Costs
£21,000left after costs
Wages take 39% of turnover and ingredients 36%, both within the normal range for a bakery. There's no saving to make here; profit has to come from price.
Where you stand
What we make of it
The trade guide puts the limit for wages at 40% and for ingredients at 40%. You are inside both, and cutting either would hurt the shop before it helped the margin. Profit margin is 2.8%: £21,000 on £742,000. One bad month would take most of it.
What it rests on
- Revenue: £742,000
- Gross margin: 64%
- Fixed costs: £454,000
- Wages a year: £286,000
Next
Nothing to do yet. We keep watching it, and we'll tell you the moment it moves.