“Let’s do a little bit of Main Street Math. Follow with me. This should be fun,” reports IOwnDowntown.com. “The average downtown retail space in America is about 2000 sq. ft.
The average downtown rent in America is about $16.40 per sq. ft.
That means that the normal downtown retailer is paying about $32,800 a year in rent.
So, with out standard market up of 50%, the retailer needs to sell $65,600 worth of product just to break even. for rent. alone.
Okay, a little more math. Let’s get slightly more complicated now. Did I mention my mom taught math in high school?
Ok, back to class.
You need lights and heat.- Average monthly bill of $674.09 x 12= 8089.08
Need to sell another $16,178.16
Phone, Fax, Internet- $218.00 x 12= $2616.00
Security- $54.18 x 12= $650.16
Window Washer- $12 x 24= $288.00
Cash Register Tape, Shopping Bags, Toilet Paper, etc= $28.68 x 12= $344.16
Total of $5,356.32
Need to sell another $10,712.64
Grand total of $92,490.80 simply to exist.
WAIT!!! So, if you process credit cards, it will cost you an additional $2034.79 to process all those payments.
But people should make money, even a little money, right? So let’s add in the average starting salary for a teacher in the lowest paying state in the Union, Montana.
At this rate, a downtown business needs to sell $577.03 every single day that it is open.
Every single day, simply to be compensated the same as America’s lowest paid teachers. And this is all in a perfect vacuum. This assumes that every product you buy, you sell. There are no sales. Nothing is shoplifted. Nothing is scratched, dented, rotten or ruined.
The rest of the article is here.