What Does It Cost To Run Contact Lens Retail Store?
Contact Lens Retail Store Running Costs
Expect the monthly running costs for a Contact Lens Retail Store to average near $70,000 in 2026, driven primarily by fixed payroll and marketing overhead Your total fixed operating expenses (OpEx) are $19,300 per month, plus another $42,083 in monthly wages, totaling over $61,000 before inventory This high fixed base means you must hit scale quickly the model forecasts $530,000 in Year 1 revenue but a negative EBITDA of $386,000 You must secure a minimum cash buffer of $334,000 to cover operations until the projected break-even date in February 2027 This guide breaks down the seven core recurring costs, from inventory procurement (115% of revenue) to the $8,000 monthly digital marketing fee, so you understand how to manage cash flow effectivly
7 Operational Expenses to Run Contact Lens Retail Store
#
Operating Expense
Expense Category
Description
Min Monthly Amount
Max Monthly Amount
1
Payroll and Staff Wages
Personnel
Total monthly payroll in 2026 is $42,083, covering 5 core FTEs including a $145,000 CEO and $90,000 for two Customer Support Representatives
$42,083
$42,083
2
Wholesale Inventory Procurement (COGS)
Cost of Goods Sold
Inventory costs represent 115% of revenue in 2026, which is the largest variable expense directly tied to sales volume
$0
$0
3
Fulfillment and Logistics
Operations
Shipping, packing, and handling costs are projected at 75% of revenue, decreasing slightly to 55% by 2030 due to scale efficiencies
$0
$0
4
Warehouse Lease
Occupancy
The fixed monthly cost for the Operations and Logistics Lead's facility is $5,500, regardless of sales volume
$5,500
$5,500
5
Digital Marketing Agency Fee
Sales & Marketing
A substantial fixed investment of $8,000 per month is allocated to the agency to drive the necessary visitor traffic and conversions
$8,000
$8,000
6
Core Technology Stack
Technology
Monthly software expenses total $4,300, combining E-commerce Platform Hosting ($2,500), Prescription Verification Service ($1,200), and Customer Support Software ($600)
$4,300
$4,300
7
Insurance and Legal Compliance
G&A
General administrative fixed costs for regulatory compliance and business insurance are budgeted at $1,500 per month
$1,500
$1,500
Total
Total
All Operating Expenses
$61,383
$61,383
What is the total monthly running cost budget required for the first 12 months?
The total monthly running cost budget required to support the projected $44,000 revenue target for the Contact Lens Retail Store in 2026 is $44,800, which covers fixed overhead plus variable fulfillment costs associated with that sales volume. If you're planning out staffing and tech stacks for this scale, understanding the initial setup is key, much like figuring out how to launch a contact lens retail store business, which you can review here: How To Launch Contact Lens Retail Store Business?
Fixed Overhead Burn
Fixed monthly overhead, covering payroll and core OpEx, is estimated at $25,000.
This covers salaries, software subscriptions, and baseline marketing spend.
If revenue drops below $44k, this fixed cost dictates your immediate cash burn rate.
You need $300,000 in runway just for this fixed cost component across 12 months.
Variable Cost Impact
Variable costs, like fulfillment and payment processing, run at 45% of revenue.
For $44,000 in sales, variable costs total $19,800 monthly.
Contribution margin (what's left after variable costs) is 55%.
The total budget covers fixed costs plus the variable cost required to generate that $44k.
Which cost categories represent the largest recurring monthly expenses?
The largest recurring expense for the Contact Lens Retail Store will overwhelmingly be the Cost of Goods Sold (COGS), as this directly determines your 81% contribution margin. To understand how to optimize this, you should review metrics like What Are The 5 KPIs For Contact Lens Retail Store?, but inventory acquisition is the primary drain on cash flow. If COGS runs high, the remaining 19% must cover everything else, including payroll and marketing fees.
Inventory's Share of Revenue
COGS must be kept below 19% of revenue to cover all operating costs.
If inventory costs hit 65% of sales price, only 16% remains for overhead.
Focus on supplier negotiation to lower the per-unit cost immediately.
This cost category dictates your gross profit potential before any salaries.
Controlling Overhead Costs
Marketing spend must be tracked against Customer Acquisition Cost (CAC).
Payroll, covering support and fulfillment, is defintely the largest fixed cost.
If payroll exceeds 10% of revenue, overall profitability shrinks fast.
Keep marketing spend below 5% to maintain margin health.
How much working capital (cash buffer) is necessary to cover the negative cash flow until break-even?
You need $334,000 in cash to bridge the gap until the Contact Lens Retail Store hits profitability, which the current model projects for February 2027. This buffer covers all operating losses incurred before that date, so managing the burn rate closely is defintely critical right now, much like tracking the specific metrics discussed in What Are The 5 KPIs For Contact Lens Retail Store?. Honestly, this runway calculation is the single most important number for your next funding round.
Required Cash Buffer
Minimum cash required is $334,000.
This covers negative cash flow until BE.
Break-even date is projected for February 2027.
This buffer must be secured now.
Actions to Shorten Runway
Lower customer acquisition cost (CAC).
Increase subscription plan adoption rate.
Improve customer lifetime value (LTV).
If onboarding takes 14+ days, churn risk rises.
If revenue is 20% below forecast, what specific fixed costs can be immediately reduced or deferred?
If revenue for the Contact Lens Retail Store falls 20% short of forecast, you must immediately reduce discretionary fixed spending, primarily targeting the $8,000 Digital Marketing Agency Fee within the total $19,300 fixed OpEx (Operating Expenses).
Immediate Fixed Cost Targets
Pause the $8,000 monthly agency fee immediately.
This marketing cost is discretionary and adjustable now.
Total fixed overhead is $19,300 per month.
Renegotiate or defer any non-essential software contracts.
Contextualizing the $19,300 Burden
After cutting marketing, assess remaining core costs.
A 20% revenue drop hits cash flow hard.
If onboarding takes too long, churn risk rises defintely.
The total fixed operating burden, dominated by $42,083 in monthly payroll, exceeds $61,000 per month before inventory costs are factored in.
Operators must secure a minimum cash buffer of $334,000 to cover projected negative cash flow until the business reaches its break-even date.
The financial model forecasts that the business will require approximately 14 months of operation to achieve the projected break-even point in February 2027.
Due to the high fixed cost base, rapid scaling of revenue is the primary lever required to overcome the projected $386,000 negative EBITDA in Year 1.
Running Cost 1
: Payroll and Staff Wages
2026 Payroll Snapshot
Your 2026 payroll commitment lands at $42,083 per month, covering 5 full-time employees (FTEs). This budget includes key leadership and direct customer interaction roles. This is a significant fixed operating cost you must cover before generating sales.
Staff Cost Drivers
This payroll estimate sets the baseline for your 2026 operational capacity. It specifically funds one CEO at $145,000 annually and two Customer Support Representatives (CSRs) budgeted at $90,000 combined for the year. The remaining two FTE salaries make up the rest of the $42,083 monthly draw.
5 core FTEs budgeted.
CEO salary included.
Two CSRs funded.
Managing Headcount Costs
Personnel costs are sticky, so hiring pace matters more than salary negotiation right now. Avoid hiring the final two FTEs until revenue reliably covers fixed overhead plus 20% margin. Consider fractional roles or contractors until order volume justifies full-time commitment. Defintely watch utilization rates.
Stagger hiring past breakeven.
Use contractors initially.
Monitor utilization closely.
Fixed Cost Reality
This $42,083 monthly payroll is a fixed drain on cash flow, irrespective of your contact lens sales volume. You need substantial, predictable revenue streams, like subscription renewals, just to cover this expense before paying for inventory or marketing.
Your cost of goods sold (COGS) is currently projected to exceed sales, hitting 115% of revenue in 2026. This means for every dollar you sell, you spend $1.15 just buying the lenses. You must aggressively lower procurement costs or raise prices immediately to fix this structural issue.
COGS Breakdown
Wholesale Inventory Procurement, or COGS, covers the direct cost of the contact lenses you buy from suppliers before selling them. Since it hits 115% of revenue in 2026, this figure is based on your projected wholesale purchase price relative to expected sales volume. You need precise unit economics to understand this problem.
Unit cost × units sold = total COGS.
This is your primary variable cost.
It dwarfs other variable expenses.
Lowering Procurement
You can't sell lenses if you don't have them, but 115% COGS is unsustainable; you need a gross margin, not a gross loss. Negotiate better terms with suppliers now, even if it means committing to higher initial purchase volumes. Also, watch Fulfillment costs, which are projected at 75% of revenue.
Demand volume discounts from suppliers.
Review supplier contracts quarterly.
Don't overstock slow-moving brands.
Margin Reality Check
If you sell $100 in lenses, you spend $115 just acquiring them, before accounting for $75 in shipping and $42 in payroll (based on 2026 run rate). Your current model guarantees a significant loss on every transaction. You defintely need a supplier cost reduction plan targeting at least 15% savings to approach break-even inventory costs.
Running Cost 3
: Fulfillment and Logistics
Fulfillment Cost Drag
Fulfillment costs are massive right now. Shipping, packing, and handling start at 75% of revenue. This cost center will only drop to 55% by 2030, showing that logistics efficiency gains are slow for this business model. You need to watch this number closely.
Cost Inputs
This 75% figure covers everything to get the lenses to the customer: postage, packing materials, and warehouse labor for picking orders. Since it's a percentage of revenue, you must model revenue growth to see the absolute dollar impact. What this estimate hides is the initial inefficiency before volume kicks in.
Revenue projections for the year.
Carrier rate cards.
Packing material unit costs.
Cutting Shipping Waste
Reducing 75% takes serious volume leverage, especialy since Inventory Procurement (COGS) is already 115% of revenue, meaning you lose money on every initial sale before fulfillment hits. Negotiate carrier contracts once you hit 10,000 shipments monthly. Avoid over-packing small items.
Bundle subscriptions to increase order size.
Audit carrier dimensional weight charges.
Centralize packing material purchasing.
The 2030 Reality
Even achieving the 55% target by 2030 requires massive scale because the 20-point drop only happens over five years. If you can't drive down the initial 75% faster than projected, your gross margin will remain negative for longer than planned. This is a cash flow killer.
Running Cost 4
: Warehouse Lease
Fixed Warehouse Cost
Your facility lease is a non-negotiable fixed overhead of $5,500 monthly, regardless of how many contact lens orders you fulfill. This cost hits your profit and loss (P&L) statement immediately every month. You must generate enough gross profit to cover this baseline expense before you start realizing actual operating profit.
Lease Cost Breakdown
This $5,500 covers the physical space managed by your Operations and Logistics Lead for inventory storage and fulfillment preparation. It is a fixed cost, meaning it sits outside your variable expenses like inventory procurement (which runs at 115% of revenue) or fulfillment fees. You must budget this $5,500 every month to keep the lights on in the warehouse.
Covers facility space.
Fixed at $5,500 monthly.
Independent of sales volume.
Managing Fixed Space
Since the rate is fixed, you manage this by optimizing space utilization, not by cutting the monthly payment immediately. A common mistake is signing a lease that's too large based on optimistic Year 3 volume, not current needs. You need sales density high enough to justify the square footage you're paying for.
Ensure space matches Year 1 needs.
Negotiate renewal terms early.
Avoid paying for unused capacity.
Hurdle Rate Pressure
This lease creates immediate hurdle rate pressure on your unit economics. If your contribution margin per order isn't high enough to cover this $5,500 plus the $8,000 marketing spend, you're losing money just by operating. You need sales volume high enough to absorb this fixed drain, defintely before you consider adding more headcount.
Running Cost 5
: Digital Marketing Agency Fee
Agency Spend Fixed
This $8,000 monthly agency fee is a critical fixed cost dedicated solely to acquiring new customers for your online lens store. Since this is not tied to sales volume, you must rigorously track its return on investment (ROI) to justify the spend against variable costs like inventory (115% of revenue). It's the engine driving top-of-funnel activity.
Agency Cost Inputs
This $8,000 covers the agency managing all paid digital channels to bring potential buyers to your site. To validate this budget, you need clear targets for Cost Per Acquisition (CPA) and Customer Lifetime Value (CLV). This expense is budgeted monthly, separate from the $4,300 tech stack or the $5,500 warehouse lease.
Drive visitor traffic goals.
Ensure conversion rate targets.
Fixed monthly commitment.
Managing Traffic Spend
Since this is a large fixed marketing outlay, watch out for poor channel allocation or inflated CPAs. If the agency delivers traffic but conversions lag due to a weak site experience, you waste money. Negotiate performance tiers rather than just flat fees when possible. If onboarding takes 14+ days, churn risk rises defintely.
Benchmark CPA vs. CLV.
Review channel attribution monthly.
Avoid agency lock-in clauses.
Fixed Cost Pressure
At $8,000, this marketing fee represents a significant hurdle before you cover other large fixed costs like payroll ($42,083). You need substantial revenue just to cover these overheads before variable costs like inventory (115% of revenue) start eating into margin. Focus on improving the conversion rate from agency traffic immediately.
Running Cost 6
: Core Technology Stack
Tech Stack Baseline
Your fixed monthly software overhead clocks in at $4,300, which is non-negotiable for launching this digital retail operation. This spend covers the storefront, regulatory compliance checks, and handling customer inquiries. That's a defintely cost before your first sale hits the platform.
Cost Breakdown
This $4,300 monthly spend supports three critical, non-negotiable functions for selling regulated medical devices online. The largest component, $2,500, is for the e-commerce hosting itself. You must budget for the $1,200 mandated verification service and the $600 for customer help tools.
Hosting: Platform tier cost.
Verification: Per-transaction or monthly license.
Support: Seat count or volume tier.
Cost Control Tactics
Reducing this fixed tech cost requires careful scoping before signing annual contracts. Hosting negotiations are key; look for discounts if you commit to twelve months upfront instead of month-to-month. Support software can often be bundled if you choose an integrated CRM suite.
Audit verification service usage.
Negotiate hosting tier discounts.
Consolidate support tools now.
Fixed Cost Pressure
Because this $4,300 is fixed, you need high order density early on to cover it before payroll hits. If your average monthly hosting commitment is $2,500, you must ensure your marketing spend drives enough volume to justify that baseline infrastructure cost.
Running Cost 7
: Insurance and Legal Compliance
Compliance Budget
You need $1,500 monthly budgeted for regulatory compliance and business insurance right from day one. This fixed administrative cost covers necessary liability protection and adherence to regulations governing prescription handling. It's a non-negotiable overhead that must be covered before you hit break-even.
Cost Breakdown
This $1,500 monthly budget covers required general liability and professional errors and omissions insurance for selling regulated medical devices online. For a contact lens platform, this also includes fees for maintaining regulatory adherence, like prescription verification processes. You confirm this amount via annual policy quotes.
General liability coverage.
Professional liability quotes.
Compliance filing fees.
Cost Control Tactics
Since this cost is fixed at $1,500, focus on aggressive shopping during renewal cycles to keep it flat. Bundling general liability with cyber insurance often yields savings. A common mistake is skimping on errors and omissions coverage when dealing with prescriptions.
Shop quotes annually.
Bundle liability policies.
Review coverage limits yearly.
P&L Context
Compared to your $8,000 marketing spend or $4,300 tech stack, this $1,500 is small, but it's a fixed drain on contribution margin every month. If your gross margin is tight due to 115% COGS, this fixed cost hits profit hard. You defintely need to ensure this coverage is adequate.
