Mall Operating Tips

The following antique mall, craft mall and design center operations tips
are from articles we've previously written and published. This,
however, is the first that they have all been published together.
Software Gallery hopes that you'll find the information useful and timely.
Here are the titles of the operations tips that are published below:

Introduction	Electrical Energy
Air Conditioning	Mall Safety
Mall Security	Mall Cost Control
Making Your Mall Customer Friendly	Making Your Mall Lawsuit Resistant

Introduction

Lets set the stage for future tips by talking antique malls and
the operating costs associated with them. Yes, I know, your
dealers, and the public too, think you are making a mint from
renting space to them. Even if you are, your operating costs are
still important. By controlling them you can do other, much more
productive things with the money you save.

Mall operating costs

In many ways, although unique in some respects, antique malls are
like other, more classic, retail sales operations. Although some
antique malls have a significant component of wholesale or dealer
oriented business, the sales model and physical facility more
closely represents a retail sales business. As such, the costs associated with the operation of an antique mall may,depending upon circumstances be characterized as:

•Real estate related: rent, mortgage, taxes and maintenance, etc.

•Labor: clerks, accounting, and janitorial, etc.

•Operating: electricity, gas, water, sewage, snow removal,air
conditioning, heating, window washing, supplies,security,
insurance, licenses, etc.

•Advertising: print media, radio, TV, special promotions, fliers,
brochures, etc.

•Management: manager, assistant manager

Most, if not all of these costs are necessary. However, close
control of them directly affects your profits. Some offer more
opportunity for control than others, depending upon your location
and the way you operate your mall. Remember,however, that any
savings, no matter how small adds up to greater profit. I'll talk
next month about practical ways to reduce your energy costs.

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Electrical Energy

Have you looked at your electric bill recently ? Quite a shock
isn't it ? Aside from air conditioning in antique malls, most
electricity is consumed as lighting. As we all know, lighting is
essential for displaying goods and for public safety. A light bulb
is a resistive load so a 100 watt light bulb generates light and
approximately 314 Btu/hour of heat. Count the light bulbs and
fluorescent fixtures in your antique mall and record their
wattages. Multiply each watt by 3.14 Btu/hour to determine the
amount of heat they release.

The amount of heat they generate, and expensive heat it is, can
result in the need to use air conditioning in the cooler seasons
of the year and in the winter. In the summer, the air conditioning
load in your mall is substantially greater because of the heat
load added by lighting. You, as the mall owner, are paying double.
First, you pay for the electricity consumed for lighting. Then you
pay for the electricity to run the air conditioning required to
remove the heat you just paid for.

A single 100 watt light bulb, on for eight hours per day, five
days per week for 52 weeks per year at 8 cents per kilowatt hour
for electricity, results in a cost of $16.64 per year. If there
are five 100 watt light bulbs in one dealer's booth and there are
100 booths in your mall, the annual cost is $8320 per year. That
isn't small change!

Sure, its tempting to turn off all the lights and work in the
dark. That's silly, of course, so what do we do to be practical
about saving money? Where possible use lower wattage bulbs in
dealer displays. Such bulbs are frequently as, or even more,
effective than higher wattage bulbs. When you relamp your
fluorescent fixtures use lower wattage, high efficiency lamps.

Where possible switch from incandescent bulbs to compact, high
efficiency fluorescent bulbs. They are more expensive initially
but offer great energy savings and last far longer than
incandescent bulbs. Some power companies will help with relamping
costs because it stretches their generating capacity. There may
also be tax incentives available for relamping.

Reevaluate your lighting needs. There may be areas in which you
have too much light for the tasks being illuminated. Use as much
natural lighting as possible. It's free and in the winter it can
help heat your building. Yes, its true that in the winter lighting
can help to heat your building. Compared to gas or oil, however,
it is very expensive heat. In the summer all that additional heat
from lighting loads gets really expensive. Systematically reducing
lighting electrical loads makes terrific sense. Its great for you
financially and its great for the environment. So go to it !!

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Air Conditioning

Air conditioning is the removal of heat, water vapor and
contaminants from air which is to be circulated through an occupied
space. A relatively recent development with respect to cooling
and conditioning spaces occupied by people, air conditioning
came into common use only after WWII when non toxic
refrigerants became available. Oddly, these are the very same
refrigerants which are now banned in the US because they are
thought to damage atmospheric ozone.

Air conditioning is highly beneficial, in a commercial sense, for
many reasons. It enables people to shop and work in spaces
which would otherwise be too hot and humid during large
parts of the year. Further, air conditioning reduces damage to
structures and their contents from excessive humidity and
other contaminants. An air conditioning unit consists of a
compressor, evaporator, filter and a method of moving the air.
Most are driven by electricity and are typically either centralized
or window units.

Although very beneficial in meeting the comfort demands of
customers and workers alike, air conditioning does represent
a significant expense. The expense is not only in first cost, i.e.,
the cost of acquisition and installation, it is also in operating costs.
Let me warn you as a highly experienced professional
engineer. It does not pay to buy and install used air conditioning
equipment. It is difficult to obtain parts for old units, they are grossly
inefficient and they typically use banned refrigerants so they
should be avoided.

In the summer, the air conditioning load in your mall is
substantially greater because of the heat load added by lighting.
The amount of heat lighting generates, and expensive heat it is,
can result in the need to use air conditioning in the cooler
seasons of the year and in the winter. You, as the mall owner,
are paying double. First, you pay for the electricity consumed
for lighting. Then you pay for the electricity to run the air
conditioning required to remove the heat you just paid for.
That really doesn't make sense does it ?

There are numerous low cost things that you can do to reduce
your air conditioning costs and yet maintain a comfortable sales
environment.
o Follow the operating instructions and guidelines provided by the
installer, manufacturer or power company.
o Have the air conditioning unit professionally maintained according
to the manufacturer's instructions. It will pay big dividends
in operating costs and reliability.
o Check the air filters regularly and replace them according to
schedule. Filters are cheap when compared to the costs which
are incurred when they are dirty.
o Make sure that the areas around the condenser units are kept
clear so there's no interference with cooling air flows.
o Buy a really good (talk to your air conditioning contractor)
programmable controller(s) for your system and learn to use it
effectively including night time setbacks and early morning
startup.
o Set the controller(s) for maximum efficiency and put a lockable
cover on it to keep prying fingers away. Demand charges cost
really big money and are very easy to create.
o Keep all heat sources away from the controller so it senses
true room air temperature and not an artificial load brought
about by a nearby electric light bulb.
o Limit the wattage dealers may use in lamps and other fixtures
in their booths. It not only saves the energy required to light the
bulbs but also the air conditioning energy required to remove the
energy you just paid for in the first place. This is also a significant
fire safety issue associated with higher wattage bulbs.
o Use energy efficient sales space lighting and limit the amount
of lighting to that which is actually needed.
o Be aware of power consuming appliances such as coffee
makers. They not only consume large amounts of expensive
electricity but also add substantially to the heat and water vapor
load within the air conditioned space.
o Use weather stripping and air locks to reduce the infiltration
of hot, moisture laden air into the conditioned space.
o Install insulation to minimize heat transfer from outside.
o Observe where sunlight enters the conditioned space through
unprotected windows during the cooling season. The amount
of heat added by solar gain is considerable; heat which has to be
extracted by the air conditioning system.

These areas are well worth examining, and correcting if found
deficient, because they can lead to significant cost savings. These
are cost savings which go directly to your bottom line.

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Heating Your Mall

It isn't at all too soon to be thinking about the upcoming heating
season and how to reduce your heating costs. In many parts of
the country, heating costs are a major expense and directly affect
the profitability of your mall.

Heat, for many malls is, in a commercial sense, an absolute
necessity. It enables people to shop and work in spaces which
would otherwise be too cold and uncomfortable during
significant parts of the year.

Although very beneficial in meeting the comfort demands of
customers and workers alike, heating does represent
a significant expense. The expense is not only in first cost, i.e,
the cost of aquisition and installation of equipment, it is also in
operating costs. It does not pay to buy and install used heating
equipment. It is difficult to obtain parts for old units and they are
very inefficient.

Fuels used for providing heat can include fuel oil, gas (both natural
gas and propane), and electric as well as hybrid systems such as
geothermal ground source or heat pumps. The heat can be
delivered to the occupied space by warm air, hot water radiation,
steam radiators, radient sources including in floor and gas fired
systems. The choice of fuels and delivery system are governed
by economics, local availability and structural limitations.

In the heating season, the heat added by lighting helps somewhat
to reduce the amount of heat required. However, the heat added
by lighting is very expensive. Therefore, it is usually far cheaper
to keep tight control of your lighting budget and provide heat with
other energy sources.

There are numerous low cost things that you can do to reduce
your heating costs and yet maintain a comfortable sales
environment.

• Follow the operating instructions and guidlines provided by the
installer and manufacturer.
• Have the heating unit professionally maintained according
to the manufacturer's instructions. It will pay big dividends
in operating costs and reliability.
• Check all filters regularly and replace them according to
schedule. Filters are cheap when compared to the costs which
are incurred when they are dirty.
• Make sure that the areas around the return air vents or radiators
are kept clear so there's no interference with heating air flows.
• Buy a really good (talk to your heating contractor)
programmable controller(s) for your system and learn to use it
effectively including night time setbacks and early morning
startup.
• Set the controller(s) for maximum efficiency and put a lockable
cover on it to keep prying fingers away.
• Keep all heat sources away from the controller so it senses
true room air temperature and not an artificial load brought
about by a nearby electric light bulb.
• Limit the wattage dealers may use in lamps and other fixtures
in their booths. This saves the energy required to light the
bulbs and moderates the fire safety issue associated with higher
wattage bulbs.
• Use energy efficient sales space lighting and limit the amount
of lighting to that which is actually needed.
• If possible, provide for humidification of the air within the
heated space. Its beneficial to people and helps prevent the
shrinkage of wood and other materials.
• Use weather stripping and caulking to reduce the infiltration
of cold air into the heated space.
• Install insulation to minimize heat transfer from inside to outside.
• Observe where sunlight enters the heated space through windows
during the heating season. The amount of heat added by solar
gain is considerable and it is free.
• Consider modernizing, upgrading or replacing your heating
facility with high efficiency equipment. In colder climates the
payback can be remarkably fast.
• Do not leave a direct path from the heated space to the outside.
Air locks, indirect entryways and indirect access to loading docks
will help prevent the loss of heated air to the outside.

These areas are well worth examining and correcting if found
deficient because they can lead to significant cost savings. These
are cost savings which go directly to your bottom line.

David Cunningham, P.E. is an HVAC engineer with commercial
and industrial design, construction and operation experience.

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Mall Safety

One of the often neglected but extremely important aspects of
antique center operation is safety. Seemingly boring and
apparently inconsequential, the issue of safety can have
significant ramifications with respect to the physical and
financial well being of customers, dealers and management alike.
Aside from the unpleasantness associated with personal injury
or death and/or damage or destruction of property, there is the
ever present threat of litigation, criminal prosecution or
regulatory citation. Additionally, being safe is simply the right
thing to do.

It is far cheaper financially and much less stressful to take care
of safety issues before something happens than to attempt to
recover from an incident or disaster. The phases of dealing with
safety issues are assessment, recognition, mitigation plan
development, actual mitigation, and follow-up.

What are the Hazards ?

Antique centers or malls are unique in their exposure to safety
issues. Buildings housing antique malls are frequently old and
were built prior to the enactment of building codes. Dealers
bring a virtually limitless variety of "old stuff" into antique malls,
some of which can present unusual, unrecognized hazards to all
involved. Virtually all of the materials or products which
present such hazards were manufactured at a time when labeling
was nonexistent and there were no controls upon what could be
distributed in commerce. Some, but by no means all, of the
hazards which can be encountered are presented. Many are
capable of causing serious injury or death.

The complexity of your safety project has its roots in the
specific details of the nature of the operation, size, age and
dealer make up your mall. You should first explain to your
dealers what you are going to do and why. Enlist their
cooperation and give them an opportunity to assist you.
Develop and provide a safety/hazards recognition check off
sheet and tell your dealers what to look for. Coincident with
the dealers reviewing the safety status of their own selling
spaces, you and your management team should review the
safety/hazards status of the spaces for which you are solely
responsible.

After giving your dealers a reasonable time to respond to your
request for their cooperation, you and your management team,
should address your dealers' remaining problems with them.

IMPORTANT NOTE:
Should you or your dealers discover any materials known to be
immediately and highly dangerous, DO NOT attempt to deal
with them yourself or allow a dealer to attempt to deal with
them !! Such situations require an extraordinarily high level of
training, skill, experience and equipment. They MUST be dealt
with by proper civilian and/or military authorities. Hazards
such as military ordinance, i.e. unexpended munitions such as
mortar rounds, grenades, gas canisters and similar materials can
readily be found in antique malls and fall into this category.

Examples of other objects or materials which fall into this
category include picric acid and gun cotton. Picric acid is
frequently found in very pretty blue glass jars with ornate labels.
These jars are leftovers from early chemistry laboratories. The
picric acid they contain is notorious unstable, can explode with
great violence and with deadly results simply as a result of being
bumped or disturbed. Call your local police department, sheriff
or fire department for assistance. above all DO NOT try to do
it yourself.

Hazards such as ordinary chemicals, insecticides, fungicides,
biohazards, and highly combustible materials such as solvents
and old movie film (which can spontaneously combust) should
be dealt with promptly but should not be considered an
emergency. Any material which is regulated by national, state
or local statute MUST be handled and disposed of in accordance
with appropriate regulations. Call your local Fire Marshall or
Solid Waste Agency for assistance.

Although somewhat less immediate in priority, many of the
remaining hazards do require prompt and decisive attention.
The difference is that these are things you can do yourself or
have done by a local contractor. Physical hazards such as loose
rugs and carpets, low overheads, poor quality ladders, snow
removal issues, loading docks, elevators, poorly marked exits,
poorly lighted stair ways and aisles and edged weapons are
rather obvious upon astute observation. All can be corrected
or marked in accordance with applicable regulations.

Some electrical hazards can be observed by a competent
observer. Others such as circuit overloads, poor interior wiring
and overloaded distribution boxes require the assistance of a
highly competent electrician. Those easily observed and
correctable electrical hazards include, dealer use of zip cords
and overloaded extension cords, high wattage lamps placed
near combustible materials or used in non compliant fixtures,
or the use of halogen lamps in any dealer supplied fixtures
within several feet of combustible materials.

Make sure that you have enough portable fire extinguishers of
the correct type for your mall and that your fuel fired heating
system is in tip top shape. Similarly, check all of your smoke
detectors and CO monitors, that the batteries are fresh and that
they are in optimal operating condition.

Firearms and firearm safety are a special case. In addition to
presenting a very difficult series of regulatory issues, firearms
can present special dangers and liabilities. If you decide to
permit firearms regulated under current national, state or local
law to be sold in your mall, you have a special obligation to
protect yourself, your dealers and the public. Consult YOUR
ATTORNEY for guidance. By permitting firearms to be sold
you may be incurring liabilities which may prove to be
unacceptable to you. All modern firearms and antique firearms
using cartridges must be checked for the presence of
ammunition and verified as being unloaded. All antique firearms,
as defined by applicable regulation, must be checked to verify
the absence of powder charges and balls in the barrel and the
absence of a fireable cap or powder in the pan. Charges and
balls in barrels of muzzle loading weapons are a
frequently found hazard and can present a very serious threat to
shooters and by standers.

Once you have established you safety program and carried it
out, it is singularly important to follow up and make sure that
it is enforced. Make sure that your dealer contact containg
your rules and that they are enforced. Again, TALK TO
YOUR ATTORNEY. It is far cheaper now than later. DO
NOT allow sloppy dealer housekeeping !! By doing so YOU
are allowing them to put you into a very vulnerable and almost
indefensible legal position.

Let the experts help you with your safety program. Talk to
your insurer ! They may be able to assist you with your loss
prevention issues. Also consider talking to your local fire
department. They also may be able to assist you. There is
usually plenty of good competent help available; the challenge
is finding and using it.

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Mall Security

There are many areas of antique mall security. Among them
are outright theft of merchandise (shoplifting), fire concerns,
burglary, armed robbery, and bad checks. Security is best
accomplished by removing the opportunity for an aberrant
event or making an undesirable outcome more difficult.

Dishonest individuals are much more likely to pass up your
mall if it is apparent that it is a difficult target or there is
likelihood of being identified and apprehended. Of course, you
don't want to adversely affect your relationship with the
majority of honest customers who come into your mall.
Therefore, your security arrangements should be apparent but
transparent; obvious but not heavy handed.

It would certainly be nice if everyone was honest. But, it has
never been that way and probably never will. Someone will
always want to acquire what isn't theirs, either because it has
value or it is something they want. So, anyone who has
something that someone else wants is at risk of losing it to theft.

Theft

One of the major issues associated with antique mall security
is theft.

Because the stuff that your dealers bring into your antique mall
has value to someone else, you have an obligation to at least
help protect it. Frequently enough, dealers don't help
themselves but you still have to try. Admittedly too, the
merchandise some "dealers" bring in to sell, as evidenced by
the fact that it does not sell and no one will steal it, has neither
value nor desirability. That, however, is a topic for another time.

Theft or "shrinkage" is a potentially serious antique mall
problem. In the long run antique mall theft hurts everyone,
your dealers and you too. Although complete elimination of
theft is not likely to be achieved, you do have an obligation to
try to minimize it.

There is no secret or "magic bullet" to controlling antique mall
theft. Success in controlling theft is the result of many well
executed strategies, each of which contributes to the overall
effect. The reason many different strategies are required is
because there are many different ways in which theft can be
accomplished.

Some of the more obvious ways in which theft occurs are :
· shoplifting
· dealer theft from other dealers
· organized diversions
· tag switching
· existence of alternate non-secure exits
· existence of "blind" areas

Shoplifting is accomplished, of course, by concealing
merchandise and then leaving without paying for it. There are
specialized tagging and detection systems which are very
effective in detecting the concealment of merchandise. The
limitations on this system are the capital investment required
and the limited number of items which can economically
protected. Obviously, if you regularly sell high ticket items,
and you pass along at least part of the cost of protecting them,
tagging systems are an excellent way to go.

On the other hand, if most of what you sell is less expensive,
there are other methods which help to minimize shoplifting. No
large purses or bags should be allowed in the sales area. They
are best restricted to a package shelf or better yet the owner's
vehicle. Floor walkers, with case keys, should actually be
walking the floor within an assigned area rather than coffee
clatching, sitting on their duffs, reading or peddling their own
merchandise. Video cameras, strategically placed, with stop
motion recorders are a great deterrent. It should be obvious
that they are there and the tapes should be periodically
reviewed. Thieves are not deterred by empty camera bodies
which are laughable. Cases in which high value merchandise
is displayed should be located in an area which is under constant
observation and should have special high security locking
systems. Always prosecute those caught shoplifting. When the
word gets around that you do fewre attempts will be made.

Interdealer theft, as repulsive as it is, is a reality. Ideally, all
merchandise taken from your mall by exhibiting dealers should
pass through an inspection area prior to being allowed to leave
the premises. All "empty" boxes should likewise be checked for
merchandise.

Beware of diversion tactics. Diversions, involving two or more
individuals, are designed to create confusion in a particular area
while theft occurs in another. When an usual incident occurs,
only those personnel directly needed should respond. All cases,
cash drawers and sensitive areas should be secured and all
personnel not directly involved in the incident placed on
heightened alert.

Tag switching is a perennial antique mall issue. Your tagging
specifications should take this issue into consideration by
requiring at least a minimum description of the merchandise,
the price and a stock code. Security tags which break up when
removed are also effective. In any case, the goal is to make tag
switching either difficult or ineffective. To make your efforts
effective you will need to educate your dealers to overcome
their tendency toward laziness and complacency.

Alternate non-secure exits from your mall are an open
invitation to trouble and can seriously compromise your
security. Loading doors should be closed at all times when not
in use and locked or barred. Obviously, you can't chain or
otherwise block access to emergency exits which are required
to be equipped with panic hardware in accordance with life
safety codes. These doors can, however, be closed. Ideally,
any time loading doors are opened they should be supervised
by a responsible party.

"Blind" areas, that is, those areas which are not open to visual
observation, are an open invitation to theft. If it is not possible
to open the area to visual observation, there should at least be
a video camera installed to monitor activity within it.

Fire

Fire is a major enemy of antique malls. Many malls are in old
buildings and they are stocked with merchandise that tends to
be flammable. We talked extensively about fire safety in a
previous article. It is important to have an adequate number
of fire extinguishers on hand and have your personnel trained
to use them. Be sure, also, to plan for and discuss with your
personnel, what to do in the event of a fire. Frequently, your
local fire department or insurance company will help you
achieve this.

Even where not required by local or state codes, fire detection
and suppression instruments can be a very good investment.
This can be as simple as installing local alarm smoke detectors
or as complex as a zoned alarm system with a fire suppression
system and central station reporting and fire department
dispatch. Investigate all alarms and take whatever action is
needed to resolve them.

Make sure that you take your backup computer disks off site
at least once each week. Without the information they contain
you will not be able to restart your business and it will quickly
fail. We have had the unfortunate experience of seeing fire
destroy several of our client's antique malls as well as several
others. In at least two cases, the fires were set by burglars
trying to cover their escapes and destroy evidence.

Burglary

Every antique mall is a potential target for burglars. This is
especially true for malls which house dealers who specialize in
expensive easily fenced "smalls" such as jewelry. Take all cash
off site every evening or place it and your daily backup disks in
an appropriate fire proof safe. Install and use professional
grade motion detectors and low light level capable security
cameras equipped with stop motion video tape recorders. All
windows and doors should be equipped with sensors which will
detect entry or breakage. Any alarms resulting from this
department or 24X7 monitoring organization. Please note that
these pieces of equipment described, as well as others we have
discussed, need to be installed and maintained by professionals.
This not a job for amateurs nor should the equipment selected
be less than professional quality.

Armed Robbery

Willie Sutton, the infamous bank robber, was once asked why
he robbed banks. His answer was a classic "Because that's
where the money is !" Armed robberies (holdups) of antique
malls seem to be remarkably rare. It is our opinion that this is
only because criminals don't have any concept of the amount
of cash which passes through a typical antique mall and how
very easy it would be to take it. From our observations, mall
robberies certainly don't occur because malls present hardened
targets.

Once again, you best defense against robbery is to take away
the incentive and opportunity. If significant amounts of cash
accrue in the cash drawer, remove it by substituting a fresh
drawer or removing a significant portion of the cash. Always
physically conceal the cash so bystanders cannot gain a concept
of the amount of cash which might be available at any given
time. Cash should never be handled or counted in public view
and should be stored securely. When transporting cash for
deposit always vary your route and time of departure. If
appropriate, arrange for an armed escort.

If you have the misfortune to be the victim of a robbery, above
all remain calm. Instruct your staff not to resist. Follow
instructions while unobtrusively observing important details.
Do not play hero ! Money, in reality, is nothing but used dirty
paper and can be replaced; lives cannot.

Check all areas to which the public has access at closing and
move customers from the extremes of the mall toward the exit.
Do not allow people to linger but politely and firmly move them
toward the checkout. As a part of your overall security system,
if the risk is sufficiently great, install hold up alarms. Never try
to apprehend or detain an armed criminal yourself; the risk to
you and bystanders is simply too great. Remember that if a
"druggie" will shoot and kill a convenience store clerk for
$25.00, think what he'll do to get the kind of cash that passes
through your hands on a busy weekend. Don't give them the
opportunity !

Bad Checks

Checks, to be accurate, are little more than promises to pay.
Regrettably, some people's promises aren't worth much with
the result that many bad checks get issued every day. To say
that bad checks are troublesome is an understatement. The
prospect of significant financial loss is one thing but the
aggravation and annoyance are another. It is certainly worth
taking all available steps to (1) prevent accepting bad checks
and (2) to collect the amount due if you do get one. It's
beyond the scope of this article to discuss the particulars of
check recovery. It is sufficient to say that it can be exceedingly
difficult and tedious. Consult your local Chamber of
Commerce, attorney or check recovery service provider to
determine what is legally permissible in your area. Don't be
surprised to discover that you are at a significant disadvantage.

You can, however, take steps up front to minimize your
exposure to bad checks. Always ask for photo identification --
two pieces if available -- and look at them very carefully.
Make sure that the addresses on the offered identifications
match each other and that on the check. Very carefully
examine the check. Make sure that it has not been altered, is
not postdated (dead men can't write checks) and is printed
upon alteration resistant check safety paper.

Do not accept third party checks and do not accept any payroll
checks unless the payee is known to you. Maintain a working
relationship with your fellow area merchants. Informally trade
information about bad checks and suspicious individuals who
are in the area. Finally, if you are really concerned about bad
checks (and who isn't) sign up for one of the nationally
available check verification services such as Ok Check.

Security is a very important part of your business. You can
positively impact security through modest steps you can
implement yourself. And, by taking these steps you can make
yourself a significantly less attractive target for criminals. So,
go to it !

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Mall Cost Control

Those never ending bills can be very discouraging, especially in
today's extremely competitive environment. Dealers have many
options as to how and where they can offer their merchandise for
sale. Therefore, it's really difficult to raise their rent or increase
their commission fees. But the bills keep coming.

It has, therefore, become increasingly critical to minimize costs.

Electricity Costs

Have you looked at your electric bill recently ? Quite a shock
isn't it ? Aside from air conditioning in antique malls, most
electricity is consumed as lighting. As we all know, lighting is
essential for displaying goods and for public safety. A light bulb
is a resistive load so a 100 watt light bulb generates light and
approximately 314 Btu/hour of heat. Count the light bulbs and
fluorescent fixtures in your antique mall and record their total
wattage. Multiply each watt by 3.14 Btu/hour to determine the
amount of heat they release.

The amount of heat they generate, and expensive heat it is,
can result in the need to use air conditioning in the cooler
seasons of the year and in the winter. In the summer, the air
conditioning load in your mall is substantially greater because
of the heat load added by lighting. You, as the mall owner,
are paying double. First, you pay for the electricity consumed
for lighting. Then you pay for the electricity to run the
air conditioning required to remove the heat you just paid for.
A single 100 watt light bulb, on for eight hours per day, five
days per week for 52 weeks per year at 8 cents per kilowatt
hour for electricity, results in a cost of $16.64 per year. If
there are five 100 watt light bulbs in one dealer's booth and
there are 100 booths in your mall, the annual cost is $8320 per
year, not including electricity costs. That isn't small change!

Sure, its tempting to turn off all the lights and work in the dark.
That's silly, of course, so what do we do to be practical about
saving money ?
• Where possible use lower wattage bulbs in
dealer displays. Such bulbs are frequently as, or even more,
effective than higher wattage bulbs.
• When you relamp your fluorescent fixtures use lower wattage,
high efficiency lamps.
• Where possible switch from incandescent bulbs to compact,
high efficiency fluorescent bulbs. They are more expensive
initially but offer great energy savings and last far longer than
incandescent bulbs.

Some power companies will help with relamping costs because it
stretches their generating capacity. There may also be tax
incentives available for relamping.

Reevaluate your lighting needs. There may be areas in which
you have too much light for the tasks being illuminated. Use
as much natural lighting as possible. It's free and in the winter
it can help heat your building. Yes, its true that in the winter
lighting can help to heat your building. However, compared to gas or
oil, however, it is very expensive heat. And, in the summer all that
additional heat from lighting loads gets really expensive.

Systematically reducing lighting electrical loads makes terrific
sense. Its great for you financially and its great for the
environment. So go to it !!

Air Conditioning Costs

• We talked about the effect that electrical loads have upon air
conditioning. There are numerous other low cost things that you
can do to reduce your air conditioning costs and yet maintain a
comfortable sales environment.
• Follow the operating instructions and guidelines provided by the
installer, manufacturer or power company.
• Have the air conditioning unit professionally maintained according
to the manufacturer's instructions. It will pay big dividends
in operating costs and reliability.
• Check the air filters regularly and replace them according to
schedule. Filters are cheap when compared to the expense
incurred when they are dirty.
• Make sure that the areas around the condenser units are kept
clear so there's no interference with cooling air flows.
• Buy a really good (talk to your air conditioning contractor)
programmable controller(s) for your system and learn to use it
effectively including night time setbacks and early morning
startup.
• Set the controller(s) for maximum efficiency and put a lockable
cover on it to keep prying fingers away. Demand charges cost
really big money and are very easy to incur.
• Keep all heat sources away from the controller so it senses
true room air temperature and not an artificial load brought
about by a nearby electric light bulb.
• Limit the wattage dealers may use in lamps and other fixtures
in their booths. It not only saves the energy required to light the
bulbs but also the air conditioning energy required to remove the
energy you just paid for in the first place. This is also a significant
fire safety issue associated with higher wattage bulbs.
• Be aware of power consuming appliances such as coffee
makers. They not only consume large amounts of expensive
electricity but also add substantially to the heat and water vapor
load within the air conditioned space.
• Use weather stripping and air locks to reduce the infiltration
of hot, moisture laden air into the conditioned space.
• Install insulation to minimize heat transfer from outside. It quickly
pays for itself.
• Observe where sunlight enters the conditioned space through
unprotected windows during the cooling season. The amount
of heat added by solar gain is considerable; heat which has to be
extracted by the air conditioning system.

Heating Costs

There are numerous low cost things that you can do to reduce
your heating costs and yet maintain a comfortable sales
environment.

• Follow the operating instructions and guidelines provided by the
installer and manufacturer.
• Have the heating unit professionally maintained according
to the manufacturer's instructions. It will pay big dividends
in operating costs and reliability.
• Check all filters regularly and replace them according to
schedule. Filters are cheap when compared to the expense
incurred when they are dirty.
• Make sure that the areas around the return air vents or radiators
are kept clear so there's no interference with heating air flows.
• Buy a really good (talk to your heating contractor)
programmable controller(s) for your system and learn to use it
effectively including night time setbacks and early morning
startup.
• Set the controller(s) for maximum efficiency and put a lockable
cover on it to keep prying fingers away.
• Keep all heat sources away from the controller so it senses
true room air temperature and not an artificial load brought
about by a nearby electric light bulb.
• If possible, provide for humidification of the air within the
heated space. Its beneficial to people and helps prevent the
shrinkage of wood and other materials.
• Use weather stripping and caulking to reduce the infiltration
of cold air into the heated space.
• Install insulation to minimize heat transfer from inside to outside.
• Observe where sunlight enters the heated space through windows
during the heating season. The amount of heat added by solar
gain is considerable and it is free.
• Consider modernizing, upgrading or replacing your heating
facility with high efficiency equipment. In colder climates the
payback can be remarkably fast. Carefully consider your fuel of
choice.
• Do not leave a direct path from the heated space to the outside.
Air locks, indirect entryways and indirect access to loading docks
will help prevent the loss of heated air to the outside.
• If you heat with oil or propane consider converting to natural gas.
The cost savings can be significant

Telephone Expense

Telephone long distance charges can be a major source of
expense. So tight control of access to long distance enabled
telephones and strict accountability for a long distance calls pays
big dividends. Carefully review all long distance bills to verify the
validity of the billing and establish whether the calls have been
made for legitimate business reasons. If long distance calls aren't
made they don't contribute to expenses. Consider blocking all
900 number calls from your business. Carefully evaluate
alternative long distance services. Periodically check the
opportunity for reducing the per minute charges offered by
competing major carriers in your area. It is amazing how
competitive carriers can be when they are pitted against one
another. Conversely, if they think that they can take advantage
of those not paying attention, they will. Consider less expensive
alternatives to the use of long distance telephone services. Email
is extremely cheap and very effective. A postcard will do for many
notification requirements and is very inexpensive.

Postage Costs

Postage and shipping can add up to substantial amounts of money.
Where possible, always charge the customer for shipping, packing
and insurance. After all, why should you absorb the cost ? Unless
a shipment is really urgent avoid any of the next day air services --
they are very expensive and are very frequently overused. For
packages up to 10 lbs. US Priority Mail is very difficult to beat cost
wise because it is reasonably inexpensive, does in fact receive
priority handling and the Postal Service provides the boxes and
labels required. Weigh everything you mail, except those things
which you know are under an ounce, so that you don't waste
postage. Postage scales are available and cheap at Sam's Club
and it really isn't your civic duty to use more postage than necessary.

Utility Costs

Some thing as prosaic as the water you use in your antique mall
can add to your expenses. Those of you who purchase water
from a water company or authority know that water isn't cheap.
And, with the availability of good quality water becoming more of
an issue all the time you don't want to waste it anyhow. An
important side issue is that sewer charges are frequently
determined on the basis of the water you use. They are far from
inexpensive too and will continue to increase.

Allowing hoses to run without a shutoff nozzle, over watering
plantings and allowing people to wash vehicles is just plain
wasteful -- and expensive too. Automatic lavatory faucet shutoffs,
flow restrictors and other water saving devices make sense and
save money too. Fix all leaks immediately.

All of these areas are well worth examining and correcting if found
deficient because they can lead to significant cost savings. These
are cost savings which go directly to your bottom line.

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Making Your Mall Customer Friendly

In previous issues we've talked about various topics concerning
mall operations. Almost all of our discussions have been centered
upon the mall itself and the mall owner's interests. One issue
we've not discussed is that of making your mall customer friendly.
After all, it is the customer who will or will not make your mall
successful.

You have to work harder than ever to retain your customers and
dealers. Further, attracting new customers isn't getting any easier.
The antiques, collectibles and crafts marketplace is extremely
competitive. Many savvy new sales bourses have opened and
internet sales opportunities are legion. All compete vigorously for
the customers you want to attract and, especially, retain.

If you pay attention to details, its very clear that there are things
which you can do to improve sales to your customers. Your
business really isn't about merchandise is it ? It's about people,
your customers, and satisfying their wants and perceived needs.
Really, isn't it about everything you do, or should do, which is
done in support of your customers -- if you want to be successful.
Use your imagination !

Whatever you can do to enhance your interactions with your
customers and make them more comfortable and at home will
improve your sales. The personal touch, without being intrusive,
is very important. Some of the major aspects of developing this
approach to customer satisfaction and retention follow.

Physically friendly

Your mall should be well laid out and very easy to navigate.
People really don't like to get lost within a physical space and
your customers are no different. Signs which point to the front
desk or to a snack area are a welcome addition. Plenty of
adequate seating and places to rest are essential. Customers
are frequently either older or accompanied by those who are older
or are in some way handicapped. If concerns about comfort or
physical staying power interfere with purchasing, reduced sales
will be the result. Help with heavy objects should be readily
available as should packaging and shipping. Finally, handicapped
access is not only the law but it also makes really good sense.

Safety issues

If customers feel that they are at risk, they will either not enter
your mall or once in, will not stay. Aisles must be wide enough for
comfortable passage, lighted sufficiently and free of trip hazards.
Snow must be cleared from parking lots and sidewalks and all
potentially slippery surfaces treated with ice melter and abrasives.
Stairways must be clearly marked and stair treads secured and
well lighted. In compliance with almost universal regulations, all
exits must be clearly marked and free of boxes, trash and debris.

Comfort

Malls should be reasonably comfortable; air conditioned in the
summer and heated in the winter. The mall has to be at least
reasonably clean; free of dust kitties, soiled carpet and obnoxious
odors. Clean, well maintained restrooms are required to keep
customers coming back. Clean, newsprint free wrapping materials
should be provided at the checkout counter.

Lighting

The lighting provided must be appropriate to the tasks being
illuminated both in intensity and color. Illuminating paintings or
fabric with sodium vapor lamps is the kiss of death for such objects
with warm color tones because customers know that they are not
seeing true colors. Cases must be well lighted so customers can
actually see the merchandise they contain. Stairwells, exits and
aisles must be properly lighted for people to be comfortable using
them. Exterior lighting of parking lots, sidewalks, entry ways and
exits is very important as well for the same reason.

These are, by no means, all the things you can do but simply a
starting point. You can probably find a significant number of other
things which will work specifically for you and your mall.

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Making Your Mall Lawsuit Resistant

Disclaimer -- This article is not intended to offer legal
advice but rather is the result of hard headed common
sense and many years of trial experience as a Registered
Professional Engineer.

Being sued, for any reason, is no ones idea of fun. Receiving
a "blueback" can put a real twist in your knickers. Even if you
"win", it does, in fact, result in an expensive, gut wrenching
experience which can put you on an emotional roller coaster.

There are people in this world, and we all know some of them,
who will sue anyone for financial gain. And, there are, all too
unfortunately, lawyers who will pursue and encourage such
lawsuits. Although litigation of this sort serves no legitimate
social purpose, it does exist -- that’s just reality.

Quite honestly, there is little you can do to dissuade someone
from filing a lawsuit if they are bent on doing so. You can and
should, however, take whatever opportunity you can to minimize
your exposure. This article is not meant as legal advice. That is
what your attorney is for. It is, however, meant to offer common
sense suggestions for trying to address issues in your mall which
could lead to litigation.

We discussed most of the issues which could make your antique or
craft mall a target for litigation in previous articles. Frankly, based upon
what we see as at least a moderate level of exposure, most antique
malls have been reasonably fortunate with respect to being sued.
However, that is no reason to let your guard down.

Anyone can be a target for a lawsuit -- for any reason. You
can, however, minimize the opportunity. Your antique or craft
mall is a place of public accommodation. You have "invited" the
buying public to come to and enter your mall so you must provide
accommodations which are reasonably free from hazards.
Fortunately, hard nosed common sense (which sometimes isn't so
common) will provide many, if not most, of the answers you need.
Don't forget that your dealers are also invitees. For legal advice
specific to your situation consult with your attorney.

Antique malls, especially, can house hazards. This is an accurate
and almost indisputable statement which you need to take to heart.
You have to be concerned about institutional hazards, that is
hazards inherent to your mall and its operations. However,
there are other hazards as well, brought about by dealer activities
and naturally occurring events. The following information is
presented to suggest examples of areas in which to look. It is by
no means comprehensive nor is it intended to be all inclusive.

Some potentially significant institutional hazards are:

Electrical hazards are quite common and can be quite
dangerous. They can result in shock and burns. Make
sure that your mall is electrical code compliant and that
all electrical anomalies are investigated. Make sure that
any indicated repairs are made properly and promptly.
Trip hazards can present serious problems. Make sure
that all carpets are securely tacked down so that there
are no protruding edges. Properly secure all stair runners
and make sure that any loose rugs don't slip or present a
trip hazard.
Ladders and step stools present special problems. If you
provide ladders or step stools for reaching otherwise
inaccessible merchandise make absolutely sure that
they conform to current OSHA safety standards and are
in excellent condition. Never allow a customer to use them,
reserving their use for your staff.
All publicly accessible interior and exterior areas must be
properly lighted. Special care must be taken to provide
illumination in stair wells, stair ways, parking lots used
after dark, hallways and doorways.
Hot water supply temperatures to all restrooms must be
limited to prevent accidental scalding. It’s a great way to
save energy costs too.
Ice and snow must either be removed from surfaces or
treated as soon as possible after precipitation to minimize
the opportunity for falls.
Pendant ice or ice which can fall from gutters and roofs
must be promptly removed or foot traffic redirected to
minimize the opportunities for injury.
Exits must be clearly marked, free from obstructions, and
unencumbered by ropes, chains or bars when your mall
is occupied.
Loading docks must be properly marked and guarded to
conform to OSHA standards. The use of loading docks
should be restricted to your staff and dealers only.
Any and all heaters and heating systems should confirm
to all applicable codes. Absolutely no open flames should
be permitted. All heating elements must be guarded and
all heaters should be equipped with tip shutoff switches.
All flammable liquids must be properly secured and stored in
OSHA compliant cabinets

Dealers too, bear responsibility for helping to assure a safe,
lawsuit resistant environment in your mall.

• Heavy objects on shelves can be quite dangerous, especially if
they are unstable and can be pulled upon by unsuspecting
shoppers or children. Make sure that anything of this nature is
properly secured and stabilized.

• Extension cords and electrical boxes used in dealer spaces
must be UL listed, equipped with switches and breakers, and
limited in load to established standards. Not only is this a
significant safety issue, but electrical loads can result in
considerable expense.

• Halogen lamps and fixtures, with the possible exception of
properly installed and mounted track lights, should be
unconditionally banned from your mall. These are very
dangerous devices which can result in spontaneous ignition fires
or severe burns to a person.

• Trip hazards in dealer spaces are common. All carpets must be
secured and edges taped. All extension cords, if they are
permitted at all, must be routed away from traffic areas and
properly secured.

• No flammable liquids or materials should be present in
dealer spaces.

• Edged weapons must be secured in locked cases or placed
above the reach of children.

• Highly toxic materials, insecticides, chemicals or other materials
usually found in decorative boxes or containers are very
frequently not marked as hazardous should be prohibited.

• Firearms and firearm safety are a special case. In addition to
presenting a very difficult series of regulatory issues, firearms
can present special dangers and liabilities. If you decide to permit
firearms regulated under current national, state or local law to be
sold in your mall, you have a special obligation to protect yourself,
your dealers and the public. Consult YOUR ATTORNEY for
guidance. By permitting firearms to be sold you may be incurring
liabilities which may prove to be unacceptable to you.

All modern firearms and antique firearms using cartridges must be
checked for the presence of ammunition and verified as being
unloaded. All antique firearms, as defined by applicable
regulation, must be checked to verify the absence of powder
charges and balls in the barrel and the absence of a fireable cap
or powder in the pan. Charges and balls in barrels of muzzle
loading weapons are a frequently found hazard and can present
a very serious threat to shooters and by standers.

Once you have established your loss prevention program and
begun to carry it out, it is singularly important to follow up and
make sure that it is enforced. Make sure that your dealer contract
contains your rules and that they are enforced. Again, TALK TO
YOUR ATTORNEY. It is far cheaper now than later.

DO NOT allow sloppy dealer housekeeping !! By doing so YOU
are allowing them to put you into a very vulnerable and almost
indefensible legal position.

Let the experts help you with your loss prevention program. Talk
to your insurer ! They may be able to assist you with your loss
prevention issues. Also consider talking to your local fire
department. They also may be able to assist you. There is
usually plenty of good competent help available; the challenge is
finding and using it. Follow their advice regarding loss prevention.
But, more than anything else, use your common sense.

If you have the slightest hesitation about addressing these issues,
you need to consider the following question. Ask yourself how
you would respond to a persistent attorney's attack questioning,
a judge's clarifying questions and how your position would look to
a jury sympathetic to an injured plaintiff. Be particularly aware
that juries very sympathetic to injured children and can award
huge sums to them or their survivors. The publicity, especially if
you are deemed to be complicit, associated with a lawsuit can be
devastating to your business. The associated expense can also be
financially devastating. If you are looking for thrills the court room
is not the place to experiencing them.

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