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Chain store RANT
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<blockquote data-quote="M5farm" data-source="post: 1116106" data-attributes="member: 18487"><p>Here is a new business I am going to start. I will sell purple widgets at 20$ each the cost is 17.00 the profit margin is 15%. At this price I can sell 207 widgets a week no more no less. </p><p>I will need 2 employees to sell these. 40 hours a week at 8.00 an hour. 320.00 per employee</p><p>My rent is 600.00 a month </p><p>Electricity is 500.00 a month </p><p>For arguments sake we will not have any machinery in the whse and no delivery </p><p>I will make 500.00 a week salary as owner of the company </p><p></p><p>Expenses are 640.00 wages </p><p> 600.00 rent </p><p> 500.00 elec </p><p> 500.00 salary </p><p> 2240.00 total </p><p>Cost of material 1904.00</p><p> 4144.00</p><p> 207 widgets 4144.00 </p><p>Gross profit 0 </p><p>I had a customer come in and say he would buy 100 more widgets a week if I would drop my price 1.00 5%</p><p>Expenses are 640.00 wages </p><p> 600.00 rent </p><p> 500.00 elec </p><p> 500.00 salary </p><p> 2240.00 total </p><p>307 widgets 5219.00 cost </p><p> 7459.00</p><p>307 widgets 5833.00 revenue </p><p>Loss of <1626.00> </p><p></p><p>I would have to fire both employees cut my salary and they would I would have to work in the dark. For nothing</p><p></p><p>a 5% cut in prices effects more than most realize</p></blockquote><p></p>
[QUOTE="M5farm, post: 1116106, member: 18487"] Here is a new business I am going to start. I will sell purple widgets at 20$ each the cost is 17.00 the profit margin is 15%. At this price I can sell 207 widgets a week no more no less. I will need 2 employees to sell these. 40 hours a week at 8.00 an hour. 320.00 per employee My rent is 600.00 a month Electricity is 500.00 a month For arguments sake we will not have any machinery in the whse and no delivery I will make 500.00 a week salary as owner of the company Expenses are 640.00 wages 600.00 rent 500.00 elec 500.00 salary 2240.00 total Cost of material 1904.00 4144.00 207 widgets 4144.00 Gross profit 0 I had a customer come in and say he would buy 100 more widgets a week if I would drop my price 1.00 5% Expenses are 640.00 wages 600.00 rent 500.00 elec 500.00 salary 2240.00 total 307 widgets 5219.00 cost 7459.00 307 widgets 5833.00 revenue Loss of <1626.00> I would have to fire both employees cut my salary and they would I would have to work in the dark. For nothing a 5% cut in prices effects more than most realize [/QUOTE]
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