Profit Guide

The following Profit Guide (per sale of one baked potato) and Profit Estimate (on average baked potato sales per day) are provided to indicate what may be expected by selling Baked Potatoes at the nominated prices, in the quantities shown whilst buying clean washed potatoes and toppings at the suggested prices.
The figures shown, whilst indicative, will vary from region to region, State to State. It is suggested that interested parties should do their own Profit Estimate based on their own local knowledge and local market conditions

Typical profit or gross margin on the sale of one baked potato

Selling Price Including GST	$4.50	$5.00	$5.50	$5.90	$6.30

Cost of potato	35¢	35¢	35¢	35¢	35¢
Cost of toppings	65¢	65¢	65¢	65¢	65¢
Cost of plastic knife & fork, serviette, container, paper bag	28¢	28¢	28¢	28¢	28¢
Total Cost per unit	$1.28	$1.28	$1.28	$1.28	$1.28

Profit per Serve (includes G.S.T.)	$3.22	$3.72	$4.22	$4.62	$5.02

PROFIT ESTIMATE USING A KING EDWARD POTATO OVEN



	Average Potato Sales per Day	10	15	20	25	30

A	Average selling prices	$6.80	$6.80	$6.80	$6.80	$6.80
B	Average Costs per serve	$1.30	$1.30	$1.30	$1.30	$1.30

C	Average gross Margin per serve	$5.50	$5.50	$5.50	$5.50	$5.50
	(C= A - B)

D	Profit - Gross Margin per day
	(D = C x Average potato sales per day	$55.00	$82.50	$110.00	$137.50	$165.00

E	Working Days per Week	6	6	6	6	6

F	Working Days per Year	300	300	300	300	300
	(F = E x 50 wks per year)

G	Profit - Gross Margin per Year	$16,500.00	$24,750.00	$33,000.00	$41,250.00	$49,500.00
	(G = F x D)

H	Payback period in Days	74	50	37	30	25
	(H = price of oven � D)

I	Payback period in months
	(I = H �25 i.e. 25 W.D per mth	2.95	1.97	1.48	1.18	1.00

J	Return on Investment in %age
	Small oven	406	609	813	1016	1220
	Large oven	275	413	550	688	826

Notes

1. The �Average Potato Sales per Day� are over and above what may already be achieved with an oven �out the back�.

2. The �Average Costs Per Serve� is approximately $1.24, which includes a potato with two or three ingredients, takeaway container, plastic knife and fork and napkin.(in our calculations we assume $1.30)

3. There is no need to wrap potatoes in silver foil � at any time saving in time, labour and materials.

4. From ovens sold it can be seen that by using a King Edward Potato Oven as a point of sale additional potato sales will increase five (5) to six (6) times and prices can also be increased.

5. The electricity to run a King Edward Potato Oven is less than that required to run an average size cappuccino machine.

6. The G.S.T. has been included in the above calculations.

7. The payback period in days and in months together with the returns on investment are based on the price of the small and large oven prices of $4,059.00 and $5,995.00 respectively (i.e. prices inclusive of G.S.T.)

8. The prices in note 7 above are for deliveries in Victoria. For interstate deliveries it will be necessary to apply an additional charge to cover packaging, door to door insurance and freight.

design = the electric communication company