How much NET profit is there???

[system]

jack:

who in your area knows what an italian beef sandwich is? i am from the south side and i’m amazed whenever i travel outside of this area at the poor quality of food. my real concern would be making food like i do and people just aren’t used to it. it would be like j rock or whatever his name is opening his pizza place near midway. it wouldn’t go over that well.
how come evryone that visits florida tells me there is no good pizza.
people are used to eating crappy food i guess.

what made you relocate anyway?

Are you really from the Southside, or a South Suburb like Tinley Park or something?

 

[system]

i’ve lived here my entire life and would like a change of scenery and weather. i do now live in the south suburbs and own and operate 2 stores there. my wife is from the south and we think about moving down.
let me know if i can help you with any recipes or ideas for that new place!

i’ll ship down some beef and sausage with some turano bread.

 

[system]

DFW:

Also keep in mind the sales levels. This poster said he has $62k a month. The higher your sales, the higher your % will be as your fixed costs stay the same.

He actually has high labor costs. I would cry if my labor costs approached 26%.

Do you deliver?

 

[system]

Anonymous:

DFW:

Also keep in mind the sales levels. This poster said he has $62k a month. The higher your sales, the higher your % will be as your fixed costs stay the same.

He actually has high labor costs. I would cry if my labor costs approached 26%.

Do you deliver?

I actually just added that this month, so it was not included with the % I posted.

 

[system]

jack:

i’ve lived here my entire life and would like a change of scenery and weather. i do now live in the south suburbs and own and operate 2 stores there. my wife is from the south and we think about moving down.
let me know if i can help you with any recipes or ideas for that new place!

i’ll ship down some beef and sausage with some turano bread.

I would love to hear any recipes you have and give them a try. Can you email me some:

dfwpizzaman at yahoo dot com

Portillo’s ships italian beefs, and for a relatively reasonable price. I get them shipped to me once every month or two.

 

[mattbau43]

Nick, My sales/expenses to yours during my slowest months. Id love to hear more about your business and how it is growing.

 

[lilian]

DFW:

jack:

i’ve lived here my entire life and would like a change of scenery and weather. i do now live in the south suburbs and own and operate 2 stores there. my wife is from the south and we think about moving down.
let me know if i can help you with any recipes or ideas for that new place!

i’ll ship down some beef and sausage with some turano bread.

I would love to hear any recipes you have and give them a try. Can you email me some:

dfwpizzaman at yahoo dot com

Portillo’s ships italian beefs, and for a relatively reasonable price. I get them shipped to me once every month or two.

DFW where is your place at,and what is it called i like to give it a try i am in rockwall

 

[Pakula_s_Pizza]

Im a little late on this post but i got to put my 2 cents in…in The original estimates it looks as if you might be forgetting some expenses…
I didn’t see sales, income, school, property taxes
Exterminater
Hood cleaning
Floor cleaning and windows(if you get it done)
Water
Linens
Paper(not the food paper, Pens, pads, markers)
Building dept fees
health dept fees
accountant
lawyers
payroll(if you use adp or paychecks or a service like that)
general repairs…

Everyones business is different with profit margins so its hard to mesaure up against any one but your competition.
I can tell you that i see people paying almost a dollar more for grande than i do…But at the same time the rent for the store could be one third of mine…So many factors go into it. You should use quick books and find out where your money is going, what costs are too high and then work from there. Maybe working more could save you money, ordering from someone different(salesman become comfortable and play games.)Whatever you do dont cut corners!!
Good luck

 

[pjcampbell]

DFW:

NicksPizza:

Here is my November info:

Sales 15277
COGS 4701
Advertising 250
CC fees 125
Insurance 165
Repairs 575
Telephone 160
Utilities/Rent 1400
Wages 2762

Cash Flow 5604

I then take out sales tax (1070), payroll taxes (880), unemployment tax (85)business loan (660), other misc vendors expenses (400). Other misc debt service means 600 more out . . . for net profit of near about $1909, which is about 12.5%. I chose this month as it was a high sales month for that quarter. Expenses run pretty even percentage except fixed costs.

I think the difference in my perception is that you equated your cash flow number with net profit, which in my accounting is different. I think j_rokk does it differently as well. I register net profit as unencumbered money that I can spend any way I want to or put into a bank account that no one has any demands on.

The methodologies are going to bring similar results. Sales tax is taken out of mine already. The numbers I showed were net sales. Same as payroll taxes and unemployment. The only thing you subtract that I did not is debt service.

The only thing that is stopping you from having a number closer to 30% is your sales. If you had $34k in sales like I do, you’d be at 30% as well.

Where does your own take home fit into this equation? Is that the $1909?

I guess what I am trying to figure out, as a prospective owner operator, is what I need to take home without changing the way we live, which is going to require about 50,000 CASH into my pocket per year. We live in a very busy expensive area right by NYC in case you’re wondering what is eating up all of my money. In addition I figured into that number health insurance for myself and family which is also very very expensive currently being paid for by my employer.

It is pretty daunting :shock:

 

[NicksPizza]

pjcampbell:

NicksPizza:

Here is my November info:

Sales 15277
COGS 4701
Advertising 250
CC fees 125
Insurance 165
Repairs 575
Telephone 160
Utilities/Rent 1400
Wages 2762

Cash Flow 5604

I then take out sales tax (1070), payroll taxes (880), unemployment tax (85)business loan (660), other misc vendors expenses (400). Other misc debt service means 600 more out . . . for net profit of near about $1909, which is about 12.5%. I chose this month as it was a high sales month for that quarter. Expenses run pretty even percentage except fixed costs.

Where does your own take home fit into this equation? Is that the $1909?

I guess what I am trying to figure out, as a prospective owner operator, is what I need to take home without changing the way we live, which is going to require about 50,000 CASH into my pocket per year. We live in a very busy expensive area right by NYC in case you’re wondering what is eating up all of my money. In addition I figured into that number health insurance for myself and family which is also very very expensive currently being paid for by my employer.

It is pretty daunting :shock:

Man, that post was over a year ago, so I had to go re-read the whole thread to figure out what was going on. Yes, the $1909 was the money that was cleared from the business . . . actually it wasn’t cleared as I had debt payments to make out of that. Yes, daunting. I have rearranged debt structure, so servicing is a little less cumbersome, and I take home to pay my personal bills close to $2000 a month. When we get to gross sales of $250,000 a year, that will increase and the % numbers will be lots more efficient. It’s an economy of scale thing that someone mentioned a year ago, maybe it was paul7979.

 

[pjcampbell]

Is there some sort of idiots guide on this site? A spreadsheet that might tell me all the million little details I’d never remember?