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|Here I sit behind a computer investigating many different topics. Even though Politics and what they are doing is a BIG... no MASSIVE topic that everyone should be reading. After all, what the politicions are doing effects everything in your life. It might not seem so, but why is a cup of coffee so high in price in a coffee shop? Simply, the government has forced Minimum Wage to grow, added more taxes to businesses and for the businesses to survive, they pass it all on the person paying for it and enjoying a nice hot expensive coffee.|
Since I do not drink coffee, instead I drink Tea. And Depending on my mode, I have many flavors to choose from, and I still pay the same price as Coffee. Technically, Coffee is a sort of Tea, and I won't hold it against those that think that Coffee is not! I just enjoy going for a social meeting and drink coffee or tea. To make a copy of Tea, loose or bag, is surprisingly low. The cost of tea seems to be a challenge to find on NoFrills and Sobeys websites. I guess this is a marvolous move to get people to get of the house for a bit... unless you sign up with them to get the ability to purchase the product on-line. I find this a waste of a good Advertisment thrown down the tubes.
Back to once again look on the price of Tea! I picked a good, nice tea from Tetley. I find it nice to drink and it is a Green Tea, Naturally Decaffeinated. If you where purchasing off the shelf of a Grocery Store, I would not be surprise if you would pay $4.80. That is if you steeped the Tea at Home or took it over to a friends place. Now, instead of having Tea or Coffee at home, you go to a nice Coffee Shop. Relaxing atmospher, very well cleaned, and you get your your drinks. Would you believe that the cost of a cup of Tea or Coffee is $1.80. That is over 24 times higher then you paid for a cup of Tea or Coffee at your home! How did I figure this out... simple, that $4.80 package of Tea that you purchased, has 24 bags of tea in it. So, I figure that you are paying close to $0.20 per bag... yep, 20 frigen cents!
Will this be where I say stay home and save money! Nope, and it isn't about the money that I say Nope to! People need to socialize to get information passed from one person to another. Sitting down for Tea and/or Coffee allows you to talk in purson and see thier personal reactions to what you are talking about! Behind the Computer, you loose out on the reactions of None Verbal language.
Now we have a situation here... and it goes across every product in every store... the price of what the shoppers are stuck with when they buy things, especially from Brick and Motor stores!
The people who put their money and time investing in their businesses have so much information to answer on a daily routen. What to purchase and from what location starts out the day. Researching information out there, and making decisions on Facts that are given to him. In Alberta, to be able to get a jump on it, you need to know your distributors hours of operation, and since most are found on the east section of North America, you would need to be ready to do make your calls at 7am. If you managed to get information and lists made before you end up going to bed, then you get to sleep in the next day. If you did not make a direction and list of what needs to be ordered, then you need to wake up sooner so the phone calls can be done quicker or with more information that you request for.
And that is the start of the day for a Business Owner, even if you open at 9am or 4pm! Chances are, if you are opening your doors at 4pm, you may have a another source of income to live better off of, but then, your focus for you Investment is lessened. To get an order in, you have a window each day. miss that window, you now slow down the speed of goods coming into your business, so either you try so hard to work around the other job to create time for the background opperation for the Bussiness.
Then comes the sales when you are on the floor assisting customers! Then, when the store closes, the Business Owner now needs to finish the paperwork for the the day of operation, Sales, deliveries... just to name a few.
Even with all this work, Businesses need to continue to grow, or will die when what you are selling is no longer being purchased! Lot of hard work, and a good reason to hire people to assist you, taking the stress off of you shoulders.
And this comes with a VERY big price that the Investor and owner of the business has to make! How much money can he spare to have someone help him in the store. After all, even at minumim wage, One person working eight hours for a day costs him $108.80. This doesn't sound like much, but you aslo have to count CPP, EI, income tax and how much more paperwork that you now have to do. And that is the start of the caculation. For you to afford hiring this person, you MUST make a minimum sales of $241.77 at the moment, per day. You also have to cover Rent. Let's say you got lucky and your rent for the business in $1,000 per month. This turns out to be $32.88 per day. Now, to cover wage of one person and rent, now you have to make sales per day of $318.54. Starting to climb, and that is still the minor costs. You need a phone to communicate with your suppliers, add phone and Internet connection... price ranges 60/month all the way up to 135/month. Now we add that price going in to the cost, I would go with $135 price tag... even though you may be able to better, or cheaper... this will push the needed sales upto $350.07/day. Chances you will not hamper your sales with only cash sales, so you need to have a POS in your business, that when you do a sale, you can offer Debit or Credit for your customers to use.
As a new customer running a POS, your fees is: Debit - 15 cents per transaction, Credit - 3% of the transaction. This may not seem like much, but if every customer purchased with just Credit Cards.. now you are spending $10.06 to the banks for someone to use the card at your establishment. How do we cover that cost? Well, that turns into a very interesting set of calculations... but now, the sales needed for each day is $358.89. And you have to operate with a Business license, where I am located, that is $90.00 or better for the year. Let' use the $90, meaning even more ugly calculation needed... total for your sales requirment is now at: $358.90.
There are many other costs not calculated in, advertising, delivery costs and the Big one... the Business Owner's withdrawal for that person to live (food, sleeping quarters)... now, what shall we put for a withdrawl budget for the owner? Do we go high, like $80,000 per year? That means sales need to jump up a high cost of $860.60 per day.
This price level Does allow you to restock your product... But that is if it is a good day. What happens when sales are less, or not there? Then that means that the owner makes less, or has to pay from his own pocket. This is a Dangerous Risk, but a Business owner takes Risks every day, because they are betting that what ever they are selling will be purchased!
Two other issues that Owners have to really think of is, the hagglers and specials. Hagglers go into small businesses and try to get a better price, taking money out of the buisness, and the owner... but you do not see them going to BIG stores, like Wal-Mart to haggle a better deal! And about specials! Specials are given to customers at the expense of their own income! When a business purchases product, it is always the same price that the owner purchaes it whether he has it on regular price, or put a special on it!