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Go Buy a Book in the East Village
The lovely St. Mark's Bookshop is hoping for a $5000 reduction each month in their $20,000 monthly rent—and they expect to perhaps hear from their landlord, Cooper Union, today.
A reduction of $5000 a month! Why, that's all of 250 purchases at a (very low) estimated average purchase price per customer of $20. (That would be eight customers a day.) I would describe that as a harrowing view into the store's finances and costs.
you're of course calculating their gross revenue, not their gross margin. Assuming a 40% average markup and a $20 purchase, they'd need around 420 more customers/month to cover the rent, 14/day. Which seems like a reasonable number to have permanently lost in a recession and a faltering business model.
@gregorg The business model is toast. Meaning they need to start serving “continental breakfast” with each purchase. An extra pack of jam with 5 or more purchases.
They should do it the (Bank of America)n way and lay off people. 5000/m is like, what? Two clerks?
The clerks get paid?
@Rod T They already laid off all the part-time employees and reduced the full-timers to twenty-five hours.
Kickstarter.