SOWPub Small Business Forums  
 

Click Here to see the latest posts!

Ask any questions related to business / entrepreneurship / money-making / life
or share your success stories (and educational "failures")...

Sign up for the Hidden Business Ideas Letter Free edition, and receive a free report straight to your inbox: "Idea that works in a pandemic: Ordinary housewife makes $50,000 a month in her spare time, using a simple idea - and her driveway..."

NO BLATANT ADS PLEASE
Also, please no insults or personal attacks.
Feel free to link to your web site though at the end of your posts.

Stay up to date! Get email notifications or
get "new thread" feeds here

 

Go Back   SOWPub Small Business Forums > Main Category > SOWPub Business Forum
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

SOWPub Business Forum Seeds of Wisdom Forum

 
 
Thread Tools Display Modes
Prev Previous Post   Next Post Next
  #7  
Old October 12, 2011, 07:47 PM
sandalwood
 
Posts: n/a
Default Re: I don't understand business...

Quote:
Originally Posted by Ankesh View Post
Consider rent as advertising expense. And the calculations will fit.

I have a friend who gets an average of 10-12 people to visit his shop per day. Thats less than 2 people per hour he remains open. His shop is in one of the posher locations in Mumbai - very high rent. And yet he makes money. (I think it was 50% of all who enters his shop ends up buying from him.)

The store itself does not make his enterprise wildly profitable. But the store gives him an avenue to create a mailing list of buyers. And he makes a lot of money on repeat sales - via specialty exhibitions and sales. Many of these sales transactions don't happen in his shop - but they happen because of his shop.

Its the same direct marketing model.
Good audience.
Good product.
Good pricing.
Good advertising.
Good backend.

You need to have all 5 in place.

No idea about cheese shops. But I had heard that the Jaguar showroom that opened recently near my home needs to sell less than 2 cars a month to remain profitable.

With the right product-pricing mix, you can remain profitable even with very very low foot fall.

Ankesh,

I like what you wrote with one exception. Rent is an item, at least for tax purposes, that has its own line on the tax form. A person can consider rent an advertising expense but has to, again tax wise, report it as such. To me, thinking of it as advertising could make sense but the reality of it says not to juggle the mind w/exotic thinking especially with a fixed expense. Used your creative thinking talents for ways to build a mailing list or increasing foot traffic, etc.

Just my 2¢

tk
Reply With Quote
 


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Other recent posts on the forum...


Seeds of Wisdom Publishing (front page) | Seeds of Wisdom Business forum | Seeds of Wisdom Original Business Forum (Archive) | Hidden Unusual Business Ideas Newsletter | Hotsheet Profits | Persuade via Remote Influence | Affia Band | The Entrepreneur's Hotsheet | The SeedZine (Entrepreneurial Ezine)

Get the report on Harvey Brody's Answers to a Question-Oriented-Person


All times are GMT -4. The time now is 07:20 PM.


Powered by vBulletin Version 3.6.0
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.