I finally found a kitchen to rent that is close to my home. I have to submit a proposal to the board stating who I am, what I want to do, and also how much I want to pay. The lady I spoke with said that the board would rather rent to me on set days of every week. So I will be paying for the space whether I use it or not. I will need to set hours that I will use it. I will be buying my own refrigerator to keep on location to use and they will give me some storage space for my cake pans and other supplies. The lady I spoke with said that I could propose starting at a lower rate for the first six months and then increasing my rent.
My questions are how much should I tell them I am willing to pay? How do I start getting business before I open so that I am not paying for a kitchen I am not using? Any advice would be appreciated!
it might vary by location, I'm in NJ and I found a kitchen that rents for $20/hr. Not sure if that's helpful or not.
I know that 20 dollar an hour is about average however I am wondering if I should lowball them a bit and see if I can get a better price.
Maybe since you are paying them weather you use the kitchen or not, you could use that are a bargaining chip to get a lower rent. You are garunteeing them the income, and won't always be using up the resources, that seems reasonable to me.
Based on your pricing you should be able to calculate the max rent you can pay and still make a decent profit without raising prices, you can probably start the negotiation at 60-70% of that figure.
BTW renting by the day is usually considerably cheaper than renting by the hour.
Does anyone have any tips for drumming up some business before actually starting or once I do start?