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Shop Profits


#1

Thought you might be interested in the outcome of some stores I
help. I visited this store in August, set them up with higher prices,
trained the staff and setup QuickBooks like I have been posting. I
received their year end QuickBooks reports today, which I started in
only August. This is a portion of the letter I just faxed this
jeweler. All facts are true. This is how many stores can look:

August I believe, we started a new QuickBooks file. So Since August
you’ve done about $533,000 in total sales.

$300,664 was in product sales (63% of sales)

$173,517 was in shop sales (37% of sales).

Here’s a breakdown for you of gross profit in dollars and
percentages:

Type Sales COG’s Gross Profit $$ Gross profit%

Product $300,664 $163,916 $136,748 46%

Shop $173,517 $54,512 $119,005 68%

The shop makes 50% more gross profit than the showroom. Also did you
notice that the showroom did $127,147 in sales than the shop but
only made $17,743 more profit dollars. That’s a lot of work for
$17,000!

Your net profit for the store is $72,115.00 and that’s 13.5%. That’s
an improvement over what I saw when I came there in August and it
comes from the extra money the shop is now making compared to what it
used to.

Keep up the good work
Regards
David S. Geller
www.jewelerprofit.com