How do I calculate the profits of the supermarket – platform
How do I calculate supermarket profits? It is necessary to calculate the value of profit and loss for any project, no matter how small or large it may seem, and the statistics resulting from that mathematical equation are useful in understanding the financial situation of the project and knowing whether it is moving on its right track or deviated from its path and entered into a spiral of loss and failure of the project, and the cause of the losses can be identified And solve the problem, as well as identifying the reasons for not achieving the expected level of the project. In this article, we explain how to calculate the profits of the supermarket.
Feasibility study of a supermarket project
During the process of studying the feasibility of a supermarket project, the owner of the project learns about the existing market situation with the volume of supply and demand competing for the project, and to identify the target segment, and certainly determine whether the market needs the project or not, and to identify the technical elements of the project such as the appropriate location, with a list of the most important The necessary supplies and equipment, and other fixed and variable costs, and the investor resorts to consulting offices to help study the feasibility of the project due to its importance.
The location and space of the supermarket project
The location is one of the most important factors that guarantee the success of the project, and many sites caused the failure of many projects, and even exposed them to many losses, the last of which was the closure of the shop and the cessation of commercial activity. There are many strategies on which the site is chosen and we explain them as follows:
- It is preferable to establish the project in a residential area, as it is characterized by a lot of traffic, such as the main streets, and next to metro stations, parking lots, and others.
- The shop is also chosen suitable in terms of area, not less than 40 meters, with the availability of electricity and water.
- There should be an empty space in front of the shop to display products and merchandise, especially in seasons when there is a lot of movement.
- Choose the store in an area that is not crowded with similar projects, and if there is another supermarket, it should be at least 50 meters away.
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The cost of the supermarket project
The project costs are estimated through the data and information given in the technical study, and based on the information shown in the marketing study. By managing the costs of a project, we mean a set of operations to ensure that the project is completed without deviating from the specified budget. We explain the following the cost of the supermarket project:
- Where the cost of the average capital required for the project is about 350,000 riyals, and this amount is not fixed and subject to the size of the place.
- The average supermarket rent is about 8,000 riyals.
- Also, the supermarket rent license is 100 riyals per square meter.
- Also, the cost of the goods ranges between 25,000-40,000 riyals.
- The cost of one refrigerator is about 3000 riyals or more.
- While the worker’s wage: ranges between 800-1200 riyals
How do I calculate supermarket profits?
Profits are the amount of commercial gain from a service, commercial, or industrial project. The concept of profit in commercial projects differs from that in industrial projects. The concept of profit in a single project is subject to several variables, the most important of which are the size of the project, the volume of sales, and operational costs. In general, the calculation of the percentage of profits The supermarket by calculating the imports with the deduction of the price of the goods and deducting the variable and fixed costs from the total imports.
- It is better, before starting the implementation of the project, to provide an accounting system to periodically measure profitability, organize financial operations, identify losses and solve obstacles with minimal damage before the project fails, and the dream of its owner has always been destroyed.
- Note that the percentage of supermarket profits = store revenue – (the sum of the purchase value of sold goods + workers’ wages + electricity and water bills and taxes).
- Bearing in mind when measuring the percentage of supermarket profits, a distinction must be made between gross profit and net profit.
- Gross profit (total revenue) = selling price – buying price.
- While net profit = total revenue – total expenses.
- If the supermarket this month generated revenues of $20,000 and the total expenses for this month were $15,000, then the net profit would be $5,000.
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Tips to increase supermarket profits
If you do not have a clear strategy and vision for your project and a method for managing it, then you are not fit to go through the professional and practical experience. When talking to successful entrepreneurs, they are fully aware of all the small and large details related to their projects, such as the behavior of suppliers and customers and their expectations, as well as the method of operation and management of operations with a vision. Regarding negative scenarios and how they can be reduced, the following are tips to increase supermarket profits:
- Choosing the right strategic location is one of the success factors.
- As well as studying the market and knowing the products and prices with the difference between the quantity of demand and supply.
- Marketing plan for the project, publicity and advertising through available and innovative means.
- Designing the shop from the inside and placing the products in the supermarket in a distinctive way with ease of eating it.
- Planning and managing the workforce through the number and time periods, as this constitutes a high return on the store.
- Providing special offers and discounts in the event of purchasing a specific quantity without causing harm to the project and a future that will bring more customers.
- Exploiting social media platforms to display products and goods offered to customers with special offers prices.
See also: The best profitable business project in Algeria
Reasons for the loss of the supermarket
It is expected that things will not look as planned, whether in work or personal life, as there are obstacles and dilemmas, but losing your project is not the end of the world. And drawing lessons and the decision to change, all in order to recharge the energy to return again. As for the reasons for the loss of the supermarket, we explain it as follows:
- Neglecting hygiene
- Ignorance of accounts
- Bad employment selection
- Neglecting to do a feasibility study
- Limitation to specific products without expanding and developing the project and what the labor market demands.
How much is the daily supermarket income in Saudi Arabia?
The daily income percentage is different in a supermarket project in Saudi Arabia, according to the source of the goods, and the prices vary from one trader to another, and it is better to buy from importers directly, as this gives you access to low prices with a high profit rate. Below we explain the answer to how much income Daily supermarket in Saudi Arabia:
- Income of all kinds of detergents is about 15%.
- Also baked goods are about 18%.
- And canned food is about 25%.
- Also, cheap biscuits and chips are about 25% off.
- The income of dairy and cheese and others is about 10%.
- The food oils are about 10%.
- And tea and flowers about 7%.
- Baby supplies and diapers are about 11%.
- Sweets and juices are about 20%.
- The income of personal care and hygiene items is about 15%.
- While tissue paper of all kinds is about 15%.
- Spices and flavorings are about 21%.
- The grains and legumes about 8%.
- Also, the income of powdered milk is about 9%.
- Also, citrus fruits and nuts are about 30%.
- Soaps and shampoos are about 10%.
- The daily income of pasta, noodles, Maggi soup, and indomie is about 12%.
How do I calculate the profits of the supermarket? In this article, we mentioned a lot of details about the supermarket project, standing on the success factors of the project and the reasons for the project’s loss, as well as calculating the percentage of profits with tips to increase profits.