How much money can I expect to make a day (ball-park) with a storefront?

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Loopdan
Posts: 53
Joined: Sat Oct 01, 2016 8:51 am

Sat Mar 09, 2019 12:13 pm

@Oguzksk

The OP asked how much you would need to sell everyday in order to make $100k a year. I said $42k is the gross monthly sales needed to generate a $100k net income, based on a profit margin of 20%. I get that's not the answer people want to hear when they start out, but I'm trying to be realistic.

To be blunt: $150k in gross sales in the season will not result in $100k net income. This is a fantasy.

Your expenses will be much much more than your CoGs, rent, and electricity. You will need to hire help unless you like working 15 hour days seven days a week. Your labor costs will be higher than you think. Everything will cost more than you think. There will be expenses you haven't even considered. Insurance, payroll taxes, repairs, cleaning supplies... it goes on and on.

I wish you luck, but I encourage you to not rely on this income until you have provable results.
Oguzksk
Posts: 11
Joined: Tue Jun 26, 2018 10:33 am

Sat Mar 09, 2019 4:54 pm

@ loopdan

I dont want to be in argument but I have already written every expense of the store might have. Also I only pay electric Water and gas already included with the rent.

If you are saying we need to make 42K a month and $500K gorss a year to hit 100K profit, you need to back up your claim. It is half a million dollar gross. You know that right! Even restaurants dont hit half a million dollar gross.

I am not open 15 hours a day only 10 hours a day. This is not a owner absentee store. I am working at the store. Labor costs usually are 25 percent but in my store it will be minimum.

Dont get me wrong and thanks for the feedback but I want to see how did you come up with half a million dollar gross in a year. This sounds very unrealistic to me.
Loopdan
Posts: 53
Joined: Sat Oct 01, 2016 8:51 am

Sun Mar 10, 2019 5:01 am

@Oguzksk

Those numbers are based on a 20% profit margin.

The original poster asked how much sales a day would be needed to net $100k a year. So I started with the $100k a year, applied a 20% profit margin (which I explained is probably not realistic in a storefront) and did the math.

$500,000 * 0.2 = $100,000
mrjosco
Posts: 38
Joined: Fri Jun 06, 2014 2:48 pm

Mon Mar 11, 2019 6:28 am

Loopdan wrote:
Sat Mar 09, 2019 12:13 pm
@Oguzksk

The OP asked how much you would need to sell everyday in order to make $100k a year. I said $42k is the gross monthly sales needed to generate a $100k net income, based on a profit margin of 20%. I get that's not the answer people want to hear when they start out, but I'm trying to be realistic.

To be blunt: $150k in gross sales in the season will not result in $100k net income. This is a fantasy.

Your expenses will be much much more than your CoGs, rent, and electricity. You will need to hire help unless you like working 15 hour days seven days a week. Your labor costs will be higher than you think. Everything will cost more than you think. There will be expenses you haven't even considered. Insurance, payroll taxes, repairs, cleaning supplies... it goes on and on.

I wish you luck, but I encourage you to not rely on this income until you have provable results.
I second this. I am not wanting to be negative, either - but realistically there is no way you are going to pull a 66% margin.

If this business pulled a 66% net margin the competition would be even more intense than it currently is... until the margins returned back to reasonable levels.

If you prove me wrong I will be VERY happy for you... and I hope you find a way to be so successful - but my experience indicates that things won't be quiet as smooth in real life as they look on paper.

Heck, even pulling in $150,000 gross revenue will be a mighty challenge of its own.
Oguzksk
Posts: 11
Joined: Tue Jun 26, 2018 10:33 am

Thu Mar 14, 2019 1:06 am

I am mister softee since 2014. Last year I made $80K gross and net $60K. Gas and products. Decent profit margin right?

I am open only for two weeks and the weather is not that well. I am doing pretty good. Every week my sales are going up. I already got two private parties. :)

I was always thinking new orleans shaved ice ( hawaiin shaved ice) is more addicting than ice cream or it is just me. I just confirmed yesterday that same costumer came 3 days in a row! Seeing same costumers over and over again it is great.

You can not relay on shaved ice only. I carry over 25 milkshakes ( which will be increased) and over 20 sundeas and cones. I am going 50/50 but milkshakes are going pretty well too.

The competition is not intense yes but it is because people do not know about the shaved ice and ice texture. Last week one costumer came and said she hate snow cones. I have gave her fluffiest ice she had. She was amazed! I can tell so many stories like this in only two weeks. People need to get used to shaved ice. It will take time but not impossible.

I have totally over 120 products so far and I am going to add more. There are 4 pelican snow balls and one new orleans shaved ice in my state. The new orleans syle shaved ice is open 9 years and pelican snow balls are open over 2 years. And they sell only shaved ice and they are closed in winter. Looks like it is a profitable business. :)
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