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There is always a discussion with businesses about the prices that are charged for a product or service. If the price is $12, a business owner will wonder if they can sell a lot more of the product if the price is reduced to $10. This calculator helps to answer that question from two perspectives. The first part of the answer is to tell you how many more you have to sell to make the same amount of gross dollars of sales. The second calculation will tell you how many you have to sell to make the same amount of gross profit dollars. With each calculation, you are then left to make a decision. You know now how many more you do actually have to sell; you then ask yourself if you believe that is an achievable goal. Remember that in achieving the goal, you are not making any more profit or any more sales dollars, you are just selling more units to produce the same gross sales dollars or gross profit dollars. |
MAY 2024
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With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.
Small Business
The May Small Business Advisory is titled "Planning for a successful accountant" and is appropriate for many with the April 15 tax deadline having passed.
Did you work with your accountant? Or, did you just give them a bunch of papers and wait to receive a completed tax return?
Successfully working with an accountant requires a partnership. This month's Small Business Advisory gives suggestions of how to make this happen in 2024.
Small Business
We see that many small business owners have too much of a focus on the "top line" of their income statement.
Increasing revenue is great, but it is not a cure all for any challenges your business is facing. And sometimes, incresing revenue can create a challenge.
Who is your customer? Some small businesses have no focus. Their customer is whoever calls or walks in the door.
And some small businesses have determined which customers, in sufficient numbers, they should spend their efforts to attract.
The article of the month shares an old Southern rhyming couplet about business; "The bertter you niche, the more you get rich."
Lean Startup by Eric Reis is our suggested book for May.
As the title suggests, the reader of the book would be someone that is starting their business. However, we see more value than just that.
Perhaps you have been in business for many years. We think this book could give insight to items, and methods, that a small business owner should think about with their business today.
