Welcome to Bazar Madinah
Rent Free Bazar!
The One and Only Bazar to bring back the Gold Old Times.
The times are getting tough and so is getting into business getting tougher by the day. You wake up one day full of motivation to start a business only to realize the best spots have been occupied by the old, lazy and rude businessmen. Thinking a little bit more you remember how expensive it is to start a business – a whole lot of capital for being a whole lot farther away from the capital.
Let’s explore further!
Market Stalls
Total Landing Area
THE RENT PROBLEM
Everyone everywhere pays rent – one way or another. You rent a house, you rent a car, you rent a shop. You rent, I rent, everyone rents – Guess who ends up paying all this rent eventually? No, not just the renter but the rest of the people down the rent chain – You and I – the simple consumers.
Let’s look at the common distribution cycle:
Manufacturers pay rent for the place, pay rent for the machines, and maybe rent a few more. To profit they do what? – add the rent into the price. Next, the Distributors – who, again, have to pay the rent for various things. After that, Wholesalers – again rent and then we have Retailers – again and again rent. Finally our turn.
Now that might not seem like a big problem when it feels like 1 rupee per biscuit but is that really the case? We are paying 2-10 times the production cost just for “overhead costs” aka mostly rent.
Accumulated Rent Can Develop The Nation at a Rocket’s Speed (Or Faster)
Imagine. The rent of an average business is about 20k-50k PKR (cheap area) or 50k-100k PKR and let’s not forget the security/deposit which is roughly the same. Let’s take 50k-100k PKR per person as an example. Now, before you start a business you must be able to afford the cost of an year or two:
50k-100k times 12 = 600k-1200k (6-12 Lac) per person for 1 year that he must prepare (or 12-24 Lac for 2 years).
Now, we know that there are many many businessmen and women. If we assume a 100 people then that’s 6-12 CRORES (600-1200 LACS) per year. And if we assume 10,000 then that becomes 6-12 ARABS (600-1200 CRORES) and we know that there are more businessmen than that. What happens to all that money?
Two things happen: (1) Money stays stored in bank and, (2) It goes to the landlord. The problem is much bigger than you can ever imagine.
1. Money In The Bank
Isn’t the flow of money that drives nations to success and prosperity or is it hoarding of money – like the rich who keep it?
That money stays stored and surely once or twice used in emergencies but most of the time it is unattended – at least by you. The money that, if were there no rent to pay, could help the sick, the poor, the needy – to develop healthcare, the services for the citizens and even for research of important things. That money, full of potential, gets wasted. And that money multiplied by so many and further multiplied by so many years becomes, from an unimaginable potential and wealth of the nation to, an unimaginable waste.
But, wait! Money in the bank has another problem: Riba or in flowery terms “interest”.
Over 6-12 Arab PKR being in the bank. Unattended by you. The bank has full control. Guess what they do? Business and Riba with your money. What do you get? Nothing for the business from your money they used and a piece of hell for Riba that they give you. Not only do they profit off of you but they also perpetuate the loan game and the Riba game and therefore you nor other are ever able to escape. Talk about a losing game!
Naturally, with that much money they have great power and influence. What are they able to do with that? Change the whole country to become super great and efficient. What do they do? Yah, nothing – except give everyone crumbs and pennies to keep happy. What a circus.
2. The Landlord
The landlords, on couches like kings, just taking in all that money without any of the work that builds great skills and great character. Guess what happens when there are too many landlords who do nothing while the rest of the people work hard to pay such people rent who make no efforts to make society better? People become worse and full of hatred and negativity towards everyone especially towards landlords and the people in authority. And it does not help society when the government gives the vendors help to pay the rent because it goes to the landlords who waste the money on things that the market does not need – the market is skewed towards the people who have greater money rather than what is needed in the society.
THE PERMANENT PROBLEM
Most of the vendors aren’t up to standards worse many are rude and claiming that they are selling at a loss (a huge lie). Majority of the excuses always comes down to the recurring costs (i.e. rent) because once you buy products you don’t worry too much since you can sell them even after a few months. The other major issue surrounding rent is once you pay you must stay whether you are ill or selling nil since you have paid your bill.
Lazy Vendors
Most vendors, once they rent, become lazy since they own the place now. They come later than 9 am while the world is up at 6 am. They are not friendly nor are they fast in their dealings. They are impatient when someone tries to exercise their right to bargain though they incur no loss (most prices are artificial prices which are anywhere between 2.5-10 times the cost of the item). They take up the most important locations and since most customers wouldn’t prefer them they end up indirectly increasing prices of everything: people use more fuel, waste more time, prices are expensive because of the prices at prime locations. And this all adds to the ever increasing traffic problem and pollution. Let’s not forget this also affects us – customers – our attitude and outlook of life (everything is expensive and unfair) and to bear the burden of the expenses to get what we are owed by society: fair prices, good quality, friendly vendors and a great community.
Market Inefficiency
The other issue with permanent vendors, other than them being awful, is that they take up prime locations but not utilizing the opportunity and this affects the efficiency of the market – the right people do not get the right items at the right prices thus hurting the economy. Vendors continue to sell lower quality products because they have the upper hand of a permanent and good location, and the power to sell what they wish and not what benefits society. Marginalizing good people who wish to bring revolutionary products – they do not get to see the light of day to attract customers and bring change to society through more efficient products.
Issue of Sub-Leasing
Once a vendor gets a good location for a good price they abuse this opportunity by sub-leasing to another vendor at a higher price and thus the rent becomes double and so the prices increase as well or his profit will be lower and so he gets less of an opportunity to grow. This stunts the market and for the people to get what they need and as a result society suffers – especially the lower middle-class and the poor people.
Forced to Sell
Once you make the rent agreement you have nowhere to go and the clock starts ticking the very second you sign the agreement – every hour costs 90 or 180 or maybe even 4000 PKR. What if you only wanted to sell for 1 month? Now you are stuck to sell to recover the cost of rent for at least 2 months since that’s the common agreement. What if you got severely ill? You gain no revenue but is the landlord going to be so merciful to let you off the hook? Maybe they might say pay this month and half of next month. Maybe. The landlord needs his money. What if you signed the agreement too early on and now you have to waste 3 months worth of rent money – you lost your opportunity to climb with speed. What if you need the opportunity to experience selling like a real vendor for a few days without having to commit to rent for a few months? Not possible. You will just have to sell on the streets and get treated like garbage! You know what I’m talking about.
The Solution: Remove the Rent!
These problems will be gone:
- Expensive prices.
- Money uselessly staying in the bank.
- Riba through storing money with banks.
- Too difficult to start business because it requires 20+ Lacs to start a small business.
- Landlords enjoying fruits of the hard-work of the common businessmen while they influence the market negatively.
- Good locations taken permanently.
- Bound to stay and work the whole month and more since you have paid and must recover the rent and other costs.
- Expensive sub-leased location.
- Market inefficiency through lower quality yet expensive products and no new revolutionary and efficient products on time
- Work as cheap labor to gain experience to sell.
By removing the rent all these problems and much more will be gone and InshAllah within one year the whole community can be transformed. Below are some of the benefits by removing rent and permanency:
- Riba is reduced and the effect of Riba as well
- The bar of entry into business is reduced to ZERO.
- The people who are more fast, hardworking, disciplined get to enjoy the opportunity of the prime location
- The good people get the opportunity to sell at a good price to so many customers
- The vendors never have to worry about any recurring costs since there is no rent and there is sunlight and electricity for cheap at night.
- The common people and vendors are given the chance to experience selling something new without worrying about the extreme risk of rent and buying in bulk and other investments in the shop – they can just buy and sell a few products and experience selling – someone will eventually buy since they have a great location and so many customers.
- The people who are awful vendors get pushed to the back location or worse they get banned and therefore more good and efficient people get a greater opportunity and thus people become hopeful and enjoy cheaper prices and great relationships.