Glossary
Fixed cost
A fixed cost is an amount you pay at the same level each month however much you sell, such as rent.
What it means for a shop owner
It tells you how much you must sell to cover the minimum. As sales grow, this cost is spread over more pieces, so each piece carries less. Do not take on a new fixed cost before you are sure of steady income.
A worked example
Rent is 1,000 a month. Selling 500 pieces puts rent at 2 per piece, and selling 1,000 puts it at 1 per piece.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes