Monthly net profit is sales minus product cost, spoilage, the location's commission, card fees, sales tax you absorb, restocking mileage, repairs, insurance and licensing, power, and any loan payment. Payback is the cash you put in divided by that monthly net profit.
- Idea score
- Up to 40 points for payback (full at 6 months, none at 48), 25 for net margin (full at 30%), 15 for a low-risk location, and 20 for hourly earnings (full at $40/hour).
- Sensitivity
- Each key assumption is moved 20% up and down while the others stay fixed. The three that swing net profit most are listed first.
- Hours
- Restock minutes plus drive time at 30 mph, times trips per week. Buying and bookkeeping time is not included.