Rank: Veteran Joined: 11/29/2007 Posts: 948
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maina20 wrote:propertyzote wrote:As a realtor, the goodwill fee that property owners charge are ridiculously high.
Goodwill by definition is an intangible, salable asset in this case (fee) arising from the reputation of a business and its relations with its customers, distinct from the value of its stock and other tangible assets. This is usually charged separate from the monthly rental fee.
A stall for instance along moi avenue, a few steps from Book Point Ltd has a goodwill fee of Ksh2M. If you do the math on profitability how will this business make profit or better yet to break even. The space we are talking about is approximately less than 100sqf. The business ought to make Ksh200,000 per day nett to recoup that cost in 10months. I dont know how this businesses do it as most of them are phones, computer accessories and Mpesa dealers.
Goodwill is refundable / transferable its thus not an expence.... use rent,salary,bills, consumables, etc to compute your expected daily sales.... also remember most businesses take at least 1yr to break even......  maheni maku!! ION the sales figures quoted here are not that far off. From Experience Don't write off a 'business' just because its dealing in stuff you thought is cheap, the volumes will shock you.
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