Tailoring Supply Store Break-Even: $19K Monthly Sales Target

Fixed costs $15.5K/mo Year 1 overhead

Contribution margin 84% After item cost

Break-even revenue $18.6K/mo Monthly target

Break-even timing Month 34 Model breakeven

Break-even calculator

Compare monthly revenue, variable expenses, and fixed costs to see how close the tailoring supply shop is to break-even.

Lean Base Full

Monthly revenue This is the sales line that creates the margin left for fixed costs. $ Slow month Strong month Variable expenses Use the costs that rise with each sale, like merchandise cost and sale fees. $ Tight costs Heavy costs

Money available to cover fixed costs $23,800 $28,000 revenue - $4,200 variable expenses

Margin ratio

85%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that contribution margin has to cover. $ Lean overhead Full overhead

Break-even chart Revenue Total costs

Which tailoring supply store expenses are fixed, and which move with sales?

Cost classification

Break-even is only useful if overhead stays separate from sales-linked spending. Treat rent and planned staffing as capacity costs, then subtract merchandise, workshop materials, card fees, and sale commissions before measuring contribution.

Expense	Cost	Break-Even Treatment	Common Mistake
Store Rent	Fixed	Include $4,000 per month in overhead from Month 1 through Month 60.	Tying rent to visitor count instead of store capacity.
Planned staffing payroll	Semi-fixed	Treat first-year staffing as $10,250 per month, then reset when FTE levels step up.	Modeling payroll like a per-sale fee.
Utilities	Semi-variable	Use the $550 monthly base, then add usage if workshops drive higher power or water bills.	Leaving utilities fully fixed as class volume grows.
POS & E-commerce Software	Fixed	Include $150 per month as recurring operating overhead.	Putting software below gross margin as if it rises with each order.
Wholesale Merchandise Cost	Variable	Apply 12.0% of sales in the first year, falling to 10.0% by the fifth year.	Using inventory purchases instead of replenishment tied to sales.
Workshop Material Cost	Variable	Apply 1.5% of sales in the first year, declining to 0.8% by the fifth year.	Ignoring supplies used in paid workshop sessions.
Payment Processing Fees	Variable	Subtract 2.5% of sales in the first year before contribution margin.	Counting card fees as a small fixed bank charge.
Marketing Per Sale Commission	Variable	Apply 3.0% of sales in the first year, easing to 2.0% by the fifth year.	Mixing sale commissions into the fixed marketing budget.

How does break-even shift from a lean neighborhood shop to a full assortment retail model?

Scenario table

Lean is the tightest setup, base sits near the line, and full format has the best cushion. That matches the EBITDA path from -$173k in Year 1 to -$11k in Year 3 and $624k in Year 5.

Planning figures only; traffic, conversion, and repeat buying can move break-even fast.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean neighborhood shop	$19,148	$3,638	$15,510	81.0%	$0	Any traffic dip pushes it back into loss.
Base storefront	$26,993	$4,616	$22,377	82.9%	$0	This is the line, so small misses matter.
Full assortment retail model	$32,169	$4,825	$27,343	85.0%	$0	This has the most cushion if repeat orders hold.

What breaks the tailoring supply store's break-even plan?

Stress test

Year 1 break-even starts at $19,148 a month, and the bar rises as payroll grows. Weak weekday traffic hurts, but margin slip and hiring ahead of sales density move the target even faster.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; Year 1 fixed overhead is $15,510 a month and contribution margin is 81.0%.	$19,148	$0 cushion	Launch months need at least this much sales.
Revenue shortfall	Weekday traffic and repeat buying stay flat, so sales miss the Year 3 break-even step.	$26,993	$7,845 gap	Flat traffic delays the next break-even step.
Fixed-cost increase	Year 5 payroll rises to $27,343 a month while margin stays on plan.	$32,169	$13,021 gap	More payroll pushes break-even well above launch.
Margin pressure	Year 3 fixed overhead holds at $22,377 a month, but contribution margin slips back to 81.0%.	$27,625	$632 gap	A small margin slip adds back sales pressure.
Combined pressure	Year 5 fixed overhead of $27,343 a month is paired with 81.0% contribution margin.	$33,757	$1,588 gap	Slow sales and heavier payroll leave little room.

What should you verify before you sign the lease for this tailoring supply store?

Founder checklist

Before you sign the lease, test whether this location can support the Year 1 traffic, the $15,510 monthly overhead plan, and the Month 34 break-even path. If the site cannot fund those numbers, wait; the cash burn is too high for an underfilled store.

1Traffic proof275/week

Verify the site can draw 275 weekly visitors and convert them at the modeled 9.0% rate, or break-even will slip fast.

2Site fitParking + visibility

Check parking, street visibility, workshop space, supplier terms, and reorder timing so walk-ins and stock flow can support sales.

3Overhead load$15.5K/mo

Make sure rent, utilities, software, cleaning, and Year 1 payroll stay inside the $15,510 monthly overhead plan before you commit.

4Margin mix84.1% CM

Confirm the sales mix still supports about 84.1% contribution margin after 10.425% merchandise and material cost plus 5.5% processing and commission fees.

5Opening stack$79.8K / 3.0 FTE

Fund the $79,800 build-out and open with 3.0 Year 1 FTE, plus POS, inventory, email, and e-commerce tools from day one.

6RunwayMonth 34 / $399K

Do not sign the lease unless you can carry the store to Month 34 break-even and hold the $399,000 minimum cash cushion.