The Role of Numbers: How to Make Your Stationery Business Profitable
Imagine an organized desk with products that inspire creativity and boost productivity, from colored markers to notebooks; behind every stationery item lies a world of percentages and sales.
In this #Cubblog we will explain how these numbers reveal the keys to success in the Mexican market, what the profit margin is on these products, and which items sell best.
Overview of the stationery sector in Mexico 2023
According to data published by Data México during the first quarter of 2023 in Mexico, a GDP of $2.92B MXN was recorded, which had a decrease of 10.5% compared to the previous quarter, which was $2.87B MX
In 2022, 317,032 economic units focused on this sector were registered, of which 313,751 units have 0 to 10 employees (55 fewer companies than in 2021), 3,036 have 11 to 50 employees (22 more companies than in 2021) and 156 have 51 to 100 employees (4 more companies than in 2021) and lastly, 89 companies have more than 101 employees (a decrease of 2 businesses)
Meanwhile, the states with the largest number of economic units in the retail stationery products category are:
- State of Mexico 53,634
- Mexico City 37,963
- Jalisco 22,356
Is it profitable to run a stationery e-Commerce?
If you are planning to open a stationery store but do not know what the profit margin is or whether it can become a profitable business… we share this #CubboTip 👉 expenses must be lower than your e-Commerce sales volume.
To calculate your profit margin or net income, you must take into account the manufacturing cost of the item, including expenses for water, electricity, staff, among others, the final selling price, and the profit.
First we will explain how to calculate your gross margins; in this case you must divide gross profit by total sales multiplied by 100. In a practical case where you had $3,000 in gross profit with sales of $7,000, you have a 43% gross margin.
On the other hand, the formula to calculate your net margin is to divide net income by gross income multiplied by 100, for example, if when selling your products during the month you obtained 2,500 MXN in net income and 5,000 MXN in gross income, with the net margin formula, you have a 50% margin.
While profitability depends on proper margin management, logistical efficiency also plays a major role. Having a specialized partner such as a fulfillment center in Mexico City allows online stationery stores to reduce operating costs and improve the customer experience by ensuring faster and more reliable deliveries.
👉 #CubboInsight A profitable stationery business typically has a 10% to 15% net margin on revenue
What are the best-selling stationery products?
These "best sellers" not only meet basic organization and writing needs, but also add a touch of personality to every task; the best-selling stationery items in Mexico are:
- Pens and pencils
- Notebooks and journals
- Highlighters and colored markers
- Folders
- Adhesive tape and glue
These items are VAT-exempt!
Stationery products that are exempt from IVA in Mexico are:
- Pencils and colored pencils
- Ballpoint pens and markers
- Crayons and chalk
- Erasers and pencil sharpeners
- Notebooks and journals
- Bond paper and graph paper
- Textbooks and reading material
- Folders and binders
- Glue sticks and liquid glue
- Basic calculators
- Rulers and protractors
- School scissors
- Backpacks and pencil cases
- Construction paper and cardstock
- Coloring books and art supplies
However, remember that these materials may vary by year depending on SAT tax regulations
The diversification of products and services in the stationery field has given entrepreneurs opportunities to reach a wide range of customers; as long as these companies have a strategic vision, focus on quality and customer service, they will be well positioned to take advantage of the business opportunities offered by the stationery sector.
