WHAT ARE MY PROFITS?

You will be operating a franchise of a brand name that has been dealing with many of the same suppliers since the early 80’s and beyond. We have established impeccable relationships that translates to better pricing which increases profitability of all the goods being sold. You will be required to purchase all your catalog product directly through Jamin Leather® at virtually the same or better prices than you can get if ordering directly from a brand supplier. As outlined in the FDD, your franchise will have some liberties to order product directly from third party vendors to sell higher profit products.

Retail margin is the percentage of gross profit a store makes on an item. It’s calculated by subtracting the cost of the item from its sale price, dividing that number by the sale price, and then multiplying by 100. For example, if an item sells for $100 and the store paid $50 for it, the retail margin is 50%.Here is an estimate rage of margins available on our retail merchandise:

• Estimated average = 59% – Typically 55-65% on leather apparel like Jamin Leather® and other name brand goods.
• Estimated average = 61% – Typically 55-65% on leather sale merchandise which can include jackets, bags, shorts, halters and more. 
• Estimated average = 63% – Typically 55-70% on leather accessories which can include wallets, belts, armbands, bags, purses, etc. 
• Estimated average = 66% – Typically 60-80% on third party vendor products includes sunglasses, key rings, dew rags, figurines, etc. 
• Estimated average = 95% – Typically 90-100% on sewing services if available at your location.

High margins translates to higher profits and better chances for success to pay for overhead including rent, payroll, utilities and an ability to restock easily and quickly.

All retail prices are based upon what the market will bear, as well as determined by the franchise management. Franchisees will not be allowed to sell catalog product (product offered on the website) at a reduced or inflated price. Franchisees must respect the prices across all channels for consistency. But, on the other hand, Franchisees will have the liberty to price non-catalog product according to the market or location. The Franchisor will also suggest best prices for the non-catalog products, but will be required to match offers by the franchisor in any marketing materials or detailed on it’s corporate website.