Build in customer control and customer satisfaction, Ensure Quality, Position for Scale.
Start a countertop business Phase #2
Hire Installers - You need 2 people - 1 experienced and one not. The experienced person needs a second set of hands to move and place the countertop material. The reason hiring installers is the next step is that you want to be able to control the customer experience and manage customer satisfaction.
Hire a Receptionist/Office Manager - one Person- This person will deal with all planning and scheduling related issues. All call into the business will go through this person except direct sales calls will ring to you first and then forward to the office number if you are not reachable. Top reasons small businesses fail is poor organization and poor customer service.
Based on this infrastructure you can now scale to 40 installs per month. You are in control of the customer experience and are in control of your brand... Nice Place to be!
We will make some assumptions for this revenue model
- The target sales price will be $40/SF all in
- The average kitchen is 50 SF
- Fabrication (out sourced) costs $12/sf
- Employees Installation costs (Installers and reception)
- Material costs start $8/sf
Hard costs are $20/SF leaving $20/SF for employees , profit and marketing
- The average sales invoice is $2000
- of this $1000 went to pay for subs and material
- leaving $1000 for employees, profit and marketing.
Example: Your team has the potential to sell and manage 40 jobs per month.
- Sales = $80,000
- Subs & material = $40,000
- Employees (tough to tie to /SF) = $7,500
- Net revenue, employees & marketing = 22,500
Estimated marketing costs of 7% of sales ($5600) leaves you with a net profit of $16,900 per month. Not to shabby!
$960,000 in sales
Potential annual net: $202,800
-- from this you will have insurance, equipment, retail space, and additional potential costs based on how you plan your infrastructure.
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