How to work out your break even sales point, Creative Copywriting & Content Solutions, Nerang, Gold Coast.
Quick tip Sept 27th, 2013.
Chances are you’ve heard the term “Break even sales point?”
Susie had but like a lot of people in business didn’t really pay it any attention because she thought it was her Accountants problem.
But you and I are smart business owners and know “everything that’s measured improves”
So here’s how to work out your break even sales point from small business ‘Money Man’ Kerry King.
Let’s say you have a Gross Margin of 40% on your sales and your fixed running costs are $400,000 per year.
How much must your sales be to cover all your costs?
The answer is $1,000,000 and here’s how it works.
Your Sales for the year are $1,000,000 and your Margin on those sales is 40% so your Gross Profit is $400,000 ($1,000,000 x 40%) and after you deduct your fixed running costs of $400,000 your Net Profit is $0.
Want to know more about how you can “Stop Ripping Yourself Off From Future Profit And Cash Flow” from small business ‘Money Man’ Kerry King?
• MORE CHOICES, FREEDOM & TIME
• MORE CASHFLOW
• BIGGER PROFIT MARGINS
• MORE CUSTOMERS
• MORE MONEY
• MORE KNOWLEDGE ABOUT PROFIT AnD CSSH FLOW SO THEY CAN BUILD THE BUSINESS THEY’VE ALWAYS WANTED and…
P.S. A lot of people with small businesses think knowing their break even sales point, Mark up versus Margin and managing working capital for increased cash are things only BIG business with millions of dollars need to know. Not true! Kerry Kings the small business ‘Money Man’ helping small businesses become BIGGER BUSINESSES so check it out and register today.
If you wanted to increase your prices by 10% do you know how many customers you could afford to lose without having a reduction in your profits?
Most people in business I ask that question say ‘No” but say they’d liked to know so I tracked down specialist small business adviser, Kerry King to present on this topic for you at the next Eddie Infotainment Business Brunch.
Over two hours, coffee and muffins Kerry’s going to show you us how we can tap into new skills and information that will show us how we can grow both PROFIT and the VALUE of our business with answers to questions such as:
Q. What will a price change of 2% do for our bottom line?
Q. If you increase prices by 10% how many customers can you afford to lose without a drop in your profits?
Q. What would a 5% change in customer retention numbers do for your profits?
Q. Are you better off working on pricing strategies or customer service strategies to improve profit and…
Q. What will improving your customer acquisition strategy do for your profits?
This brunch is for new and experienced white collar and trade based sole business owners, husband and wife business teams, Eddie Marketing Club members and others who want to know the six profitability drivers of business so they can…
• Increase prices without losing customers
• Increase their transaction value
• Increase their transaction frequency
• Catapult their business efficiency
• Find out about product versus price and
• Increase their customer acquisition