Inna as a fomer store owner, which store? You should know that gross margins don;t tell the entire story of net profitablity.
You have to add in 3% credit card processing,
store rent
store electricity
store security
store insurance
store internet
marketing and advertising costs
saleries
breakage/theft
display costs for merchandise
customer discounts if given 10% or greater
delivery costs/vans, shipping cost of insurance for vehilce etc.
when you factor in all of these costs most stores are running on 10% profit if that. If this business model was so profitable the market would be flush with stores rather than the reality is that the internet and on line sales are killing manya store.
The only reason Audio Doctor can survive is the custom market we do large custom projects which tend to have better parts margins, and large charges for labor.
And in order to be a dealer for many storried lines you have to purcahse display equipment at a cost of thousands to many times that, a new line can cost a retaler $5,000.00-50,000 or more to accquire.
High end audio is a shitty business,
Dave Owner
Audio Doctor NJ
You have to add in 3% credit card processing,
store rent
store electricity
store security
store insurance
store internet
marketing and advertising costs
saleries
breakage/theft
display costs for merchandise
customer discounts if given 10% or greater
delivery costs/vans, shipping cost of insurance for vehilce etc.
when you factor in all of these costs most stores are running on 10% profit if that. If this business model was so profitable the market would be flush with stores rather than the reality is that the internet and on line sales are killing manya store.
The only reason Audio Doctor can survive is the custom market we do large custom projects which tend to have better parts margins, and large charges for labor.
And in order to be a dealer for many storried lines you have to purcahse display equipment at a cost of thousands to many times that, a new line can cost a retaler $5,000.00-50,000 or more to accquire.
High end audio is a shitty business,
Dave Owner
Audio Doctor NJ