From: simon@simonjohnpiano.com
Subject: Mi Sol Bar contract renewal
Date: Tue, 8 Sep 2009 17:35:23 +0200
Dear President and Community.
I felt that I wanted to express my thoughts regarding the consideration of renewing Bob and Maggie's contract and alleged talk of proposing a considerable increase in rent for Mi Sol bar.
I have been on Mi Sol like many for the last 18 years, and I have witnessed many attempts by various tenants and employed stewards to provide a consistent bar service to the community. The first year I was at Mi Sol, the community didn't even own the bar. It had been sold to a partnership of owners who promptly closed it down and ran up a debt to the community. An AGM elected to purchase the bar back from these individuals for 20000 pounds to be paid back at 5000 pounds per year. For four years the community rented the bar out for close to the 5000 per year to various tenants until it was once again property of Mi Sol.
My recollection of detail is not accurate, I am sure if I tried to relate chapter and verse of who was there and when somebody would correct me. But I am sure most will agree, during my time all tenants have attempted and failed to run the bar in a consistent and profitable, therefore sustainable manner until Bob and Maggie.
Why did previous tenants fail? Because the truth is Mi Sol Bar is not a viable enterprise, unless you are prepared to work inhuman hours, 17 hours a day, seven days a week, 52 weeks per year. If you are prepared to be open all those hours, you will capture the business to be had, when it passes your door. During August those hours are lucrative. But make no mistake, for most of the rest of the year, many hours go by with barely a trickle of any money being paid into the till. But the bar service remains available to those who require it.
To calculate the profitability of the bar, one would have to suggest to Bob that he calculates his annual profit multiply 52 weeks by 7 days by the total daily hours he and Maggie work and divide that profit by the result to return how much per hour those two actually earn.
In my marketing experiences, one is always invited to turn that equation upside down to decide whether or not a venture was viable. Determine how much money you want to earn. Determine how many hours a
day you want to dedicate to an enterprise. Divide your desired income by the hours prepared to work to calculate how much your hourly rate needs to be. Ask your self how practical that is to achieve. If it is
achievable the business is viable. If not, look at something else.
I would actually be afraid of suggesting Bob and Maggie do that exercise. I may be wrong, I actually would be pleased to be wrong, because I think they deserve to be well rewarded for their long hours, sterling efforts and relentless hard work.
Bob and Maggie have succeeded where all others have failed. In exchange for non stop hard work and dedication to service to the community, they are rewarded with what they consider to be, an acceptable living. We shouldn't begrudge them that, we should be pleased. Every body is winning!
Mi Sol Bar is an important social hub to the community. I consider us most fortunate to have talented people running it profitably for themselves and consistently for the community. They have invested profit back into the venue to improve vastly the surroundings enjoyed by the customers and raised the standard of maintenance. Their professionalism has earned Mi Sol bar respect by their suppliers for the first time.
Please don't make Bob and Maggie feel like they are victims of their own success. In view of the hours they have to work to extract a living, In view of factors unusual to Mi Sol, 1. a closed community 2.
Higher than normal Electricity and Water costs, I would propose that there is an argument to consider a rent reduction, but "Like that is going to happen!"
I would like to express my hope that the community will join me and compliment Bob and Maggie for all of their hard work, and invite the community to consider how they can best encourage them to extend their
contract with us.
Mi Sol please don't try and fix what is not broken!
Regards.
Simon John Edgington
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