Return on Investment - Farm Shop Example
ROI based on actual sales performance of a farm shop in the South of England
(average transaction price £12, 125 sales per day)
Assume your own location and data connection available
£37,832 capital cost, leased over 60 months at £756 per month
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Number of units | 1 | 1 | 1 | 1 | 1 |
| Cost of units | Lease | £0 | £0 | £0 | £0 |
| Project set up costs | £4,500 | ||||
| Total investment | £4,500 | £0 | £0 | £0 | £0 |
| Sales revenue | £547,200 | £547,200 | £547,200 | £547,200 | £547,200 |
| Cost of goods | £350,208 | £350,208 | £350,208 | £350,208 | £350,208 |
| Gross margin | £196,992 | £196,992 | £196,992 | £196,992 | £196,992 |
| Operating expense | |||||
| Machine lease costs | £9,080 | £9,080 | £9,080 | £9,080 | £9,080 |
| Vending web access and telephone support fees | £828 | £828 | £828 | £828 | £828 |
| Shrink, returns and chargeback | £2,736 | £2,736 | £2,736 | £2,736 | £2,736 |
| Rent/revenue share to location | £0 | £0 | £0 | £0 | £0 |
| Merchandising: warehousing and replenishment labour costs | £49,248 | £49,248 | £49,248 | £49,248 | £49,248 |
| Credit/debit card processing | £4,925 | £4,925 | £4,925 | £4,925 | £4,925 |
| Maintenance and repair costs | £240 | £240 | £240 | £240 | £240 |
| Electricity running costs | £120 | £120 | £120 | £120 | £120 |
| Connectivity | £0 | £0 | £0 | £0 | £0 |
| Sub Total | £67,176 | £67,176 | £67,176 | £67,176 | £67,176 |
| Net cash | £125,316 | £129,816 | £129,816 | £129,816 | £129,816 |
| Cumulative cash | £125,316 | £255,131 | £384,947 | £514,762 | £644,578 |