© The Pet Groomers Pages

Formula for Profit - Submitted by Wendy Royston

The following equation will produce the hourly rate required for your shop to produce required profit.
Fill in lines 1 - 12 with monthly rates

1. Rent/Mortgage (including taxes, common area fees, etc.) $______
2. Utilities (Hydro, gas, etc) $______
3. Phone (including yellow pages) $______
4. Misc. Advertising $______
5. Insurance (Liability, Malpractice, Workman's Comp., etc.) $______
6. Equipment (including office equipment) $______
7. Building Improvements $______
8. Supplies (incl. office supplies, bags, receipts, etc) $______
9. Professional Fees (Accountants, attorneys, etc.) $______
10. Maintenance Fees (Laundry Services, Janitors, etc.) $______
11. Equipment Maintenance (Repairs/restorations) $______
12. Cash Reserve (Monthly deposit to save for emergencies) $______
13. ADD LINES 1-12 FOR TOTAL MONTHLY OVERHEAD $______
14. Enter your total number of productive days each month $______
15. Enter the total produced by dividing line 13 by line 14 $______
16. Enter your total number of hours worked daily $______
17. Divide line 15 by line 16 and enter here $______
18. Enter your weekly income requirements to achieve your desired gross income $______
19. Enter your total number of hours worked weekly $______
20. Divide line 18 by line 19 and enter $______
21. Total figures on lines 17 and 20 and enter $______

Note: Your figure on line 21 is the total hourly rate required for profitability

The following equation will produce the required number of dogs you must groom daily to yield a profit.

1. Enter total hourly rate required for profit from line 21 _______
2. Mutiply line number one by the 8 (average) daily work hours _______
3. Determine your average charge per dog and enter _______
4. Divide figure on line 2 by amount on line 3 _______

Note: Total on line 4 is the total number of dogs you must groom daily for profitability.

This worksheet is based on a one person shop with no employees. Employees wages (incl. all Unemployment Insurance premiums and Canada Pension Plan premiums) mus be included in the first portion if applicable. Any loan payments, etc. related to business must also be included.

printed with permission of author, John Proctor