How Much Does a Pop Up Shop Cost?
As a business, when you think of a Pop-Up shop, what comes to mind? If it’s not the benefits of creating unique consumer experiences at a low-risk commitment, then think twice!
While opening a storefront for any brand can become daunting and costly, Pop-Up shops have become the 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-Ups 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—or more importantly—how much does a pop up cost? Well, you’ve come to the right place to figure that out.
To help, we have narrowed it down to four key categories to pay attention to when planning and budgeting for your Pop-Up.
1. Fixed Costs
4. Store Design
But let’s take it one step further and break this all down with a little more detail. Here goes:
1. Fixed Costs
Fixed costs can be anything from space rental fees, liability insurance, utilities, WiFi, security deposits, and so on. These are the essentials to keep your shop open and running like any other storefront. While something like rent will likely fluctuate depending on the neighborhood, size of space, duration, and time of year—the rest of these costs are relatively standard across different locations, making them some of the easiest to budget for. To make your life easier, look for all-inclusive turnkey spaces.
Marketing is extremely important when launching a Pop-Up because, without proper promotion and buzz, you will be relying solely on foot traffic to bring your temporary store to life. And think: how many people want to walk into an empty store? Marketing starts with your normal digital channels and social media and extends to any interesting programming and artist, brand, and influencer collaborations you can think of that will “activate” the space on a regular basis. Another thing to think about is brand collateral—business cards, invites/flyers/posters, and packaging. But with the right amount of prep time and planning, these can become one of the least expensive, as well as one of the best ways to spread the word about your Pop-Up to passersby. Make sure to also promote your events on local event apps and website, many of which are free!
Operational costs also play a large role when it comes to the day-to-day function of a Pop-Up space. Most importantly, the cost of day-to-day staff (if you’re hiring any), cleaning and maintenance, garbage removal, and a reliable POS system are important factors to take into account when determining a realistic budget for your project. Keep in mind, however, that by monitoring sales and foot traffic throughout the open hours of your Pop-Up, you can adjust something like your staff costs, which can substantially reduce wasted resources during slower times. If you’re not hosting regular events as well, then cleaning fees should remain minimal.
4. Store Design
Lastly, and possibly the most difficult to budget for is your actual store design. An eye-catching aesthetic is the key to an impactful and memorable consumer experience. Once all other aspects of your Pop-Up are figured out, outfitting the Pop-Up itself can be as enjoyable as it is cumbersome. Some of the key points to keep in mind when planning a store design are furniture, decor, lighting/fixtures, window displays, props, and signage. While this phase can easily become the most costly part of organizing a Pop-Up shop if not planned effectively, it can also be a potential area to save in by working with local, affordable vendors. Another option is to get hands-on and take on a few DIY decor elements, which will result in dollars saved and a unique, fresh look!
Any brand with a strong understanding of these four categories and their respective moving parts will have a much easier time executing their Pop-Up and staying on budget.
If anything listed above still seems intimidating when considering whether or not to host a Pop-Up, you may also choose to work with a Pop-Up production agency such as Parasol Projects, who will assist you every step of the creative, logistical and financial planning of your project. Ultimately saving time, money, and effort, who can argue with that?
Now that you’re a Pop-Up budgeting pro, check out our other guides from Parasol Projects to learn more about successfully staging your pop up:
The following external resources are also helpful tools for budgeting your pop up shop: