At this rate, trade bazaars may slowly lose their appeal to e-commerce sites and other trendy food establishments that may offer better price competitiveness and dining experiences, respectively.<\/p>\n\n\n\n
#1 Rising Rental And Operation Cost<\/strong><\/h3>\n\n\n\nOne of the oft-quoted reasons for the rising prices at trade fairs like the Geylang Serai Ramadan Bazaar is the rising rental costs. For instance, it\u2019s well documented that the tender for the 36-day bazaar was awarded to event organiser, S-Lite Event Support Pte Ltd for $2.26 million<\/a>.<\/p>\n\n\n\nHowever, what is not as well publicised is that on top of the venue costs, the event organiser also has to bear the costs of setting up the trade fair, which came up to nearly $2.5 million<\/a>. This includes complying with all legal and regulatory requirements, engaging waste management and pest control services, providing 24-hour electrical support to food stalls, installing sufficient CCTVs, and hiring security patrol officers, among others.<\/p>\n\n\n\nAs a business, the event organiser would then factor in all the costs incurred plus a profit margin for taking on the risk of organising the event when renting out its 700-stalls. In turn, the vendors would then mark up their goods accordingly in order to turn a profit after accounting for their rental and operational costs.<\/p>\n\n\n\n
While it is reasonable to expect rental costs to rise over the years due to inflation and competition from other vendors, trade fairs have a bigger disadvantage over permanent stalls in this regard. Unlike permanent stalls, where the infrastructure costs are calculated as part of the building costs, trade fairs have to deal with the ever-rising costs of land (venue costs) and manpower (setting up of infrastructure) each time \u2013 which ultimately is passed on to consumers.<\/p>\n\n\n\n
Read Also: $18,000 Rent At The \u201cWorld\u2019s Most Expensive Pasar Malam Stall\u201d. Why Rents Are Only Going To Stay High<\/a><\/em><\/strong><\/p>\n\n\n\n#2 Shrinking Venues<\/strong><\/h3>\n\n\n\nPasar malams and trade bazaars operate at large open spaces, in fact, the bigger the better.<\/p>\n\n\n\n
One reason is that a large venue creates more hype and attraction for visitors as it can cater to a wider audience group, giving more reason to patronise the trade fair.<\/p>\n\n\n\n
Second reason is that there are greater economies of scale with a bigger venue, allowing for better margins for event organisers, who would then be willing to bid for such tenders.<\/p>\n\n\n\n
However, what is not as well publicised is that on top of the venue costs, the event organiser also has to bear the costs of setting up the trade fair, which came up to nearly $2.5 million<\/a>. This includes complying with all legal and regulatory requirements, engaging waste management and pest control services, providing 24-hour electrical support to food stalls, installing sufficient CCTVs, and hiring security patrol officers, among others.<\/p>\n\n\n\n As a business, the event organiser would then factor in all the costs incurred plus a profit margin for taking on the risk of organising the event when renting out its 700-stalls. In turn, the vendors would then mark up their goods accordingly in order to turn a profit after accounting for their rental and operational costs.<\/p>\n\n\n\n While it is reasonable to expect rental costs to rise over the years due to inflation and competition from other vendors, trade fairs have a bigger disadvantage over permanent stalls in this regard. Unlike permanent stalls, where the infrastructure costs are calculated as part of the building costs, trade fairs have to deal with the ever-rising costs of land (venue costs) and manpower (setting up of infrastructure) each time \u2013 which ultimately is passed on to consumers.<\/p>\n\n\n\n Read Also: $18,000 Rent At The \u201cWorld\u2019s Most Expensive Pasar Malam Stall\u201d. Why Rents Are Only Going To Stay High<\/a><\/em><\/strong><\/p>\n\n\n\n Pasar malams and trade bazaars operate at large open spaces, in fact, the bigger the better.<\/p>\n\n\n\n One reason is that a large venue creates more hype and attraction for visitors as it can cater to a wider audience group, giving more reason to patronise the trade fair.<\/p>\n\n\n\n Second reason is that there are greater economies of scale with a bigger venue, allowing for better margins for event organisers, who would then be willing to bid for such tenders.<\/p>\n\n\n\n#2 Shrinking Venues<\/strong><\/h3>\n\n\n\n
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