We have taken the prices of basic round neck black t-shirts from 5 different brands including Hollister to compare

the average pricing of

our brand to its competetors

We came to a conclusion that Hollister is a brand which is mid-ranged with a price point of Rs 1,000, Whereas brands like Zara, H&M,
Aeropostale, UCB have a lower pricing ranging from Rs 399- Rs 899

However brands like A&F and American Eagle have a higher ranging point from Rs 1,000- Rs 1,500

So sir on an average, the salary of a retail sales associate is Rs 15,000 per month and of a retail sales manager is Rs 25,000 in India. So we
have taken an average salary of Rs 20,000 for employees .

FOR FIRST MONTH

So for 30 EMPLOYEES AND MANAGEMENT PERSONNEL WILL BE TRAINED, COST AND SALARY,WAGES AROUND Rs 6.5 Lakhs per month

Property and equipment, net ; Rs 70,00,000

Logistics and distribution Rs 2,50,000

Advertising, marketing and administrative expenses: Rs 1,50,000

Rent ; 350 per square feet*12,000 Square foot = Rs 42,00,000

Electricity of store; Rs 60,000

We are assuming the sales to increase by 20%…

Sales = 8,000 customers * 1000 Avg amount spent = Rs 80,00,000 or 80 Lakhs

Margin = Sales * 20% margin = Rs 16,00,000 or 16 Lakhs

Total expenses for first month = 1,23,10,000

Break even = when margin is equal to expenses

We will reach break even in 7-8 months