How to calculate Product Profitability

Each Product or Service must Generate Profits

Making Profits is essential. To do so, a clear and precise study of all your sales categories of services is necessary.  PhotoCoach helps analyse each one of your products and services. No longer can you tolerate a lump sum sales figure on your Profit and Loss report. You have to divide your sales into categories to get a clear picture of where all this money comes from and to plan for your future activities.

This product will save you money and time and will tell you how profitable each category of  product is. Once you have done it, you'll never want to fly blind again. A worthwhile investment!

How to do it? Using the "How to calculate Product Profitability" tool, you get:

A simple and practical calculation exists that can be applied to all of your activities:

1. Classify your income into several categories and subcategories.
2. All of these categories should represent 100% of your receipts.
3. Calculate the percentage of each product of the total of your receipts.
4. Calculate production costs and all other variable expenses relative to every product.
5. Divide the cost of revenues, and get the percentage of gross >margin for each product.

Your gross margin, as part of a service activity should be between 75 and 80%.

In this study, you can add the parameter "time" and get a factor "time/money" that will evaluate your profitability level. Indeed, the higher the coefficient, the higher your bottom line. Similarly, the higher your gross margin, the higher the profit; of course your cost of sales will play a big role here.

This calculation has a definite purpose: once you know how each product affects the overall bottom line, you will able to make precise decisions  on a future course of action. Sometimes, like making difficult changes, like increasing prizes or reducing costs, and even eliminate services that are just not profitable.

Buy the "How to calculate Product Profitability" tool today and get a clear picture of where you are in your business.

Here is what you need to do:

Click on "Add to cart". Then, click on  "Cart" in the small window. Your cart will take you to the payment section. If you wish to continue to shop click on "Continue". Once your research is done, click on "my Cart" and proceed for the payment.

Your document will be sent to you immediately by email.

IMPORTANT: Once you receive the spreadsheet 102 Sales, click on Introduction for the tutorial.

Be profitable.

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Excel Profit-Pro 102 Sales Spreadsheet. Created specifically for professional photographers who wish to know how profitable each of their products or services are.

©Andre Amyot, PhotoCoach International