How many do you need to sell each month?

Before a product business makes a profit it has to cover its fixed costs: the bills that arrive whether you sell anything or not. This works out how many sales that takes.

Your numbers

Each sale puts toward your bills: $4.80
Units to break even: 178
Revenue to break even: $1,602.00
Profit at your current sales: $350.00

You are 72 units past break-even each month.

The Break-even tab in the kit does this from your real orders and costs, so the number moves as your business does.

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How the sum works

What each sale puts toward your bills = price minus cost per unit.
Units to break even = fixed costs divided by that amount, rounded up.
Every sale after that point is profit, at the same amount per unit.

Questions

What counts as a fixed cost?

Anything you pay each month whatever you sell: rent, storage, software, insurance, website and subscription fees. Costs that rise with each sale, such as materials and postage, belong in cost per unit.

I sell many products at different prices. What do I enter?

Use your averages: total revenue divided by units sold for the price, and total product cost divided by units sold for the cost.

How do I lower my break-even point?

Cut a fixed cost, raise your price, or lower your cost per unit. Try each one here and see which moves the number most.

This was one sum

The Back Office Kit runs all of them, for every product, together.

One Excel workbook that prices your products, tracks your stock, logs your orders and builds your invoices and wholesale line sheet. One payment of $19. Download the moment you pay.

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The dashboard tab of the Back Office Kit: revenue, profit, cash, stock value and items to reorder.

How many do you need to sell each month?

How the sum works

Questions

The Back Office Kit runs all of them, for every product, together.

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