Expense Pie Chart for 2012

Before we start, I should post a few explanations on the chart.  Firstly and most importantly, this is one business, structured in our own particular way so take it with a grain of salt.  I’ve also compiled the various expenses into categories that make sense to me, but I’m sure can be confusing.  A few of the more / less obvious ones:

– Bank & Credit Card Fees including credit card processing fees, bank & credit card interest

– Exchange rate costs are basically losses due to the fluctuations in the exchange rate.  It’s pretty much a COGs expense (sort of, it’s calculated and fluctuates based on the exchange rate at the point that we sell the item).

– Import & Logistics Costs are mostly costs resulting from bringing the games over the border.  Again part of the Cost-of-Goods-sold realistically speaking

– Accounting, Legal & Insurance costs are so high due to the fact that we hire a bookkeeper; so their fees are included here.  In another company, that might be slotted under Payroll.

 

Financial Expenses Pie Chart 2012
Expenses Pie Chart 2012

As a comparison (of sorts); you should check out Black Diamond Games Blog Post on Game-o-nomics for a B&M store.  Note, our pie chart is based off expenses while theirs is based off revenue; so expect some differences.  Overall though, you can see our payroll expenses and COGs are much higher while our Rent costs are significantly lower.   Of course, our IT expenses are much higher and to make up for the shortfall in walk-in traffic, our Marketing Expenses have to be higher too.