3 ms·
400 percent mark up, yes, but you have to meet volume targets if you have to break even given rent and other fixed costs. Let's say, you pay $5000 rent, another
by shas3 11y ago
400 percent mark up, yes, but you have to meet volume targets if you have to break even given rent and other fixed costs. Let's say, you pay $5000 rent, another $200 a month for equipment like espresso machines, around $600 for utilities, another $600 for supplies, then you need to sell, 6400/0.16 = 40,000 cups of coffee. That is around a thousand per day. Let's relax the constraints and say, expenses are between $1000-$6400/month between 200-1000 coffee cups a day. That doesn't seem like a very easy target to achieve.
- jasonkester 11y agoYou accidentally sold your coffee for $0.16 a cup in your example. Try marking it up to $4.00 and your same math leads you to a nice easy profit selling 50 cups per day.