Chris Koerner walks Broadway in Nashville, spots an unusual bracelet store, and reverse-engineers its finances to estimate whether it’s profitable. He estimates daily overhead (~$1,000/day) by adding labor, rent, and utilities, examines product pricing ($35–$200 per bracelet), and concludes the shop likely isn’t a strong money-maker.
Look at this freaking thing right here. I was walking down Broadway in Nashville and I saw this store. I'd never seen anything like it. So I had to reverse engineer how much money it makes per year. Let's see if this is a cash cow or a dud. First of all, their overhead is about a thousand dollars a day. I know this because they have four employees. They're probably paid about $20 per hour each after you include payroll taxes. They're open eight hours a day, every day. So that's $80 an hour times eight hours a day. $640 a day in labor. It's about $120 a day in rent pay because I know it's about 800 square feet and they have $45 per square foot rent, so that's about $3,000 a month. And then you've got utilities. Internet called a thousand bucks a day overhead. Now they charge between 35 and $200 for a bracelet. You can even custom make your own bracelets or buy pre made bracelet. That means just to break even, they need to sell about 30 bracelets a day. Now some days are probably slammed. Right now they're doing okay. Some days they're probably empty. Is this a cash cow or a dud? I think it's a dude.
