X

 You Should Invest In .... Food Wholesale/Distributor Business

 

 Woman Grocery Shopping

 

 

 You Should Invest In .... Food Wholesale/Distributor Business

 

Recession-Proof

Pandemic Proof

 

Retail has had a few rough years. Retail was already experiencing a slow and steady decline in sales over the last few years way before COVID 19.


COVID 19 has forced several retailers into closure and bankruptcy.


The one sub-sector in retail that has done exceptionally well during COVID 19 in grocery stores, grocery wholesalers, and grocery distributors.

These businesses serve as an essential need in our communities and economies.

 

Let's look at a financial forecast. All currency is in Jamaican dollars (JMD). 

 

 
 Capital to Setup Location     Turn Key     $   5,000,000            
STARTING CASH FOR STOCK        $ 10,000,000              
                     
      Wk. 1 Wk. 2 Wk. 3 Wk. 4
Bank Account Opening Bal.        $    10,000,000    $   10,000,000    $  10,000,000    $      10,000,000
                     
REVENUE                    
Wholesale   $9,000,000    $      9,540,000    $     9,540,000    $    9,540,000    $        9,540,000
                     
Retail   $1,000,000    $      1,180,000    $     1,180,000    $    1,180,000    $        1,180,000
                     
TOTAL REVENUE        $    10,720,000    $   10,720,000    $  10,720,000    $      10,720,000
                     
EXPENSES                    
                     
Cost of Goods        $    10,000,000    $   10,000,000    $  10,000,000    $      10,000,000
                     
Staffing Expenses        $         121,000    $        121,000    $       121,000    $           121,000
                     
Operating Expenses        $         213,862    $        213,862    $       213,862    $           213,862
                     
Debt Service   10%    $      31,250.00    $     31,250.00    $    31,250.00    $        31,250.00
                     
Total Expenses         $    10,366,112    $   10,366,112    $  10,366,112    $      10,366,112
                     
Net Op. Income/Weekly. Profit        $         353,888    $        353,888    $       353,888    $           353,888
                     
         
                     
Bank Account Closing Balance        $    10,000,000    $   10,000,000    $  10,000,000    $      10,000,000

 

 Assumptions:

  • Capital Expenditure to Setup Location:  includes all leasehold improvements, freezers, standing coolers, scales, point of sale systems (both hardware and software), security system, CCTV, office furniture, and equipment, security deposits for utilities, and the lease deposits. 
  • The markup on the wholesale pricing 6%.
  • The markup on the retail pricing 18%.
  • Startup capital of $15M all borrowed at 10% interest-only payments.
  • No reinvestment of the profit. Only the $10M is reinvested in new stock.
  • Will take 16 weeks to build the sales with a focused marketing campaign.

 

 Expenses Review

  Staffing Cost:    
1 Meat Room    $  12,500
2 Cashier    $  24,000
1 Driver    $  13,000
1 Sideman    $  12,000
1 Store Manager    $  25,000
3 Gen. Labour    $  34,500
       $121,000
       
       
  Operating Expenses  
  Building Lease    $  50,000
  Int,/Phone    $    5,000
  Water    $    2,500
  Light    $  20,000
  Garbage    $    1,000
  Trucks & Ins.    $  32,862
  Gas    $  15,000
  Alarm Service    $    5,000
  Security    $  35,000
  Vehicle maintenance    $    5,000
  Professional Services    $  12,500
  Misc.    $  30,000
       $213,862

 

Summary:

Invest $15M 

Monthly profit $1.4M

 

UNPARALELL DEMAND


A SAFE PLAY


SOLID BUSINESS INVESTMENT

 

Why Cyber Security Should Be At The Top Of Your We...
Tales from under the Merkle Tree
 

By accepting you will be accessing a service provided by a third-party external to https://caribnewsroom.com/