One of our staff members (Nid, take a bow) has created an Excel spread sheet to track monthy and/or annual profit to overhead (what's left over after direct fees and expenses as a result of wire service activity.)
You will need to download the form and insert the following data:
a) Enter the number of months of data you'll use on this specific report. Months can be entered individually or can be grouped together.
Incoming Orders
Obtain the information from your POS report (best) or WS statement.
b) Enter the quantity of orders received.
c) Enter total dollars of orders filled.
Variable Costs
d) Enter your cost of goods sold. The sheet defaults to 28%. Use your actual number by expressing it with a decimal point i.e. .35 for 35%. The US average has historically been reported to be 30% for fresh arrangements.
e) Enter the percentage of payroll from your shop's P&L. Be sure to include payroll taxes and benefits to establish your actual payroll cost. The sheet defaults to 25%. (Express numbers with a decimal point.)
f) Enter commissions and fees given. The sheet defualts to 27%. Enter the appropriate higher number if you have been hit with an 'unequal sending percentage.' (Express numbers in dollars.)
g) Enter your WS "receiving fee" per order. TF is $1.00. FTD is $.95.
h) Enter your cost per delivery in a dollar amount excluding driver salaries. (They are included in item e). Expenses include vehicle cost(per amortization schedule), maintainence and insurance. (Express numbers in dollars.)
Membership Expenses
i) Enter monthly dues. Note: This number will be divided in half with 50% moving over to the Outgoing Order column automatically. (Be sure to add any 'unequal sending fees' if applicable.)
j) Enter monthy technology interface fee. This number will be divided in half with 50% moving over to the Outgoing Order column automatically.
k) Enter monthy Wire Service Directory and ASB advertising. Do Not Include co-op or other consumer ads. Enter 0 if you do not use this type of advertising.
Outgoing Orders
l) Enter the quantity of orders sent.
m) Enter the gross amount of dollars transferred to other shops for fulfillment.
n) Enter commission earned. Defaults to 20%
o) Enter rebate level per order.
p) Enter your shop's outgoing relay service charge per order.
Look at the numbers:
Net Profit (Loss) Wire Svc will tell you how much of each type of order is left over to cover overhead (rent, utilities, advertising, insurance, office expenses, tec...) on a per-order basis - both incoming and outgoing.
To see the effect of a simple 1% lowering of COGS or payroll, reduce item d) or e) by 1.
Hope this exercise provides some insight into your store's finances. Note: The results will not be *exact* since there's no easy ways to enter purchase discounts or attribute advertising for outgoing orders.
Please post all comments and/or suggests for improvement of the form.
I consider myself pretty knowledgeable about flower shop financials and was somewhat surprised about our own store's numbers.
You will need to download the form and insert the following data:
a) Enter the number of months of data you'll use on this specific report. Months can be entered individually or can be grouped together.
Incoming Orders
Obtain the information from your POS report (best) or WS statement.
b) Enter the quantity of orders received.
c) Enter total dollars of orders filled.
Variable Costs
d) Enter your cost of goods sold. The sheet defaults to 28%. Use your actual number by expressing it with a decimal point i.e. .35 for 35%. The US average has historically been reported to be 30% for fresh arrangements.
e) Enter the percentage of payroll from your shop's P&L. Be sure to include payroll taxes and benefits to establish your actual payroll cost. The sheet defaults to 25%. (Express numbers with a decimal point.)
f) Enter commissions and fees given. The sheet defualts to 27%. Enter the appropriate higher number if you have been hit with an 'unequal sending percentage.' (Express numbers in dollars.)
g) Enter your WS "receiving fee" per order. TF is $1.00. FTD is $.95.
h) Enter your cost per delivery in a dollar amount excluding driver salaries. (They are included in item e). Expenses include vehicle cost(per amortization schedule), maintainence and insurance. (Express numbers in dollars.)
Membership Expenses
i) Enter monthly dues. Note: This number will be divided in half with 50% moving over to the Outgoing Order column automatically. (Be sure to add any 'unequal sending fees' if applicable.)
j) Enter monthy technology interface fee. This number will be divided in half with 50% moving over to the Outgoing Order column automatically.
k) Enter monthy Wire Service Directory and ASB advertising. Do Not Include co-op or other consumer ads. Enter 0 if you do not use this type of advertising.
Outgoing Orders
l) Enter the quantity of orders sent.
m) Enter the gross amount of dollars transferred to other shops for fulfillment.
n) Enter commission earned. Defaults to 20%
o) Enter rebate level per order.
p) Enter your shop's outgoing relay service charge per order.
Look at the numbers:
Net Profit (Loss) Wire Svc will tell you how much of each type of order is left over to cover overhead (rent, utilities, advertising, insurance, office expenses, tec...) on a per-order basis - both incoming and outgoing.
To see the effect of a simple 1% lowering of COGS or payroll, reduce item d) or e) by 1.
Hope this exercise provides some insight into your store's finances. Note: The results will not be *exact* since there's no easy ways to enter purchase discounts or attribute advertising for outgoing orders.
Please post all comments and/or suggests for improvement of the form.
I consider myself pretty knowledgeable about flower shop financials and was somewhat surprised about our own store's numbers.
