(A) Pricing Errors Correction

American Dry Cleaner Magazine Recently ran an article on pricing errors in the average dry cleaner They suggest that pricing errors are in the favor of the customer between 5% to 12% that averages 9%

Your error (3)______%

(A) TOTAL PRICING CORRECTION IN DOLLARS

(1)X(3) = $____________

(B) UPCHARGE INCREASES

You Will be able to set variable up charges on certain items of your choice.  The computer will accurately apply these charges in the creation of the invoice

Avg # of invoices per day

                        (2)_______

1out of 4 with

Up charge              X 25%

Ticket upchg   (4)_______

.50  uncharged        X .50

$ /Day upchg  (5)_______

22 working days        X 22

  (B) Total Up-charges per month

(6)      $____________

(C ) Energy Charge

Most dry cleaners are burdened with environmental fees for clean up.  The computer will allow you to put a small charge on the bottom of the invoice to cover such costs The average is between 2% and 8%.

Your Energy Charge

                   (7)________%

(C ) Total Env Charge per month

(1)X(7) = $____________

(D) Supply Savings

The new modern invoice system will save many dollars over the year The average manual invoice cost is about 5 cents.  The average computer generated invoice is about ½ cent.

# Invoice/day  (2) _________                 

Avg manual inv.      $       .05

Less New cost             -.005

Saving per Inv (8)       $.045

Saving/day(2)X(8)$_______(9)

22 working days (10)       X 22

(D) Total Saving Per month

(9)X(10) = ____________

(E) Theft and Shrinkage

Most dry cleaners experience some shrinkage.  It can be as little as a few cents per day.  But it not uncommon to see as much as a $100 per day!  Input the amount that you think would be reasonable.

Shrinkage/day (11)$_______

22 working days(12)      X 22

(E) Total Shrinkage per month

(11)X(12) = $____________ 

Summary of Savings/INCREASE IN INCOME

(A) TOTAL PRICING CORRECTION IN DOLLARS

(B) Total Up charges per month

(C )Total Env Charge per month

(D) Total Saving Per month

(E) Total Shrinkage per month

Total Increase in Cash Flow

$____________________

Cost of Computer Equipment

If Leasing subtract lease payment

Or

If paying cash take cost / by 48 and subtract amortization

    - $____________

Net Savings/ increase in income

$____________________