List of costs for running a retail store

Discussion in 'Retail' started by burtonj, Oct 20, 2013.

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  1. burtonj

    burtonj UKBF Newcomer Free Member

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    I am trying to come up with a comprehensive list of costs to give to a friend who is launching a similar retail business. They have all come from memory for a shop I used to work at.

    All listed are yearly costings based on 5 full time and 2 part time staff.

    Can anyone add to any here or suggest any I may have missed?

    Rent £30k
    Business Rates £15k
    Wages £75k
    Employer National Insurance £5k
    Electricity £1.5k
    Insurance(Public and Premises) £1k
    Water £0.3k
    Telecoms (line rental, calls, broadband) £1k
    Bin/Cardboard Collection £0.35k
    Alarm System(includes security tagging/barrier) £1k
    Windows(done weekly) £0.4k
    Advertising(local paper 3 times a year) £0.6k
    General Supplies/Petty Cash £0.4k
    CC Commision(based on £500k turnover) £6.25k
    Stationary £0.2k
    Fuel Costs £1k
    Carrier Bags £0.4k
    Banking Fees & Overdraft £0.6k
    Repairs to shop/maintence £0.5k
    PRS License £0.3k
    Lighting £0.25k
    PAT Electrical testing £0.2k
    EPOS Software Rental £0.35k

    Any more??
     
    Posted: Oct 20, 2013 By: burtonj Member since: Oct 20, 2013
    #1
  2. Phishfood

    Phishfood UKBF Newcomer Free Member

    202 34
    employers liability insurance? or is that included in Insurance(public and premises)
     
    Posted: Oct 20, 2013 By: Phishfood Member since: Jan 22, 2013
    #2
  3. midnight_caller2002

    midnight_caller2002 UKBF Contributor Free Member

    48 2
    What about PDQ terminal rental... I know you have listed cc commission, also banking fees, can be high if paying a lot of cheques or cash in. The biggest cost - stock..... Along with vat.
     
    Posted: Oct 21, 2013 By: midnight_caller2002 Member since: Nov 23, 2009
    #3
  4. PrestonLad

    PrestonLad UKBF Newcomer Free Member

    647 278
    Some possibles:

    75K wage bill seems low for 5 FT + 2 PT staff. Must be absolute bare min pay... and you must be expecting them to cover each others sickness and holidays at no extra cost.

    Stock wastage costs - to cover shoplifting and damage.

    Does any special shop equipment need servicing?

    If it's a full repairing & insuring lease, then it's prudent to budget an amount for annual repairs.

    If you're going to the level of detail of PAT testing.... then throw in your fire extinguishers too.

    Accountancy fees (and possibly accountancy or other software rental)

    If you want a website... costs.

    Any costs associated with purchasing stock - other than simple cost of stock? Depends, of course.
     
    Posted: Oct 21, 2013 By: PrestonLad Member since: May 3, 2012
    #4
  5. Root 66 Woodshop

    Root 66 Woodshop UKBF Big Shot Free Member

    5,139 1,389
    Alarm System(includes security tagging/barrier)

    If you know someone who can supply & install an alarm system and a security tagging system for £1000 (even if it's based upon £1000 per year) then personally I'd be checking their credentials.

    Repairs to shop/maintence £0.5k

    A little ambiguous don't you think? What happens if there's a fire... the tenant is responsible for the repairs and general maintenance.

    PAT Electrical testing £0.2k

    You can reduce that cost by employing someone who is competent enough to do your own PAT testing.

    You've also missed

    Fire Alarm Installation and maintenance.

    Depending on the size of the building, let's say a small retail shop would cost £4000 + then you've got your maintenance contract on top of that as a yearly basis.
     
    Posted: Oct 21, 2013 By: Root 66 Woodshop Member since: Nov 22, 2011
    #5
  6. dineshkumartec

    dineshkumartec UKBF Newcomer Free Member

    8 0
    You included all, Expect with your retail customer maintenance and sales management.

    How to Maintenance the Exist & New Customer details? So please concentrate that point or would use Retail POS Management Software. It is really Helpful to increase your revenue.
     
    Posted: Oct 24, 2013 By: dineshkumartec Member since: Oct 24, 2013
    #6
  7. herewegoagain.

    herewegoagain. UKBF Newcomer Free Member

    586 242
    Don't forget to factor in the costs of a decent psychotherapist... after having to deal with all of the 'something for nothings', the thieves, the time-wasters, the 'numpties', the general 'scroats' and the good people out there who think they can run it better than you can...

    Had a rough day yesterday at the shop... can you tell?
     
    Last edited: Oct 25, 2013
    Posted: Oct 25, 2013 By: herewegoagain. Member since: Jul 4, 2012
    #7
  8. PrestonLad

    PrestonLad UKBF Newcomer Free Member

    647 278
    BurtonJ?

    .... Hello-ooooh.


     
    Last edited: Oct 28, 2013
    Posted: Oct 28, 2013 By: PrestonLad Member since: May 3, 2012
    #8
  9. Philip Hoyle

    Philip Hoyle UKBF Ace Free Member

    2,255 1,093
    Not sure you can heat and light a shop of that size for £1500 pa

    Also, the water rates seem very low - I pay more than that for a tiny office - but I suppose it may just cover metered water usage if your waste water & drainage is covered under the lease.

    Some other headings look very light, such as bank charges, waste disposal,security, telephony, stationery and alarm/shop maintenance.

    What about subscriptions, PRS licence for music, staff training, uniforms?
     
    Last edited: Oct 28, 2013
    Posted: Oct 28, 2013 By: Philip Hoyle Member since: Apr 3, 2007
    #9
  10. Talay

    Talay UKBF Big Shot Free Member

    3,895 844
    If 5 full time plus 2 part time equals 6 full time then at 40 x 6 x 6.31 x 52 = £79k.

    Not sure how you can have all indians and no chiefs ? Surely someone has to be paid more than minimum wage ?

    I think you are well short on this.

    Also, what about holiday cover ? sickness ? etc.

    Another ten plus grand for that.

    Maybe need to add another 50% to the staffing cost.
     
    Posted: Oct 28, 2013 By: Talay Member since: Mar 12, 2012
    #10
  11. harper101

    harper101 UKBF Newcomer Free Member

    54 2
    Hi burtonj

    I think they have mention here what are the other costs needed for a retail business. Anyway, how was the retail store going on? :cool:

    All I can say now is just to make sure to have workplace safety supplies and equipment. That's it and may all be well for your business.;)
     
    Posted: Jan 9, 2014 By: harper101 Member since: Jan 7, 2014
    #11
  12. and_next

    and_next UKBF Newcomer Free Member

    12 0
     
    Last edited: Jan 24, 2014
    Posted: Jan 24, 2014 By: and_next Member since: Jan 23, 2014
    #12
  13. and_next

    and_next UKBF Newcomer Free Member

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    Waste Disposal......do the council not take care of this?
     
    Posted: Jan 25, 2014 By: and_next Member since: Jan 23, 2014
    #13
  14. Mayor

    Mayor UKBF Regular Free Member

    295 95

    Yes.

    For a fee !
     
    Posted: Jan 25, 2014 By: Mayor Member since: Feb 3, 2009
    #14
  15. and_next

    and_next UKBF Newcomer Free Member

    12 0
    Is the fee not part of the rates?
     
    Posted: Jan 25, 2014 By: and_next Member since: Jan 23, 2014
    #15
  16. kelvin1950

    kelvin1950 UKBF Ace Free Member

    1,226 398
    Not part of the business rates, no. Only residential properties get free rubbish collection. Businesses pay. That said, if you shop around it needn't be expensive but it's an outgoing all the same.
     
    Posted: Jan 25, 2014 By: kelvin1950 Member since: Jul 19, 2011
    #16
  17. and_next

    and_next UKBF Newcomer Free Member

    12 0
    Residential rubbish collection is inlcuded as part of the council tax you mean :) Thanks, ill inlcude to my list and shop around
     
    Posted: Jan 25, 2014 By: and_next Member since: Jan 23, 2014
    #17
  18. 10032012

    10032012 UKBF Newcomer Free Member

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    Why would you include cost of sales such as card processing fees?
     
    Posted: Jan 25, 2014 By: 10032012 Member since: Mar 10, 2012
    #18
  19. Mayor

    Mayor UKBF Regular Free Member

    295 95
    Why not ? It is a cost, after all !

    £500k turnover on a new start retail is optimistic though...?
     
    Posted: Jan 25, 2014 By: Mayor Member since: Feb 3, 2009
    #19
  20. 10032012

    10032012 UKBF Newcomer Free Member

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    @Mayor As its a cost you only have to worry about when you actually make a sale. only if not paid in cash! It is not an overhead. You could argue that carrier bags is similar, however, you need them before you make a sale; card processing fees you wont ever have to worry about until you make money. Assuming you have a margin and selling products for a profit, it simply comes out of the items profit.

    £500k is about right to be aiming at. I don't know of any convenient stores that do not make this. I cannot really comment as I don't know what sort of retail shop this is, the size of it and whether the 6 FTE staff equates to around 4 a day.

    £500k turnover you are looking at roughly around £2000 in sales per day. That is a tall order.
     
    Posted: Jan 26, 2014 By: 10032012 Member since: Mar 10, 2012
    #20
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