Usually in terms of margin, the distributor would have taken a big chuck in terms of volume sales, before that still got manufacturer & brand company taking big portion of the profit, so when optical shops get the stock the cost should not be that low to allow over few hundreds or thousands % profit right? If the retail profit so high why won't distributor increase their profit margin in the end everyone still make alot.
If you say the glass has higher profit margin i can understand as most shops do their glasses or have special shop do that and usually normal glass cost more than normal frames.
But then your numbers already gave us the insight the startupcosst & running cost, so how many glasses & frames you need to sell each month just to cover the running cost?
My question is on those smaller private shops that are not located in prime areas. Maybe they rely alot on school plans etc but then there are so many competitors around also eyeing on such bulk orders, so smaller shops that takes less stock means their cost is higher than big shops in terms of stocking, so i'm wondering what they do to counter the less customer flow & higher stock price disadvantage.
If you talk about those cheaper clothing shops that sells rm20 a piece, their cost is probably very cheap maybe rm5 per piece or less but that is due to lesser quality and crazy China suppliers that's selling it dirt cheap. I know some China factories actually selling their stuff close to cost price, but i guess the big bosses doesn't know about it or there's hidden reason.
QUOTE(Hunakadoo @ Nov 18 2012, 12:56 PM)
Spec are in high prices , due to our costing also higher compare to others business .
eg :
computer refractometer might cost a around RM30k
Machinery inside refraction room might cost around RM30k
Machinery to cut lens might cost RM100k
Rental , Optical shop have to be rent at place which is obvious , meanwhile rental sure exceed > RM8k
Round-up if you want to own a optical shop . RM400k capital is a must .
** unless you running a low end optical shop .