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Financial Data

Our Mailbox stores offer value, a full range of business and home office services, and impulse merchandise to their customers, all at competitive prices. Profitability, depends on many variables. The location, level of service, promotional efforts and the management skill of the owner are just a few of the many factors that will ultimately determine the level of profit.

Profit Projection Worksheet

You can use the worksheet below to project the level of sales your store would need to reach to achieve a range of profit levels. If you have any questions one of our representatives would be happy to help you work through the process.

  • Fixed Costs
  • Variable Costs
  • Sales

Variable Costs

Enter the costs which are driven by your level of sales. These are represented as a percentage of total sales. Enter percentages as whole numbers.

Cost Category Cost Description Average Cost Range Estimated Cost
Cost of Goods Sold A well run pack and ship / mailbox / business services center will typically have an overall cost of sales of about 42% (Bizminer Industry Analysis, December 2008). This includes merchandise cost and the costs associated with packing, shipping, and all other services that your store will provide. 40%-47%
Wages You should strive to keep your overall labor costs (including a salary dedicated to the owner if you are going to work the store full time) at no more than 16% of sales (Bizminer Industry Analysis, December, 2008). Typically, the hours in this business are such that the owner and / or their spouse can work the business alone; adding hours only during peak shipping periods. Your actual labor percentage to sales should be significantly lower. 10%-16%
Payroll Taxes Employer paid payroll taxes.. 1%-1.6%
Workers Compensation Workers Compensation, check with your state to find your rates. .25%-.5%
Total Variable Cost

Fixed Costs

Enter your Costs which remain the same from month to month, this includes salary and rent.

Cost Category Cost Description Average Cost Range Estimated Cost
Rent Location rent set by the lease agreement.Local realtors will give you a good idea of the cost range. $9,000-$15000
Manager or Owners Salary Salary paid to Manager or to yourself as the owner. $20,000
Health Insurance Health insurance for your employees. $100
Business Insurance General business coverage and includes public liability, fixed articles, theft, and other coverage. Contact a local insurance agent for quotes. $1,300-$1,600
Electric Utilities The local power company can give you estimates of electric cost for retail establishments by square foot. $1,300-$1,600
Telephone/Internet Utilities Your local phone company will give you insight into this nominal cost. $700-$1400
Supplies Office and store supplies. Pens, tape, paper, printer cartridges, and like items. $600-1,000
Advertising Routine advertising is always recommended to keep your store in front of the public. The local newspaper will provide various rates and programs. $1,000-$1,800
Depreciation Periodic write-off of capital cost items. Your local accountant can provide further information. $3,000-$5,800
Other Expenses Catch-all for other costs that pertain to your business operation. $100-$300
Total Fixed Costs Annual set costs.

*This example of key fixed cost categories is not intended to be complete and should be used for general information purposes. It is always prudent to do your homework and develop a range of cost levels that can be used for financial planning purposes.

Sales

Sales per square foot will vary from location to location and from store owner to storeowner based on many factors. The size of the community, general customer traffic of the shopping center, store location, proximity to the anchor, previous business ownership, management and merchandising experience of the owner, and personal daily involvement of the store owner are just a few examples of the variables that will determine your level of sales. The business skill and experience of each owner, along with the level of involvement in and commitment to their store will have an impact on their success.

Profit Percentage Profit Amount Sales Per Year Sales Per Day Sales Per Hour
Break Even
5%
10%
15%
20%
25%
30%

*This worksheet is intended for educational purposes only. Contact one of our financing experts to get professional guidance regarding industry best practices and profit projection techniques.