Simple Steps for Starting Your Business - Cost, Pricing and Breakeven

Event description

Costs

Cost Components – What to include? Don’t forget the overhead cost and your own salary..

How costs behave – Which costs increase when I sell more units and which are the same no matter how many I produce? Which costs can go down if I buy more components or ingredients?

Product Pricing

Objectives – Why am I setting this price? Normal sales? Special inventory reduction in anticipation of a revised product? Introduction of a new product? Reaction to a competitor’s increase or decrease in price?

Influential Factors – what things do I need to consider when setting my price?

Possible Strategies – what are some suggested ideas to set a successful price?

Breakeven Analysis

How many units do I have to sell each month or each year in order to make money?

How do I calculate my breakeven point? What can I do to reduce the number of units I need to sell before I start making a profit.