Shoes are important accessories put on by all categories of people, from babies, children and adults. Sered with. Find a perfect shoe, find out how and what to do when something goes wrong and you need to repair it. This can be a viable venture because nobody wants to move with worn-out, torn, cut, or broken shoes. This project cost US$ 1030 working on about 436800 repairs annually and yielding annual revenues estimated at US $ 13104.
Process, Capacity and Technology
|Leather stitching machine||No||2||425||850|
|Shelves and Racks||No||2||15||30|
|Other Cutting instruments||No||10||3||30|
|TC of Machinery & Tools||1,030|
The process of repairing shoes is not out straight because depending on the extent of damage on the shoes. These could be broken heels and worn out soles, stitching, faded leather, loose straps or buttons or buckles or fasteners etc.
These determine what to be followed when doing repairs. The capacity 300 shoes per month and the technology involved is locally invented and therefore very affordable.
Capital Investment Requirement in $
- Production costs assumed 312 days per year with daily capacity of 300 repairs
- Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
- Direct costs include materials, supplies and all other costs that directly go into production of a product.
- A production month is assumed to have 26 days.
- Currency used is US Dollars.
Production and Operating costs in US$
Direct materials, supplies and costs
|Cost Item||Units||@||Qty/day||Pdn cost/ day||Pdn cost/ mth||Pdn cost/yr|
General Costs (Overheads)
|Selling & distribution||50||600|
|Utilities (Water, power)||35||420|
|Total Operating Costs||10534||12,6434|
Project product costs and Price structure in US$
|Item||Qty/day||Qty /yr||@||Pdn cost/yr||UPx||TR|
Profitability Analysis in US $
|Profitability Item||Per day||Per month||Per year|
|Less: Production and operating costs||41||1053.6||12,644|
New Shoes are quite expensive and with our terrain and broken walk ways, shoes get damaged quite often and thus need to repair them. These clinics therefore are often jammed with customers.
Source of Machinery:
Locally fabricated by Tonet Ltd Kanyanya Gayaza Rd, Tree Shade Ltd, Mwanga II Road Kisenyi Kampala and can also be sourced from China and India. Raw materials are locally available.
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