What would you expect avr GP would be for a small/medium size chain computer store?

[Locut0s]

Actually we are almost a whole saler as a LOT of our business comes directly off our web site so perhaps a better comparision would be something like Tiger Direct. Although we do have 6 retail store locations. I just noticed that last month my GP was 10%.

Average gross profit is what I mean.

Ooop no I mean Gross Margin, See Prof John below.

 

[HardcoreRobot]

what is avr gp

 

[DingDingDao]

what is avr gp

Audio Video Review Grand Prix

 

[rcpratt]

Average gross profit, I'm guessing? You might want to actually say that, people that haven't worked sales aren't going to have a clue what you're talking about. Like me.

 

[guyver01]

Well.. you only have 10% profit because you dont want to make deals with big consumers to purchase laptops in bulk.


Enjoy your failed business.

 

[rcpratt]

Also, how can the gross profit be %. Wouldn't it be $.

 

[Locut0s]

Well.. you only have 10% profit because you dont want to make deals with big consumers to purchase laptops in bulk.


Enjoy your failed business.

You don't put as much effort into your tolling as you used too. Why ?

 

[sandorski]

10% of a General Practitioner? How do you get Health Care? [/lame joke]



I'm doing my part to keep your Business Profitable. Just waiting for my new Monitor to show up.

 

[Locut0s]

Also, how can the gross profit be %. Wouldn't it be $.

A percentage of total sales. So 10 percent means you made 10 bucks off selling 100 dollars worth of stuff. Or 100 dollars if you sold a thousand.

 

[dud]

Huh?

 

[Locut0s]

10% of a General Practitioner? How do you get Health Care? [/lame joke]



I'm doing my part to keep your Business Profitable. Just waiting for my new Monitor to show up.

Which monitor did you get ?

 

[GuitarDaddy]

Assuming you are talking about gross profit on sales of computers and components, with gross profit defined as total sales - total cost of sales not including overhead ie rent, utils, salaries, supplies, etc...., then 10% is pretty low unless your doing incredible volume.

But its all relative, if you have a high volume of sales of fairly expensive items then 10% GP is great. Bottom line is if 10% GP generates enough cash to cover operating expenses and provide the owners a comfortable income then alls good.

 

[sandorski]

which monitor did you get ?

asus ms238h 23in

 

[ProfJohn]

A Target or CVS has a gross profit of around 10% of sales, but that depends greatly on locations, rent and sales volume.

Best Buy has a some what smaller percentage, but they have higher sales per store so its hard to compare.

For small local places... who knows.

There should be no set number. You have to make enough to cover your expenses, which are mostly fixed. If you are selling $10k a week then your GP needs to be higher than if you are selling $20k a week.

 

[ProfJohn]

BTW retail 101

gross margin = difference between what you pay for an item and what you sell it for.
gross profit = amount of money left over after you pay ALL your expenses. (rent, power, payroll etc etc)

They are very different numbers and I am wonder if you are thinking gross margin in the OP.

 

[Locut0s]

BTW retail 101

gross margin = difference between what you pay for an item and what you sell it for.
gross profit = amount of money left over after you pay ALL your expenses. (rent, power, payroll etc etc)

They are very different numbers and I am wonder if you are thinking gross margin in the OP.

Huh thanks. Yeah I mean Gross Margin then

 

[guyver01]

You don't put as much effort into your tolling as you used too. Why ?

I have a permanent infraction. don't want to hit the mark that puts me over... so my Troll-fu has become weak.

 

[sandorski]

I have a permanent infraction. don't want to hit the mark that puts me over... so my Troll-fu has become weak.

Support the other thread. When the Mods are overthrown, you might get a clean Record!! :O:O :ninja:

 

[Locut0s]

asus ms238h 23in

Asus actually makes decent monitors. But eww I can't stand the non adjustability of that line.

 

[sandorski]

Asus actually makes decent monitors. But eww I can't stand the non adjustability of that line.

Ya, I'm hoping it's reasonably tilted. Straight up/down is approx how my current Monitor is, so I think the 10 degrees should be alright.