I got a rough estimate of rent expense from Mark when he was explaining the places we are going to go see next week. Three of the places around Camillus could be as low as $3,000 a month compared to Township 5 which would be more like $6,000 a month. Sounds crazy right? Twice the rent for a hot location!?!?! That can’t possibly be worth it. But if you looked at all of the projected expenses for the shop each month you would see that the rent is not the main driver. As with any shop the inventory is the largest expense. So here is what it breaks down to:
Assuming each sale is $50 a pop:
I would need 30 sales a day to hit my target income with rent at $3,000
I would need 38 sales a day to hit my target income with rent at $6,000
So here is the survey: Do you think it be worth it to pay the extra rent for Township 5 in hopes of getting more than 8 additional sales A DAY as a result of location alone?