MediocreFisherman135 karma2019-04-02 17:00:16 UTC
He's just charging people to use his space.
Pretty much how my ISP can't get in trouble if I'm downloading something I shouldn't. What they sell is none of his business. Now, it may behoove him to ensure there is at least an air of legitimacy, but I don't believe he can get in trouble with the IRS if the vendors aren't paying taxes.
If you rent a building to a retailer, and they don't pay their business taxes, will the IRS come after you?
View HistoryShare Link
MediocreFisherman114 karma2019-04-02 16:11:37 UTC
There use to be a porn shack at the Ceasar's Creek flea market in Cincinnati.
MediocreFisherman59 karma2019-04-02 16:30:27 UTC
He may not answer this, but lets just do a math exercise.
My dad buys and sells antiques and goes to a lot of antique shows. Its generally $50 to setup an outside booth.
Lets say on average he has 100 vendors.
That's $5000 in booth rental fees on a weekend.
Then, $2 for parking for buyers, and you have 1000 people come through on a weekend. That's $2000.
So you've taken in $7000 in income. 4 weekends a month. $28,000
Now we've got to make some assumptions.
No electric to vendors. So your electric bill is going to be like $100 a month for the management building.
He said the land is an old drive in movie theater. I know land in OKC is cheap. Looks like maybe 50 acres. I'm just gonna wing it and say $1500 a month for lease or rent.
So you have about $26,000 left.
Now you have employees. Lets say he has 10 employees between cleaners, people charging for parking, people picking up vendors dues, etc. And they probably work 12 hour days, both days of the weekend. So thats 24 hours x 10 employees, 240 hours. Lets say he pays them $15 an hour after taxes and what not are included. So $3600 a weekend, $14,400 a month.
So now you have about $11,500 left for the month.
Now you have taxes. Lets just guess at 25% business taxes.
You are left with about $8000 a month.
I probably fucked up and missed some other expenses, so lets apply a 25% fudge factor.
I'd wager he's probably seeing $5000-$6000 a month income. But, you have to remember thats going to go up in summer, down in winter, and vary greatly with the weather. If you have a cold winter or a rainy summer, you still have to pay all your other expenses.
Thats just my back of the napkin guess.
MediocreFisherman45 karma2019-04-02 17:37:48 UTC
I can only imagine how much it sucked buying sex toys before the internet.
"Pssst, hey, you guys sell any butt plugs?"
"No...I need bigger than that."
MediocreFisherman38 karma2019-04-02 17:24:32 UTC
But what if its something for where the sun don't shine?
Copyright © 2014 BestofAMA.com, All rights reserved.
reddit has not approved or endorsed BestofAMA, reddit design elements are trademarks of reddit inc.