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Help! I can't afford a computer for my store.
Reprinted from the June 2001, NARTS newsletter."I can't afford a computer for my store". That's a comment
I hear all too often from new store owners. While the costs of opening a new store
can be sizable, I believe that not including money in your budget will actually COST you
money in both the short and long-term. Let's take a quick look at a cost-benefit
analysis of automating your store and determine when the computer will have paid for
itself. We'll make the assumption that your time is worth $20 per hour (how much is
it worth to your family?!).
Cost of computerization
| New computer system with InkJet printer |
$1,000 |
| Consignment software |
$895 |
| Point-of-sale hardware |
$700 |
| Total automation cost |
$2,595 |
Benefits of computerization
| Posting items to consignor accounts |
1 hour |
| Handwriting tickets |
1 hour |
| Reconciling sales, balancing, and bookkeeping |
1 hour |
If we assume your shop is open six days a week, the time spent would be 18 hours
per week (times $20 per hour) or $360 per week. Dividing our computerization cost of
$2,595 by $360 gives us a payback period of about 7 weeks, or less than two months!!
Now some of you are undoubtedly questioning my figures (as this tends to be
somewhat subjective) so please, use your own numbers and apply the same logic. I
think you'll find, if you believe your time is worth anything, that computerizing your
store will pay for itself quicker than you think. This is especially true if you've
hired an employee to perform those tasks.
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