Business Takings

As we all know that the cost we(customers) buy things in the store is most of the time more than 100% the cost of manufacturing. But what a lot of people do think is thats a lot of profit to the company, well, not true in most cases. Theo Pahitis did the breakdown of a daily store takings as narrated below*:

• First and foremost you have to pay UK VAT (you really do not ant to piss him off)
• Remove the cost of stock sold to the customers, which is usually about 50% of the takings
• Rates, rent, electricity, etc all cost about 20%
• The staff that worked hard on the shop floor cost 15% of the takings
• Warehouse, buyers, distribution network, etc cost about 10% of the takings.
• This now means that the 5% is left as the profit, thats of course if the buyers got it right.

*reference to Britain's Next Big Thing shown on BBC2 on 3rd May 2011 at 8.00pm UK Time