Increase Your Profits in Three Easy Steps: Part 2 – Increase Your Mark-up
Mark-up is an important part of profitability. Struggling to pay your bills can be directly related to not achieving the right mark-up.
The average million dollar store needs an 80% mark-up to break even.
With astute buying and confidence you can achieve the right mark-up that will give you good return on your investment for the time and effort you put into your business.
When you incur debt you plan to pay for it with profits. When there is not enough profit to pay your commitments, it puts an enormous strain on cash flow and your life.
For example, if a million dollar store with a mark-up of 100% increases that mark-up to 120%, there is potential for an additional $100,000 in net profit. Increasing your mark-up does not cost you sales – it increases sales.
Sales Mark-up Cost Of Sales Gross Profit Net Profit
$1,000,000 100% $500,000 $500,000 $100,000
$1,100,000 120% $500,000 $600,000 $200,000
At Focus, we can give you the confidence to make excellent profit out of your fine jewelry store. A million dollar store should produce $300,000 of net profit.