|
Targeted Backdoor Margin Worksheet |
|
|
All numbers are represented as a percent of sales |
SAMPLE
(Typical Store) |
|
DESIRED Bottom Line PRE-TAX Profit |
|
|
3.5% |
|
EXPENSES |
|
|
|
|
Payroll |
+ |
|
21% |
Fully burdened payroll including all hours worked, taxes matched, Workers comp, benefits |
|
Occupancy |
+ |
|
6% |
Rent, Taxes, Insurance and Maintenance
(even if you own) |
|
All “other” |
+ |
|
11% |
Everything else except payroll, occupancy and principle on debt. No depreciation or amortization. |
|
FINAL MARGIN |
= |
|
41.5% |
|
|
Shrink |
+ |
|
2% |
All theft, clerical errors, and other unaccounted for inventory. |
|
Freight |
+ |
|
1.5% |
Delivery costs associated with inventory. |
|
Markdowns |
+ |
|
3% |
Customer discounts, promotions, damaged merchandise |
|
TARGETED BACK DOOR MARGIN |
= |
|
48% |
| |
