What Are the Monthly Running Costs of a Lighting Dealership?
In a lighting dealership the electricity bill isn’t an ordinary line. The display burns constantly, consuming both the bill and fitting life — and both come off the margin together. 💡
Short answer: a mid-sized dealer runs at ₺50K to ₺150K a month.
How the money splits, fixed-versus-variable, three inflating lines, break-even and a fit check follow below.
Where does the money go?
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- Fixed costs
- Variable costs
- The invisible cost: a dated display
One at a time.
Fixed costs
Store rent ₺16-45K, staff (1-3 people) ₺24-72K, vehicle fixed costs ₺4-11K, accounting and insurance ₺3-7K. 📊
Variable costs
Display electricity ₺4-14K, fuel and delivery ₺3-10K, packaging and consumables ₺1-3K. Display electricity runs markedly higher here than in other sectors and tracks floor size directly.
The invisible cost: a dated display
A decorative fitting bought two years ago is hard to shift even at a discount. That loss of value is written on no line but accumulates every month.
How does the split sit?
A display-weighted structure.
The weight of the fixed side
Rent and display infrastructure run independent of sales; a dealer with a wide floor carries that load every month, which puts the floor-size decision at the centre of the cost table.
Three quiet cost inflators
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- 1. The whole floor burning constantly
- 2. Excess decorative stock
- 3. Neglecting the technical group
All three come from the display.
1. The whole floor burning constantly
Without zoned switching the electricity bill grows unnecessarily and fittings wear out early. A simple switching layout prevents both losses at once.
2. Excess decorative stock
Holding quantities in storage when one sample on display would do multiplies the fashion risk and locks money. Sourcing to order nearly zeroes that risk.
3. Neglecting the technical group
A store that doesn’t fund the fast-moving panel, spot and driver group tries to cover its fixed costs with slow-moving product, which strains cash flow.
What revenue covers the costs?
Project selling lowers the threshold.
An example calculation
With ₺80K in monthly fixed costs and a 32% gross margin, break-even revenue is ₺250K. Project and LED conversion work at a 45% margin bring it to ₺178K. Margin mechanics in the lighting dealership margin article. 🧭
Does this cost base fit you?
Those who can give advice.
What are these bands based on?
The numbers rest on anonymised business records, open tariffs and independent sector work. Operations differ, so we publish bands instead of single figures. Method on our methodology page. 📐
📝 From the Field
One dealer kept the whole floor lit all day. He moved to zoned switching and converted the display fittings to LED; the electricity bill dropped noticeably and replacement frequency fell too. Same floor, same look — two lines shrank at once. In this branch the easiest saving is managing the light intelligently. 💡
📖 Key Terms
Zoned switching: lighting the display in sections rather than all at once. Fashion loss: the unrecoverable value drop as a design dates. Driver: the electronic unit powering an LED fitting and setting its lifespan. Break-even revenue: the minimum monthly sales covering costs.
⚡ In Short
Monthly running cost ₺50-150K. 📊 The invisible line: a dated display. Three inflating lines: the whole floor burning, excess decorative stock, neglecting the technical group. Break-even: fixed cost ÷ gross margin.
🎯 Next Step
Let’s map your display cost and break-even table: quote form · free digital audit. 🤝
Frequently Asked Questions
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Stock policy and lighting arrangement can be flexed. The display area is not where you cut in this branch; cutting there cuts sales directly.
A dealer selling boxes alone can’t cover the display cost; here costs only make sense alongside project selling. For those not wanting advisory work, electrical supplies; for branches needing less display, plumbing supplies. The 17-branch table on the hardware sector page.
Because it lowers both the electricity bill and the replacement frequency, it pays for itself quickly in most stores. It also costs nothing in visual quality.
Keeping one sample on display and sourcing the rest to order is the common and safer method. Holding quantities enlarges the fashion risk and locks money.
It doesn’t grow them, but by lifting the margin it pulls the break-even point down. The same fixed costs then need less revenue to reach profit.