How to know if you break even, based on prices
What does the break even do?
After expenses, forecast how many months to start profiting after ordering inventory.
Is there a demo?
Here is the demo:
How does it work?
Enter the product sales price, average units purchased, unit cost and shipping cost. Click submit. Here is an example:
How do I access the chart?
Here are the steps:
- Log into Connex.
- On the left, click dashboard.
- On the right of forecasting, click the forecasting button:
What is the formula?
Here is the formula?
- Obtain the total cost: (ProductUnitCost * NumberOfUnitsPurchased)
- Get sale per unit (SalePrice - ShippingCost)
- Get total sales per month (SalePerUnit * AverageUnitsSoldPerMonth)
- For each month, aggregate the units sold. For example, 1 month is 10 and 2 months is 20.
- If the units sold is more than the units purchased, add a line for total cost. In the above chart, it takes ten months to sell one hundred units of inventory. Add an additional month. The chart shows eleven months.
What fields are available?
Here are the fields:
|Field Name||Field Description|
|Sale Price||The amount the customer pays to buy the product.|
|Average Units Sold Per Month||The number of units sold on average per month.|
|Numbers of Units Purchased||Numbers of units residing in inventory|
|Product Unit Cost||Cost per unit to buy items from the vendor|
|Shipping Cost||Cost per unit to ship to the customer|