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Average Gross Revenue and Outliers

Discussion in 'Picture Framing Business Issues' started by Syano, Dec 29, 2016.

  1. Syano

    Syano Grumbler in Training

    Hello,

    Does anyone know what the average gross revenue of an average frame shop, not doing commercial accounts, is?

    Please check my thinking. I’m figuring the range is 5k per year (hobbyist) to 1m a year (someone doing extremely well). And the middle of the bell curve for most frame shops around 80k to 160k.

    Your thoughts are appreciated.

    Thanks,
     
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  2. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    Interesting question.

    I can tell you that your highs and lows are not low enough or high enough.
    • If you're talking "hobbyist" it could be just a few hundred dollars.
    • I don't have any hard numbers, but know of several custom shops (no commercial) that, based on number of employees, perceived rent, etc, must be doing 5-10MM.
    What do you intend to do with the information?
     
  3. Syano

    Syano Grumbler in Training

    David,

    This information will help with projections I’m making on a new space.

    Not so interested in the outliers but rather what the averages are – dead center of bell curve.

    Framing is a subset of our business and need to know what the averages are (stressing on average) to help with projections.

    Thanks for your input.
     
  4. Dave

    Dave SPFG, Supreme Picture Framing God

    :D

    Couldn't really comment because we are NOT your average frame shop.

     
    Al B and GUMBY GCF like this.
  5. i-FRAMER

    i-FRAMER MGF, Master Grumble Framer

    Hi Syano, The gross revenue will depend on how many staff you have available, your pricing structure and demand for your business. There are lot more shops with an average of 2 persons usually owner and partner or 1 worker. In Australia i would say these shops would average 120-250k a year in sales. Their profit can sometimes be equal or more than that with a shop of sales exceeding 1m with staff.
    I can tell you in our shop we have had sales on average 250k for the last 5 years with myself and 2 staff. After my wife came back to work, and we laid off staff, our sales actually increased for a couple of years to over 300K. 1 reason is Nicole is better at selling/charging customers, the second being nobody works harder the owners.
    So if you are planning on diversifying, is it to fill hours of existing staff, or will you be adding staff?
    I would be looking at your costs, what sort of sales you need to do to cover those costs and give you profit.
    Keeping in mind that it also may take some time to reach that goal.
     
    shayla likes this.
  6. GUMBY GCF

    GUMBY GCF SGF, Supreme Grumble Framer

    Your question is to basic.complex answer.
    Depends on what city, population, income average, and location.
    If you do not go by at least those basic parameters you will most likely fail.
    I agree with Dave.
     
  7. CB Art & Framing

    CB Art & Framing SGF, Supreme Grumble Framer

    I would work it bacwards.
    Ideally, realistically how much nett profit do you want your framing department to have.
     
  8. GUMBY GCF

    GUMBY GCF SGF, Supreme Grumble Framer

    If your location/population is not able to support it, it does not matter how much you wantto make.
     
    FM Framer and shayla like this.
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