free business calculator break even


Marketing Break Even Analysis

Break-Even Analysis
[ Page 56 of Instant Sales by Bradley J. Sugars ]

It's essential that you work out your costs up front. Otherwise, you'll have no idea what you need to achieve in order for the process to be worthwhile. You may find out after doing the analysis that the process costs you so much that it's not worth the trouble.

This analysis is for the whole campaign. After you've worked out your total fixed costs (for the campaign), you then work out your profit (your average dollar sale minus your variable costs), which gives you enough information to work out how many responses you need in order to break even.

Divide this number by the total number of prospects you are planning to approach. This will give you a percentage response rate. As a very rough guide (every case is different), anything over 40 percent is stretching it. If you need that high a response, you might need to rethink your campaign. The very best businesses get around 40 percent. These are rare results. If you need higher than that to break even, reassess whether this is the best marketing method for you.

Note:All numbers are total dollar amounts for chosen period. ENTER NUMBERS ONLY
 
 Activity Direct Costs
Advertising
 
Envelopes
 
Paper
 
Printing
 
Postage
 
Other
 
     
Total
  $
Average Sales
Average Sale-per item
 
Variable Costs
Purchase Price-per item
 
Packaging-per item
 
Transportation-per item
 
Total-per item
  $
 Variable Costs
Telephone
 
Wages
 
Electricity
 
Rent
 
Insurance
 
Stationery
 
Other
 
Total Cost
  $
 
Items to Sell to Break Even.Number of Items to Sell to Break Even.

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