title: "Finance" created: 2026-04-06T00:00:00.000Z modified: 2026-04-06T18:10:00.000Z tags: [finance, revenue, galleons, metrics] order: 6
Finance
"Galleons in, Galleons out, and the goal is to have more of the first than the second."
This is the money page. George maintains it because Fred's idea of financial planning is "spend money on things that are funny and trust it works out." To be fair, that strategy has a surprisingly good track record. But we keep spreadsheets anyway.
Q2 Revenue Target: 12,000 Galleons
We hit 9,800 in Q1 (our best quarter ever). Q2 has four product launches and a Hogsmeade-heavy calendar. 12,000 is ambitious but achievable if the Moonbeam Meltdrops launch performs.
Revenue data is tracked in revenue-by-product.csv.
Key Metrics
| Metric | Q1 Actual | Q2 Target | Notes |
|---|---|---|---|
| Total Revenue | 9,800G | 12,000G | +22% growth target |
| Gross Margin | 58% | 62% | Premium product mix should help |
| Avg. Basket Size | 5.2G | 6.5G | Bundles + premium line push |
| Customer Count | 1,890 | 2,300 | New products = new customers |
| Wholesale Revenue | 2,100G | 3,000G | Honeydukes expansion + new partners |
| Operating Costs | 3,920G | 4,200G | R&D investment increasing |
| Net Profit | 1,768G | 3,240G | Target: 27% net margin |
Revenue by Channel
| Channel | Q1 Revenue | Q2 Target | % of Total |
|---|---|---|---|
| Diagon Alley (retail) | 5,880G | 6,600G | 55% |
| Hogsmeade (pop-up) | 1,470G | 2,400G | 20% |
| Wholesale (Honeydukes etc.) | 2,100G | 3,000G | 25% |
| Owl Post (direct) | 350G | — | Included in retail |
Cost Structure
| Category | Monthly Cost | Notes |
|---|---|---|
| Ingredients & Materials | 1,200G | Stardust prices up 15% — need new supplier |
| Rent (Diagon Alley) | 400G | Locked in through end of year |
| Staffing | 600G | Fred, George, Verity, Lee (part-time) |
| Marketing & Advertising | 300G | Daily Prophet + Owl Post + WWN spots |
| R&D | 200G | Lab supplies, volunteer stipends, St. Mungo's retainer |
| Shipping & Logistics | 150G | Floo fees, owl fleet, Knight Bus |
| Ministry Compliance | 50G | Filing fees, inspection costs |
Financial Rules
- Never spend more than 25% of revenue on marketing. Fred would spend 100% if we let him. We don't let him.
- R&D gets a minimum 5% of revenue. This is our future. George is non-negotiable on this.
- Keep 3 months of operating costs in reserve. We survived Voldemort. We can survive a bad quarter. But reserves help.
- Wholesale margin floor: 30% off retail, never more. Honeydukes gets the same deal as everyone.
- Verity approves all purchases over 50G. Not because we don't trust Fred. Because we know Fred.
Cash Flow Concern: Stardust
Stardust prices have risen 15% this quarter due to reduced harvesting during the spring lunar cycle. This directly impacts Moonbeam Meltdrops margins. George is investigating alternative suppliers and a possible bulk purchase agreement with a Beauxbatons-connected vendor.
If stardust stays at current prices, Meltdrops margin drops from 66% to 61%. Still viable, but worth watching.
See [[Operations]] for cost-related logistics. See [[Product]] for product-level profitability. See [[Pricing Strategy]] for tier structure and margin targets. See [[Sales]] for revenue pipeline.