THE MARKET PROFITABILITY CALCULATOR

THE MARKET PROFITABILITY CALCULATOR: A Simple ROI Guide for Australian Stallholders DOWNLOAD MPC HERE:https://drive.google.com/file/d/1lWq6y4KqNBGxu6kU9liYzAbAfAEwvQbU/view?usp=sharing Running a market stall can be one of the most rewarding ways to grow a business in Australia. It is also one of the most unpredictable. Foot traffic, weather, location, competition and your product mix all influence how much money you will actually take home. This guide gives you a clear, practical method to calculate whether a stall is likely to be profitable before you book it, and a way to review exactly how you performed after each market day. This is a simple, user-friendly calculator built for new and growth-phase traders. Everything is explained in plain English, with realistic examples based on the way Australian markets operate. You can copy the formulas into a notebook, spreadsheet or phone and use them for every market you trade at. QUICK SNAPSHOT: THE SIMPLE ROI FORMULA Net Profit = Revenue – (Stall Fees + Stock + Travel + Time + Other Costs) ROI (%) = (Net Profit ÷ Total Costs) × 100 If total costs for a day are $250 and you make $400 in revenue, your net profit is $150 and ROI is 60%. This simple framework is the backbone of the entire guide. SECTION 1 — UNDERSTAND ALL YOUR STALL COSTS Most traders underestimate their real costs. When that happens, a “busy” market can still produce a disappointing financial result. To avoid surprises, you must calculate every cost category that affects your day: 1. Stall fees The price you pay for the space itself, plus any extras the market charges. 2. Stock (COGS) Your cost of goods sold — the cost of producing or buying the items you will sell. 3. Travel Fuel, vehicle wear, tolls, parking and any special access charges. 4. Time (your own labour) Your hours have value. You must include preparation, travel, setup, trading, pack-down and admin. 5. Extra overheads Card fees, bags, packaging, event-specific insurance, marketing spend and anything else needed for that particular market. Once these are captured accurately, the profitability picture becomes far clearer. SECTION 2 — STALL FEES (WHAT TO INCLUDE) Stall fees differ depending on state, region, market size, product category and whether the stall is indoors, outdoors or part of a night market. The ranges below reflect real Australian patterns: Community / Regional markets: typically $30–$80 per day Suburban / City markets: commonly $70–$200 per day Premium night / food / tourist markets: $150–$400+ per day, especially for food vendors These are examples only. Always check the exact market operator’s schedule. In addition to the base stall fee, include: Power charges Corner premiums Table or trestle hire Chair hire Per-event insurance if the market requires it Any compulsory marketing or admin levy Formula: Stall cost for the day = Stall fee + All stall extras SECTION 3 — STOCK AND PRICING (COGS AND MARGINS) COGS (Cost of Goods Sold) is the total cost of the items you bring to sell. This includes materials, ingredients, packaging required to make the product, or the wholesale purchase price if you bought goods ready-made. Common pricing references (not rules): Keystone pricing (many retail stalls): Selling price ≈ 2 × wholesale cost → ~50% gross margin. Retail margins (general craft/merch): often 20–40% gross margin depending on competition and category. Food stalls: Many pricing guides suggest aiming for 28–35% food cost, meaning ingredients are 28–35% of the menu price. The remaining 65–72% covers labour and overheads. Use these as starting points to assess whether your pricing is strong enough. Formulas: Stock cost (COGS) = Units brought × Cost per unit Expected revenue from stock = Units expected to sell × Selling price per unit Gross profit on stock = Expected revenue – Stock cost Break-even units Break-even units = (Stock cost + All other costs) ÷ Average selling price per unit This shows exactly how many units you need to sell before making any profit. SECTION 4 — TRAVEL (FUEL, VEHICLE, PARKING, TOLLS) Travel is more than petrol. Your vehicle experiences wear, maintenance, tyres, insurance and depreciation. A simple and widely used approximation is the ATO cents-per-kilometre rate, which at the time of writing is around 88 cents per km. This rate is designed to cover the running costs of an average vehicle. Traders should always check the current ATO rate, and adjust if using a van or towing a trailer with higher costs. Formulas: Return distance (km) = 2 × One-way distance to the market Vehicle running cost (approx.) = Return distance × 0.88 (or chosen rate) Travel cost for the day = Vehicle running cost + Parking + Tolls + Any special access fees This keeps travel costs consistent and easy to estimate. SECTION 5 — TIME (PAYING YOURSELF PROPERLY) Your time is a real business expense. Many traders forget to include it and dramatically overestimate their profitability. As a reference point, the National Minimum Wage is around $25/hour at the time of writing. Traders can use this or a higher rate to reflect their skill, experience or opportunity cost. Include all time spent: Product prep Packing stock Loading the car Driving to the market Setup Trading hours Pack-down Return travel Basic admin and restocking notes Formula: Total hours for the market = Sum of all hours above Time cost = Total hours × Chosen hourly rate If a trader works 12 hours and only takes home $50 profit, the real return is under $5/hour — a signal something must change. SECTION 6 — OTHER OVERHEADS (LITTLE COSTS THAT ADD UP) These often determine whether a day is profitable or not. Examples include: Card processing fees (percentage + per-transaction component) Bags, wrapping, boxes, napkins, stickers, labels Extra cleaning or waste materials Per-event public liability insurance, if required Any market-specific marketing spend Summarise these in the calculator as: “Other overheads for the day” SECTION 7 — ESTIMATING CUSTOMERS AND REVENUE This part is always an estimate, but a structured estimate is far more accurate than guessing. Three concepts: Foot traffic past your stall Ask organisers for attendance numbers. Or measure traffic yourself: count for 10–15 minutes and multiply by the number of equivalent intervals in the market day. Conversion rate — how many passers-by buy something Higher-ticket items (e.g. $50+): often 1–5% of passers-by Food/coffee/low-ticket items: often 5–20% These are rough working ranges, not guarantees. Average spend per customer Many stalls average $10–$20 per customer Premium handmade stalls may average higher Formulas: Expected customers = Foot traffic × Conversion rate Expected revenue = Expected customers × Average spend per customer Micro-example: If 1,000 people pass your stall and your estimated conversion rate is 3%, you expect: 30 customers If your average spend is $18, expected revenue ≈ $540 Changing only one assumption can dramatically shift results. SECTION 8 — THE SIMPLE STALL PROFITABILITY CALCULATOR Below is a clean checklist you can copy into a notebook or spreadsheet. Inputs (you fill these in) F = Stall fee E = Extra stall costs (power, table hire, insurance, etc.) C = Stock cost (COGS for this market) T = Travel cost (km × rate + parking/tolls) H = Time cost (hours × hourly rate) O = Other overheads (card fees, packaging, etc.) N = Expected customers S = Average spend per customer Calculator outputs 1. Expected revenue R = N × S 2. Total cost for the day Total cost = F + E + C + T + H + O 3. Net profit (before tax) Net profit = R – Total cost 4. ROI percentage ROI (%) = (Net profit ÷ Total cost) × 100 5. Break-even revenue Break-even revenue = Total cost 6. Break-even customers Break-even customers = Total cost ÷ S All formulas should read clearly even to a first-time trader. SECTION 9 — WORKED EXAMPLES Both examples below use typical suburban/city market scenarios, reflecting fees and sales that many traders encounter. These are illustrative only. EXAMPLE A — HANDMADE CANDLE STALL Scenario A trader books a suburban Sunday market with moderate foot traffic. Stall fee (F): $90 Power/table extras (E): $10 Stock cost (C): 50 candles at $6 cost each = $300 Round-trip distance: 40 km → 40 × 0.88 ≈ $35 travel cost (T) Total time: 9 hours × $25/hr = $225 (H) Other overheads (O): $18 (card fees + bags) Expected performance Estimated foot traffic: 1,200 Conversion rate: 3% → 36 customers Average spend (S): $25 Expected revenue (R) 36 × $25 = $900 Total cost F 90 E 10 C 300 T 35 H 225 O 18 Total = $678 Net profit 900 – 678 = $222 ROI 222 ÷ 678 = 32.7% Break-even revenue = $678 Break-even customers = 678 ÷ 25 ≈ 28 customers The trader expects 36 customers, so they clear break-even by eight sales. If the conversion rate drops to 2%, the outcome changes dramatically: 1,200 × 2% = 24 customers → Revenue = $600 → Loss of $78 This shows why forecasting conversion rate matters. EXAMPLE B — FOOD STALL (BURGERS OR NOODLES) Scenario A food vendor trades at a busy evening/night market. Stall fee (F): $230 Power/waste fees (E): $40 Stock cost (C): $550 ingredients (typical 30–35% food cost for expected sales) Round-trip travel cost (T): ≈ $50 Labour/time (H): 12 hours × $30/hr = $360 Other overheads (O): $40 (card fees, packaging, napkins) Expected performance Foot traffic estimate: 3,000 Conversion rate: 6% → 180 customers Average spend (S): $15 Expected revenue (R) 180 × $15 = $2,700 Total cost F 230 E 40 C 550 T 50 H 360 O 40 Total = $1,270 Net profit 2,700 – 1,270 = $1,430 ROI 1,430 ÷ 1,270 ≈ 112% Break-even customers = 1,270 ÷ 15 ≈ 85 serves Expected customers (180) are well above break-even, which is why many food stalls prefer high-traffic night markets — despite high fees, the volume can create strong profitability. SECTION 10 — HOW TO USE THIS CALCULATOR IN REAL LIFE The calculator works best in two stages: Before booking a market Use realistic estimates for foot traffic, conversion, time and stock. Plug in the numbers to see whether the stall is likely to be profitable. Compare multiple markets and choose those with the strongest forecast ROI. After each market Replace estimates with actual numbers. Capture real customer count, actual revenue and real expenses. Compare different markets, seasons and product mixes. Adjust pricing, stock levels and market selection based on performance. Over time, your own data becomes the most valuable indicator of where you should trade. SECTION 11 — COMMON MISTAKES AND QUICK FIXES 1. Ignoring time cost Many traders think, “As long as I make a little profit, it's fine.” But if your hourly return is $5, the business model needs adjusting. Fix: Always include total hours × hourly rate. 2. Underestimating stock costs Bringing too much stock ties up cash and inflates costs. Fix: Track sell-through rates and bring tighter quantities next time. 3. Forgetting travel, tolls, parking and packaging Small costs add up quickly. Fix: Add a dedicated “other overheads” line and update it every market. 4. Assuming busy markets equal better sales Foot traffic does not always convert into buyers. Fix: Estimate — and later measure — your conversion rate. 5. Pricing too low Some traders underprice to compete. This rarely works. Fix: Use margin references (keystone, food-cost %), then adjust for your real costs. SECTION 12 — FINAL CHECKLIST Print or save this list: Have you counted all your costs? Do you know how many customers you need to break even? Do you know your average spend per customer? Does your pricing cover stock + time + overheads? Did this stall pay you your target hourly rate? Is this market stronger or weaker than alternatives? Are you recording results so decisions improve each month? SECTION 13 — HELPFUL REFERENCE LINKS These links provide neutral, factual background information. (Always confirm the most current rates or policies.) Australian Taxation Office — Cents per Kilometre Method https://www.ato.gov.au Fair Work Ombudsman — National Minimum Wage https://www.fairwork.gov.au ASIC / business.gov.au — Understanding Business Costs & Margins https://www.business.gov.au No endorsements are made for any specific business, brand or provider. DOWNLOAD MPC HERE: https://drive.google.com/file/d/1lWq6y4KqNBGxu6kU9liYzAbAfAEwvQbU/view?usp=sharing