>Local parts stores operate at gross margins of 20% to 40%. Retail
>customers pay the higher mark-up. A local store provides local jobs and
>has access to many parts when needed in an emergency. Add up all the
>fixed costs you can imagine for a local store (rent, utilities, salaries,
>local taxes) and divide them by the average gross margin percentage - say
>30%. If total expenses are $8,000 then the store must have Total Sales
>of ($8000/.3) $$26,667 just to break even. In addition, the average
>investment in parts on the shelf can easily be $20,000, so the store
>owner is taking a significant financial risk. And profit is, after all,
>payment for risk. Buy some more from this guy. He needs you.
>
>Charles E. Edwards, CPA
>Virginia Beach, VA
>cedwards@pinn.net
>
Now charles, at the prices this guy is charging, he is definetly going to need
all the dumb customers he
can get. But you can bet your butt it won't me me!!!!!
Dick :>)
Vintage Parts & Products
Have MG will travel
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