For gift shop owners, every square foot of floor space counts. Maximizing profitability in small areas is crucial, and custom souvenir stickers offer a compelling opportunity. Let’s dive into the numbers to see just how profitable this option can be.
Cost Breakdown:
- Cost per sticker: $0.69
- MSRP (Retail Price): $2.99
- Profit per sticker: $2.99 - $0.69 = $2.30
You have a sticker stand that holds either 9 or 15 different designs, with 100 stickers per design:
For a 9-design stand:
- Total stickers: 9 designs × 100 stickers = 900 stickers
- Total investment: 900 stickers × $0.69 = $621
- Total potential revenue: 900 stickers × $2.99 = $2,691
- Total profit: $2,691 - $621 = $2,070
- Total stickers: 15 designs × 100 stickers = 1,500 stickers
- Total investment: 1,500 stickers × $0.69 = $1,035
- Total potential revenue: 1,500 stickers × $2.99 = $4,485
- Total profit: $4,485 - $1,035 = $3,450
Profitability per Square Foot
These stands are compact and can fit into a very small footprint. One sticker stand takes up less than 1 square foot of space.
For a 9-design stand:
- Total profit: $2,070 per stand
- Profit per square foot: $2,070
- Total profit: $3,450 per stand
- Profit per square foot: $3,450
Why Stickers?
- Affordable: At a cost of $0.69 per sticker, the initial investment is relatively low.
- High Margins: A $2.30 profit per sticker provides excellent return on investment.
- Low Space Requirement: The stands take up minimal floor space, so you can generate substantial revenue even in tight areas of your shop.
- Custom Appeal: Stickers can be customized to reflect the local attractions, giving them a personal, souvenir-like appeal that customers love to purchase.