Surfside Beach leaders on Tuesday, May 13, approved a sales agreement for Perry鈥檚 Bait and Tackle to sell the town鈥檚 merchandise.
The town currently sells t-shirts solely at the town hall for $20.
Mayor Robert Krouse said the town pays a total of about $10 or $12 per transaction. The town assumes about $3 for sales tax and credit card fees and either $7 or $9, depending on the shirt, for the cost of the shirt, he said.
In the sales agreement, Perry's Bait and Tackle will receive a 35% cut from all sales of the town鈥檚 merchandise. A representative from Perry鈥檚 said they plan to sell the shirts for $25, with the business profiting $8.75 per shirt sold.
鈥淸We] are making either $7.25 or $9.25. So, very close to the numbers which we are currently making which are $10 and $8,鈥 Krouse said.
The sales agreement states it's Perry鈥檚 responsibility to provide the town a complete accounting of sales of town-provided merchandise, broken down by quantity, product type and funds received, on a monthly basis.
Council member William Kinken said he would prefer the breakdown on a weekly basis. Otherwise, there could be excess inventory if the town were to place merchandise orders on a monthly basis, Kinken said.
A representative from Perry鈥檚 said their system tracks retail sales on a daily basis and they will have a better idea on how often to report once they see how much space the merchandise will occupy in their store.
Council member Chris Stamey said the split of sales seemed unfavorable for the town.
A representative from Perry鈥檚 said the 鈥渋ndustry standard鈥 for such an agreement is 50/50 and a few years ago Perry鈥檚 offered a 60/40 split. He added Perry鈥檚 pays rent to the town, hires the staff and provides the facility.
Council member Harry Kohlmann claimed there was another vendor, a kiosk on the pier, willing to sell the merchandise for no cut of the sales.
鈥淲hen I told him how much the store out there is going to get, he almost fell down,鈥 Kohlmann said. He added the vendor most likely is no longer interested in selling for free, considering the agreement with Perry鈥檚.
Council member Shawn Fallon said no disrespect to Perry鈥檚, but the town needs to make money.
鈥淚 don鈥檛 see how you can assign it to one business and not open it up to other businesses,鈥 Fallon said, adding she was glad to see an end date.
Town Administrator Gerald Vincent said he is unaware of a vendor willing to sell for free, but recalled an 鈥$8 service fee.鈥
After Tuesday's discussion, the town council聽voted 5-2 to approve the sales agreement with Perry鈥檚. Council members Fallon and Kohlmann voted against the sales agreement.
The sales agreement between the town and Perry鈥檚 ends March 31, 2026.
At a previous meeting on April 8, town council voted against a proposal to renovate the town鈥檚 100-square-foot office space on the pier to operate as a retail store for the town鈥檚 merchandise.
The concept was to add a window for customers to walk up to purchase merchandise. Public works director John Adair said at the April 8 meeting the renovation would cost just under $18,000 and take about three to four months to be ready to sell.
The town voted against the project 6-1. Fallon was the only one in favor of the renovation.
A representative from Perry鈥檚 Bait and Tackle said at the April 8 meeting the business has offered to sell the town鈥檚 merchandise and would still like the opportunity to do so.
Krouse added renovating the office building on the pier should be a priority this upcoming winter.
Budget talks continue聽
Council member LaVerne Kreklau said shared concerns Tuesday about the budget after he said he didn't share during the budget retreat.
Kreklau said the land behind town hall will be sold and that income should have been in the budget.
He also said the budget should account for savings in anticipation of the public works building that was removed in the approved budget scenario.
Payroll for employees, Kreklau said, is the biggest expenditure for town budgets and more thought should be taken for the positions added to the fire station, such as the fire station鈥檚 new executive assistant position valued at $70,068.
Kohlmann said he agreed more thought needed to be put into the budget.
鈥淎t the budget meeting, it did seem that people just wanted to get it over with,鈥 Kohlmann said.
Krouse said he was frustrated that the budget retreat ended because 鈥渆veryone seemed ready to go home鈥 but there was more to discuss.
Fallon was not present at the budget retreat and said she has motions that will save $50,000.
The council voted to schedule another budget workshop before the first reading of the budget. By law, municipalities must pass a budget before the end of the fiscal year on June 30.
Parking clarity
鈥淣o parking鈥 areas will be painted yellow to add clarity on prohibited parking spaces. Tickets for prohibited parking have been issued for $200.
Council agreed the clarity would accommodate visitors鈥 understanding of where to park. The areas receiving yellow lines will be on:
- 1st Avenue South and Dogwood by the stop sign and directly across the street at the intersection
- 1st Avenue North and Yaupon Drive at the north east corner
- 3rd Avenue North and Yaupon Drive
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