Here I share two important figures that I got from, Christian Faivre, a man with 35 years of experience in running meat plants in South Africa shared with me.
|Staff – should be below 32.5% of GP||32,50%||R 6,50|
|Energy – in SA around 15 to 20%. I used 30% in Nigeria||30%||R 6,00|
The thinking is simple. The above shows the break-even calculation. Reduce the total expenses now to 10% and you will have a very profitable business.
Keep total salaries at no more than 32.5% of total expenses and power should be between 15 and 20% of the same. Here in Lagos, I use 30% due to the extremely high cost of power.