Saturday, February 21, 2015

Greed Does Not Pay

In the town I live shop rents are not cheap. Businesses trying to make a living are put under pressure by what is charged. Quite a few shops in town are empty at the moment, yet getting the owners to adjust their rates isn't what I see happening. An example from about three years ago - when shop occupancy was higher - emphasises how greed does not pay.

Someone I know who works in a store related how the owners of a shop (who are a consortium of professional business people) decided when the lease came up for review they would increase the rate by 30%! This in a country with interest rates at a few percent pa. The hike was too much and another store was located nearby and they moved there. Since that event three years ago, the shop has remained empty. They have lost three years of rent. If they got a new client now at the higher rate they want, it would take nearly a decade to recoup what they have lost.

I have to say that I am not the sort to enjoy someone's misfortune. However, when greed is the cause I make an exception. A massive rate hike that seemed to have no reason other than a cynical attempt to squeeze more juice out of a hapless shop owner deserves failure. I hope now that they realise the error of their ways and in future treat their existing customer with some respect. It's in their own interests anyway, because as in this case greed does not pay.

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