d move.

Key words” its a mess” apply well!!

 

[catherine1]

Glad to see you got your valuable goods out of there. There are to many hands in the pot is why you are not getting paid. Best you get the rest of your goods out of there asap........unless you want to give them away.

 

[Beachkid23]

currently I’m watching all the vendors that I’ve been doing this for a long time. None of them are pulling out as of yet. My decision will probably be made as soon as tomorrow. I can always go back later on if they do well. I’m waiting to hear from my tax accountant. I might just sell everything in the store to another vendor and write everything off as a loss. I don’t have anywhere else put everything.

 

[Beachkid23]

Well, I feel like an idiot. 4/8/19 store is still open but currently 2+ months behind In payouts. I’ve listened to you all for yrs and your advice has been priceless. But failed to take your advice in this... I’m owed $2500 since Feb with no signs of being paid... put so much time in this place... nothing has gotten better... I’m not sure what else to say: hopefully someone else will read this and benefit unlike myself.

 

[tamrock]

Well if they ever file bankruptcy and your stuff is still there before they lock the doors, not only will you have a rubber check in your hand, your merchandise will be held up until that all gets sorted out. Sounds to me they struggle with cash flow and I'm not sure I'd be all that comfortable with their excuses.