Budget
What you will find on this page:
· Information on how to manage money
· Useful money management tools
Managing Money
Operating a financially successful tuckshop
It is not just the food that is sold that determines profit. There are many tuck shop management issues that also play a part. Operating a financially successful tuck shop involves managing the tuck shop’s resources efficiently to meet the goals of Smart Choices and the school community’s expectations regarding profit.
This includes:
• knowing what the tuck shop spends and earns
• accounting for all the tuck shop’s money and stock.
•Some tuck shops now use cash registers to help with this process
• working out the cost price of all items (that is, how much it costs the tuck shop to make or buy the product)
• setting selling prices to cover all costs and make a profit.
For a tuck shop to operate as a profitable business, income must be greater than the costs involved in running the tuck shop. Costing foods accurately is an important part of making sure all costs in the tuck shop can be met.
The cost of a food or drink can be calculated by:
• using the wholesale price of the food or drink
• adding up the cost of all the ingredients that make up a food or drink
• including the cost of packaging of the food or drink where appropriate.
Many tuck shops also have the following costs:
• the cost of employees including wages, workers compensation insurance, superannuation and long service leave
• electricity, gas and water
• equipment, including ongoing maintenance.
The selling price can also be set using the supplier’s recommended retail price. If the tuck shop does not choose to sell at this price, it is important to regularly check for price increases using supplier invoices.
For further information on mark-up schedules andother areas of tuck shop financial management contact your parent organisation.
Setting selling prices
The tuck shop sets selling prices to cover costs. The mark-up is the difference between the wholesale price of the food (cost) and the selling price.
When setting the selling prices for foods and drinks the tuck shop committee should consider:
• What is the cost of the food to the tuck shop?
• What are the other costs involved in running the tuck shop?
• What would be a reasonable price to pay in order to gain sales?
• Is there competition from other shops nearby?
• Does the tuck shop have a policy of lower prices of foods and drinks in the GREEN segment and higher prices on less healthy foods?
The tuck shop mark-up schedule shows the percentage mark-up on each item and the sales volume of each food and drink item. The mark-up schedule can help the tuck shop determine the average mark-up to use.Some school tuck shops use a standard gross profit for all items, that is, they apply a standard mark-up of approximately 33 percent to all items.
The selling price can also be set using the supplier’s recommended retail price. If the tuck shop does not choose to sell at this price, it is important to regularly check for price increases using supplier invoices.
For further information on mark-up schedules andother areas of tuck financial management contact your parent organisation.
How to Minimise Tuckshop Costs
There are several ways to minimise costs in the tuckshop:
• Provide clear instructions for all tuckshop staff to ensure that all foods and drinks are prepared and sold in standard serve sizes, for example, the same quantity of filling each time for sandwiches and rolls.
• Use portion control equipment so serves of foods and drinks are the same each time the product is made.
• Avoid unnecessary packaging and wrapping.
• Put procedures in place to provide accountability for all products and money in the tuckshop.
• Sell foods and drinks nearing their use by date at a reduced price to avoid a total loss.
TIP Review the costs on all items regularly.
For the complete version of this information click here
| copy_of_tuckshop_cash_book.xls | |
| File Size: | 594 kb |
| File Type: | xls |
Online Cashbook and Professional Support
If you require an online cashbook site or Professional support, please visit the following sites:
Cash book site
Professional support
Images retrieved from:
Voisin, S. & Fatfree Vegan Recipes. (2005).Retrieved April 15, 2009, from http://blog.fatfreevegan.com/2005/12/recipe-index.html
