![How to plan and track the budget of your athletic shoe store [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_6ac28ad4-cd8e-4906-a7b0-dbcbecf0c870.png?v=1715856372&width=1100)
If you don’t plan and track your athletic shoe store budget properly, you're setting yourself up for failure.
When we developed our strategy pack for athletic shoe store owners, we saw a lot of store owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial sales.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your store's finances around and set you on the path to success!
Get the budget tracker tailored for athletic shoe stores
Most athletic shoe store owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for athletic shoe stores
Here is an example of a (very) detailed budget for an athletic shoe store, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for retail space | $4,000 | $48,000 |
| Electricity | Power consumption for lighting and displays | $600 | $7,200 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Store Manager | 1 | $3,500 | $3,500 | $42,000 |
| Assistant Manager | 1 | $2,500 | $2,500 | $30,000 |
| Sales Associates | 4 | $2,000 | $8,000 | $96,000 |
| Cashier | 1 | $2,000 | $2,000 | $24,000 |
3. Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Shoe Inventory | Various brands and styles of athletic shoes | $15,000 | $180,000 |
| Accessories | Socks, insoles, laces, etc. | $2,000 | $24,000 |
| Display Materials | Shelves, stands, and mannequins | $500 | $6,000 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, newspaper ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of store equipment | $200 | $2,400 |
| Uniforms | Staff uniforms and name tags | $100 | $1,200 |
| Licenses & Permits | Business licenses and permits | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some athletic shoe stores make 5x more profit than you!
We have studied the strategies of the best athletic shoe stores in the world. Replicate them now!
What are the biggest expenses for an athletic shoe store?
Be mindful of these critical expenses. Here are five major costs every athletic shoe store owner needs to consider, along with some tips on how to manage them effectively.
- Inventory CostsStocking a wide range of athletic shoes can significantly impact your budget. Prices can vary based on brand, style, and seasonality. To keep these costs under control, focus on inventory management, negotiate better deals with suppliers, and avoid overstocking. It's easy to overspend by purchasing too many high-end models that may not sell quickly.
- Staffing CostsYour employees are essential for providing excellent customer service, but their wages, benefits, and training can be costly. This expense is always high because you need knowledgeable staff to assist customers and manage the store efficiently. Optimize labor costs by scheduling smartly, cross-training employees, and monitoring performance. However, be cautious not to underpay or overwork your staff, as this can lead to high turnover and poor customer service.
- Rent and UtilitiesPrime retail locations come with high rent, but they can attract more foot traffic. Utilities like electricity, heating, and water are necessary but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient lighting and climate control systems. Overspending often occurs when you choose a location that's too large or too upscale for your needs.
- MarketingPromoting your athletic shoe store is crucial, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Store Fixtures and Maintenance CostsThis includes everything from display shelves to point-of-sale systems. These are expensive because quality fixtures and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, functional fixtures and maintaining them regularly to avoid costly repairs. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your athletic shoe store?
Here are practical tips to help you, as an athletic shoe store owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Inventory Costs | Partner with multiple suppliers to negotiate better prices and diversify your stock with seasonal and trending items. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime, ensuring peak times are well-covered. |
| Utilities | Install LED lighting and energy-efficient HVAC systems to reduce energy consumption. |
| Marketing | Run social media contests for your store and collaborate with local fitness influencers for free exposure. |
| Store Supplies | Train staff on efficient use of supplies like cleaning products and packaging materials to reduce waste. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of store equipment like POS systems and display units. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location with good foot traffic. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers bringing their own bags. |
| Display Fixtures | Invest in high-quality, durable display fixtures that can withstand frequent use and reconfiguration. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with inventory management software. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff knowledgeable about products and customer service. |
| Waste Management | Implement a waste tracking system to minimize waste and recycle materials whenever possible. |
| Technology | Invest in multi-functional devices like tablets for inventory management and customer checkouts. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
| Advertising | Use digital advertising boards or QR codes for promotions to reduce printing costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs, especially for online orders. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce overstocking or stockouts. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Ambiance | Use a streaming service for background music and host local fitness events or workshops during off-peak times. |
Copy the tactics of the best athletic shoe stores in the world!
There are athletic shoe stores that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for an athletic shoe store
Yes, some expenses for your athletic shoe store are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Store Expense | Reason It's Useless |
|---|---|
| Luxury Store Fixtures | Overly lavish fixtures don't necessarily attract more customers and can be a drain on the budget. |
| Premium Shoe Brands | Unless you are a high-end boutique, most customers are satisfied with mid-range options. |
| Excessive Inventory | Stocking too many styles and sizes increases inventory costs and leads to more unsold items. |
| High-End Display Equipment | Top-of-the-line display equipment is not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your store. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exclusive Shoe Models | Stocking rare models can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Bags | Personalized shopping bags are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Store Decorations | Elaborate decorations are often ignored by customers and add to the cost. |
| High-End Display Cases | Luxury display cases are prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Signage Designs | Frequently redesigning signage is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Storage Solutions | Specialized storage solutions are often unnecessary and add to costs without a proportional benefit. |
Stop working with a tight budget for your athletic shoe store!
Managing a budget for an athletic shoe store when funds are tight can feel like an uphill battle. It's like being stuck in a race where any unexpected expense can trip you up.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always trying to catch up with expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest back into your store.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of athletic shoe stores just like yours. Get them now!
Make your athletic shoe store more profitable
We have studied the strategies of the best athletic shoe stores in the world. All their tactics are explained in our pack!
