Page 17 - LPG August 2018 Newsletter
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Luxury Products Group The Luxury Report August 2018
on Sundays. If you consider when your target consumer shops, this already is fundamentally wrong. Weekends are when those consumers have time off. Retail showrooms must have retail hours, and retail staf ng. Measure traf c and staff accordingly.
Now let’s assume the showroom employee writes $60,000 in business per month, at 35% pro t. That’s usually enough to keep the wolves away and keep things running with $21,000
in gross pro t. When you take away the cost
of rent, payroll, lighting, HVAC, upkeep, etc.,
that one employee is just barely covering
the overhead of the showroom. I encourage
you as the owner to use you own gures, and plug in your own payroll numbers, bene ts
and overhead to get a clearer view of your showroom’s nancial situation. Yes, those
sales keep the doors open and satis es some customers. But it will never allow the showroom to progress, because that one employee is maxed out and it gives the perception is that the showroom is running at full capacity. At
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