Glossary
Overhead
Overhead is what you pay to keep the shop open, such as rent, power and wages, whether you sell or not.
What it means for a shop owner
It does not belong to one item, so it stays out of the cost per piece, yet your margin must cover it. Add it up monthly and divide by sales to see its share. If the share climbs, look for a line you can cut.
A worked example
Rent of 800, power of 200 and wages of 1,500 make 2,500 a month. With sales of 10,000 that is 25 percent.
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