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Message: <blockquote data-quote="audiolife" data-source="post: 3627815" data-attributes="member: 541383">lol this is funny,if noone sells product how much will you have to install? what kind of support will you have to do installs (remember not every car you get to work on will be as easy as a 96 ford ranger)? you would have to charge enough to cover your costs like tools and insurance.why does a grocery store make it on 3%? (i ran a deli and meat department my first 5 years out of high school lol) simple volume! people need food more people buy from grocery stores daily-weekly-monthly- than car audio shops. your percent margin is also dependant on volume not on a straight percentage. smaller stores tend to want a higher margin than 3%.3% might be good after you consider spoilage losses, items breaking and theft. to put it in perspective a slow day at a small grocery store like i worked at is 15 grand. net profit for the day at 3% =450 bucks. divide that by 5 employees at an average of 8 dollars an hour (some people make more than that by the way and it isnt figuring insurance or social security) over 13 hours the store is open. you have lost money just in labor (not counting building costs, heat, power, water, cost of bags and garbage disposal)lol. an average day was closer to 25k at 5% fridays though were always 5-10 times that in sales.on a yearly basis the average person probably spends more on food in one month than they do car audio (unless you still live with mom and dad). reason i say that is simply due to the fact most people are not car audio buffs.now when i was a senior installer at BB we sold about 2500-3500 a day in car audio. with 3+ employees working a day in sales-at least ,3 installers (install bay takes in 500). if we made 10% we wouldnt make money. by the time  you pay employees, figure in floor space rent, sup pay, cost of displays (like they have is not cheap) and other costs (like advertising car audio) they would lose money.costs of running a shop, rent-$1000-$2600 easy, a display (if it is decent and new) $40k, and product to put in those displays $5k plus opening orders or hell lets just go with a distributor so we dont need $20k  to just carry pioneer,sony or kenwood direct. open with 30k total in product. some things will sell faster than others so some of your investment will be some dead weight until it moves. so at $2000ish in rent, 300ish in utilities, 200ish for insurance for the building, 200ish for car insurance, 70ish for the phone, 300 a month to advertise (that is very modest considering a monthly radio spot ads can cost thousands) you need to make over $3000 a month before ANYONE gets paid (not counting any loans for product, displays or tools). if you have 5 employees lets say you pay them 400 each a week now all the sudden you need to make $11,000 a month in profit before you  get 1 cent. so now lets say you sold what best buy does at 3500 a day. at 10% profit you would make 10,500 a month so not only would you have a shitty shop but you would be losing 500 a month and that is at a minimum.//content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif</blockquote>

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