Suitcase Repair Break-Even: About $24K Monthly Revenue Needed

Fixed costs $18.0K/mo Base monthly overhead

Contribution margin 75% After variable costs

Break-even revenue $24.0K/mo Monthly target

Break-even timing Month 8 Model break-even

Break-even calculator

Test whether monthly repair revenue covers direct parts, fees, and shop overhead.

Lean Base Full

Monthly revenue Revenue drives the margin left to cover fixed costs. $ Low sales High sales Variable expenses These rise with each repair, including parts, shipping, and processing fees. $ Low costs High costs

Money available to cover fixed costs $73,664 $95,667 revenue - $22,003 variable expenses

Margin ratio

77%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that contribution margin must cover. $ Lower fixed Higher fixed

Break-even chart Revenue Total costs

Which suitcase repair expenses stay fixed and which move with sales?

Cost classification

Break-even is only useful if the model separates flat shop overhead from repair-volume costs. Misclassifying parts, card fees, or technician step-ups can make Month 8 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Workshop Rent	Fixed	Use $3,500/month as flat overhead from Month 1 through Month 60.	Tying rent to repair volume instead of capacity.
Shop Manager	Fixed	Use $65,000/year as fixed payroll at 1.0 FTE across all forecast years.	Cutting management pay when monthly sales dip.
Lead Repair Technician	Semi-fixed	Model $52,000/year per FTE, stepping from 1.0 to 1.5 FTE in the third year and 2.0 FTE in the fourth year.	Spreading added technician capacity smoothly across every job.
OEM Replacement Parts	Variable	Apply 15.0% of revenue in the first year, falling to 13.0% by the fifth year.	Treating parts inventory as fixed monthly overhead.
Shipping and Freight Inward	Variable	Apply 5.0% of revenue in the first year, falling to 3.0% by the fifth year.	Ignoring inbound freight when repair volume rises.
Merchant Processing Fees	Variable	Apply 3.0% of revenue each year because card fees move with paid repair sales.	Using a flat monthly card fee in break-even math.
Shop Consumables and Adhesives	Variable	Apply 2.0% of revenue each year for glue, thread, rivets, and small repair supplies.	Burying consumables inside general overhead.
Utilities and Internet	Semi-variable	Start with the $450/month base, then review usage if longer shop hours or added stations raise utility load.	Assuming every utility dollar stays flat as throughput grows.

How does break-even change from a lean suitcase repair shop to base and full volume?

Scenario table

Here’s the quick math: lean volume still misses fixed overhead, the base case lands roughly at break-even, and the full case builds a cushion. Year 1 revenue is $326k with EBITDA of -$8k, so the first months of ramp still matter.

These are planning assumptions, not guarantees; actual results can move with repair mix, labor use, and demand.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean suitcase repair shop	$15.1k	$3.8k	$15.0k	75%	-$3.7k	Still below fixed overhead, so volume is the risk.
Base suitcase repair shop	$21.2k	$5.3k	$15.8k	75%	$0	Near break-even once Year 1 marketing is spread in.
Full-volume suitcase repair shop	$30.2k	$7.5k	$15.8k	75%	$6.8k	Leaves a solid cushion and funds the next hire.

What pushes a suitcase repair shop past break-even?

Stress test

Year 1 revenue clears the base break-even, but the cushion is not wide. A 15% demand drop, a 10% lift in fixed overhead, or parts and fees moving from 25% to 30% can shrink it fast; together, they can flip the shop into loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$254,000	$72,000 cushion	Year 1 clears break-even, so the shop has room to absorb launch noise.
Revenue shortfall	Revenue falls 15% from the Year 1 plan.	$254,000	$23,000 cushion	A 15% demand dip eats most of the buffer.
Fixed-cost increase	Fixed overhead rises 10%.	$279,000	$47,000 cushion	Payroll or rent creep tightens the floor fast.
Margin pressure	Variable expenses rise from 25% to 30% of revenue.	$272,000	$54,000 cushion	Parts inflation is the cleanest margin warning.
Combined pressure	Revenue falls 15%, fixed overhead rises 10%, and variable expenses rise to 30%.	$299,000	$23,000 gap	A weak launch plus cost creep can push break-even past Month 8.

Can you prove the repair volume, pricing, and cash cushion before you sign the workshop lease?

Founder checklist

Don’t sign the lease until the shop can prove 225 repairs a month, hold a $113 average ticket, and cover the $842K cash dip in Month 7. Break-even lands in Month 8, so the setup has to work before then.

1Demand Floor225 repairs/mo

Prove at least 225 repairs a month before you lock the lease, because that volume makes the Month 8 break-even path believable.

2Price Mix$113 / 75% CM

Price the work by billable hours, meaning chargeable time, so the wheel, handle, zipper, and lock mix lands near $113 and keeps about 75% after direct variable costs.

3Parts Flow45/25/20/10

Confirm OEM parts can support 45% wheel work, 25% handle work, 20% zipper work, and 10% lock work, because stock gaps slow turnaround and margin.

4Fixed Load$18.0K/mo

Workshop rent, utilities, insurance, software, SEO, janitorial, and Year 1 payroll total about $18.0K a month before variable costs, so the lease and staff plan have to fit that burn.

5Hire RampMonth 13

Hold off on extra technicians until turnaround targets are met, because the model does not add the junior technician until Month 13 and early hiring lifts cash burn too soon.

6Cash Runway$842K / $25

Minimum cash bottoms near $842K in Month 7, and Year 1 CAC is $25, so the launch budget has to fund the dip while keeping lead cost near plan.