Sad to report, but not only did I not meet my goal of making $20K more than I did last year, I fell short of making what we did last year by $10,000.
Does this hurt? Yes. I still owe $30K in bills (christmas, halloween and candles) and loans (a $5K loan from a friend) and I only have half of that in the bank. I’m running the most competitive sale I have ever had (50% off) and it still isn’t bringing them in. How about, buy one get one free or 60% off other things…. nope. Still $5K in candles, just sitting there. Ebay is my next avenue.
Of course the more popular collectibles are gone, which is good to see and remember for next christmas. But, how am I going to pay off these bills? I can’t order valentine’s or easter because I don’t have the money. I’m stuck. I’m stressed. Good news is, I lost some weight because of the stress.
Back to the sale… if I’m selling things at COST, I’m still incurring overhead and I’m just paying to be here. I need to do the math and see if giving it to good will would be a better write off. Oh, and doing an inventory rough count… I have a LOT less inventory than originally thought. Even if I liquidated everything at RETAIL price, I would only be making about $20K for the 5 years of struggling.
I am going to close my shop. I can’t struggle this much, especially when people are scared of a recession, the writer’s strike etc. I can’t keep up, but I gave it my best shot. Five years of “barely making it” has caught up with me.
Some math:
Last year, we made $121,000.00 in sales. Immediately take $60,000 of that and stick it onto inventory costs. Okay, then rent and overhead… about $3200 a month. That’s $38,400. So, $60,000 + $38,400 = $98,400. Therefore, approximately $22,600 was profit. Well, I had to pay someone to help me… deduct about $5,000 = $17,600. I took home roughly $12,000 leaving $5600 “floating”. On paper we purchased more inventory items… or possibly, some of what sold was on sale so I didn’t make as much profit. I make $1,000 a month. And that’s average, if not “good”. I can’t live on that. And… back in 2006 I took out $20,000 in credit card loans to help pay for expenses.
And about my triple mental breakdowns throughout the season… Customers have been exceptionally rude, pushy, demanding AND cheap this year. They want all items from the customer service triangle… FAST, CHEAP and GOOD (quality). Usually, you can only pick two, so I’m told. My favorite quote of the season, regarding my 11 am opening days on monday, tuesday, wednesday and thursday… “What is with that 11 o’clock shit???” Because she would show up at 10:00 am several days in a row and “couldn’t figure out” our hours (Which are posted in 3 places). Gee… then she paced for 20 minutes waiting for me (I RAN down the street to sit on a bench in the sun to avoid her) to giver her a discount because I did it once before 2 years ago on her Christmas purchase. My helper didn’t give her a discount and saw through the drama. Okay, so this is just one extreme, and we have 2% totally rude, 2% totally awesome and 96% average. This year, for some reason, financial crunch perhaps, I had more rude and pushy than ever.
And just now… I mean, 10 seconds ago… a lady I haven’t been able to stand since 2001 at my street fairs… just AUDIBLY burped… she did say “excuse me” but she is sitting at the door yelling to her daughter inside the store to hurry up “haven’t you seen EVERYTHING you want to now?!?!” Now she’s making faces because someone is speaking korean and she doesn’t like it. GOOD LORD, where do these people come from??
So… I feel like it’s time to move on. I’ve learned SO much and I’m so grateful for this experience but in order to grow, I need to close these doors and pursue another avenue. I know I’m going to be a puddle on the floor the last week or two, but really… after this season, I can’t take it anymore. And I know… without a doubt, that I did everything I could possibly do to make this a success.
I’m sad, but also relieved that this weight, this responsibility is going to end. I’ll have the freedom to run my business from the internet without the overhead, liability and day-to-day stress… the interaction and endless stories of woe. All done.
I have a few of my supporters who are going to be very upset when I go…. and I’ve been trying to comfort one of them. She has been so encouraging, positive and even gave me a loan. I feel guilty, but… I did what I could. It’s time to go.