Let me correct this as a boba shop owner myself. Rent cost: 10% Employee cost(CA): 40% Cost of good sold: 15% Utilities: 10% Insurance, taxes etc: 10%
Total profit margin is about 15%
M
@matthewstewart5113
39
Awesome video. Do more companies break downs. Include 401k and insurance for employees. Also, insurance for the business please. Ty
T
@totalcoward
37
Only issue I have with this estimate is that you listed the barista’s yearly salary as $40k, but the upper end for an average barista’s yearly salary in California is ~$32k, which would slightly reduce the cost of labor and increase amount earned per drink.
J
@joeyr1996
29
Oh Humphrey… what a wonderful breakdown of everything except one thing. You forgot the actual cups. 😂
L
@luminescent1515
12
Selling 600+ Cups per day is a hell of a Sale.....
C
@caeila808
5
Modern MBA channel also did an excellent episode on the economics of boba tea, or how boba shops really make money. Interesting stuff!
O
@offhamsterwheel2789
5
55% margin is not bad, but with inflation 8%, will eat up the margin though, and plus the Recession...
V
@vertical_user
3
Can you explain why tf Apple products so over priced
N
@nhungbui2259
2
The margin calculated in the video is dependent on the sale per day and only meaningful to the shop mentioned in the video. I think it would be better to list the cost to make a cup, rent, other bills, and 10% hidden cost per day. The end result should be how many cups to break even, 10%, 20% margin and so on.
B
@believingintheblood8540
2
Why would someone they 40 K a year just putting together a drink talk about getting paid for no skill
M
@matthewstewart5113
39
Awesome video. Do more companies break downs. Include 401k and insurance for employees. Also, insurance for the business please. Ty
T
@totalcoward
37
Only issue I have with this estimate is that you listed the barista’s yearly salary as $40k, but the upper end for an average barista’s yearly salary in California is ~$32k, which would slightly reduce the cost of labor and increase amount earned per drink.
J
@joeyr1996
29
Oh Humphrey… what a wonderful breakdown of everything except one thing. You forgot the actual cups. 😂
L
@luminescent1515
12
Selling 600+ Cups per day is a hell of a Sale.....
C
@caeila808
5
Modern MBA channel also did an excellent episode on the economics of boba tea, or how boba shops really make money. Interesting stuff!
O
@offhamsterwheel2789
5
55% margin is not bad, but with inflation 8%, will eat up the margin though, and plus the Recession...
V
@vertical_user
3
Can you explain why tf Apple products so over priced
N
@nhungbui2259
2
The margin calculated in the video is dependent on the sale per day and only meaningful to the shop mentioned in the video. I think it would be better to list the cost to make a cup, rent, other bills, and 10% hidden cost per day. The end result should be how many cups to break even, 10%, 20% margin and so on.
B
@believingintheblood8540
2
Why would someone they 40 K a year just putting together a drink talk about getting paid for no skill
Rent cost: 10%
Employee cost(CA): 40%
Cost of good sold: 15%
Utilities: 10%
Insurance, taxes etc: 10%
Total profit margin is about 15%