Sally decides to purchase a mobile pet grooming van. She purchases a brand new Ford F350 extended with a three years – thirty-six-thousand mile warranty, fully converted with all the options that a groomer dreams of, for an unbelievable price of $59,995. She puts a small down payment and finances the balance at $1,000/mo.
Unlike a mobile pet grooming van, a storefront salon continues to pay rent, continues to pay employee wages, continues to pay utilities, continue to be committed to be open 6 days a week, 10 hours a day whether it is busy or not, continues to have to renew a lease with an increase every single year, and continues to have to groom a minimum of 10 pets a day just to break even.
Sally is smart, after paying off the mobile grooming van; she has no expenses except for gas, insurance and supplies. Sally only wants to groom five dogs or cats a day at an average of $75 each. She only wants to work five days a week and she wants to choose her hours.
How much money can Sally make in a month from grooming dogs and cats?
Daily income, no tips included = 75 * 5 = $375
Weekly = $375 * 5 = $1875
Monthly = $1875 * 52 / 12 = $8125
Sally’s monthly gross revenue = $8125
Monthly Profit & Loss
Van Payment: $1000
Total Expenses: $2000
Monthly Net Profit: $6125
Annual Net Profit: $73,500
When van is paid off: $85,500