How Much Does a Pop Up Shop Cost?
What comes to mind when you think of a pop up shop? First and foremost, think of the benefits of creating unique consumer experiences at a low-risk commitment! While opening a storefront for any brand can become daunting and costly, pop up shops have become a solution to this problem for companies large and small alike. Whether you are looking to engage online clientele IRL, test a particular market, or increase sales, pop up shops have proven to be an effective mechanism for boosting brand visibility and catalyzing growth. But what exactly does it take to open a pop up shop? More importantly, how much does a pop up shop cost and how do you budget for it? Regardless of specific price points, here’s an idea of what to expect.
Four Key Pop Up Budget Categories
1. Fixed Costs
4. Store Design
1. Fixed Costs
Fixed costs can include everything from rental fees and liability insurance to utilities and WiFi. These are the essentials to keep your shop open and running like any other storefront. While rent will likely fluctuate depending on the neighborhood, size of space, duration, and time of year, the rest of these costs are fairly standard, making them the easiest to budget for. To make your life easier, look for all-inclusive turnkey spaces. These are ready-to-use white box storefronts with wi-fi, electricity, insurance, permitting and more covered beforehand, which will help avoid the time, money and tedium of securing these yourself.
Marketing is extremely important when launching a pop up shop. Without proper promotion and buzz, you will be relying solely on foot traffic to bring your temporary store to life. And think about this: how many people want to walk into an empty store? Effective marketing also extends to engaging social media content and “activating” your space on a regular basis through artist, brand and influencer collaborations. Also, consider advertising through physical fliers, paper invites and business cards. These can be the least expensive and most effective ways to spread the word about your pop up shop to passersby. Make sure to always promote your events on free local event apps and websites.
3. Operational Costs
Operational costs loom large in the day-to-day function of a pop up shop. If you choose to hire staff, you’ll have to consider payroll. Cleaning and maintenance, garbage removal and a reliable point of sale (POS) system are also important to take into account. Keep in mind that by monitoring sales and foot traffic throughout the open hours of your pop up shop, you can adjust your staff costs, which can substantially reduce wasted resources during slower times. If you’re not hosting regular events, cleaning fees should remain minimal.
4. Store Design
Store design is also essential to budget for. An eye-catching aesthetic is the key to an impactful and memorable consumer experience. Once all other aspects of your pop up shop are figured out, take your time decorating your pop up shop the best you can. You’ll want to focus on furniture, decor, lighting/fixtures, window displays, props and signage. You can save on these by working with local, affordable vendors.
If any of this seems intimidating, consider working with a pop up production agency like Parasol Projects, who will assist you every step of the way. Who can argue with saving time, money and effort?
Additional Pop Up Information
Additional Pop Up Resources
The following external resources are also helpful tools for budgeting your pop up shop: