Go to Bed, 2013, You're Drunk

Yes, I’m working on Christmas Day so that I can take the rest of the week off. I’m closing the books early because I’m shutting down my advertising on Thursday and Friday for a quick vacation. The numbers will improve fractionally from this snapshot, but not enough to be worth correcting. (No post this Friday, in other words.)

December

Total income: -29.6%
Total COGS: -24.9%
Payroll: -34.1%

Marketing: +31.1%
Net Income (Profit): -74.2% (-$1,478)

2013 Totals 

Total income: -20.3%
Total COGS: -20.8%
Payroll: -20.0%

Marketing: +5.7%
Net Income (Relative to LY): -136.1% (-$4,091)

Net Income (Absolute): -$1,085

This was my first losing year since 2007, my second consecutive sales decline, and my biggest decline ever. Relative to LY, the bottom line fell by $4,000 on a top-line decrease of $14,823. More than half of the shortfall went to Google for advertising. $600 of the remainder came from inbound freight charges and stock writeoffs and the rest is spread around.

At least no profit means no K-1 income and no income tax. It also means no year-end bonus for me, alas. 2014 will be a very lean year for both me and Curio City.

The good news is that I can cover next Monday’s paycheck and tip my salary into five figures, neither of which was a sure thing. The bad news is that my next Amex bill is so bloated with advertising and postage costs that all of January’s cash flow has to go there. I can forget about the new computer, desk chair, smartphone, and software updates that I wishlisted a couple of months ago. All I can do now is stash cash. 

I think the new computer has to be non-negotiable even if that means going into debt. Microsoft will discontinue Windows XP support in April. Running an unsupported OS is dangerous. I like to buy $750-900 machines and keep them in service for 3-5 years. Unless Microsoft extends XP’s life so that I can flog this old Vostro through one more year, I might need to go with a sub-$500 Dell and replace it in a year or two.