Tags |
|
|
Links |
|
|
Casual Articles - Profitable Marketing Programs Part 2: Figuring Break Even Point
One of the most important decisions that you will have to make while starting or operating your small business is that of which accounting software to use. It could certainly be a nightmare if you make the wrong choice.During the past 20 years accounting software has advanced far beyond the old fashioned basic lined accounting books with 'in' and 'out' columns. Nowadays it is certainly possible to find accounting software that will assist you in all of your personal and business accounting tasks, from accounts receivable to online banking. With such a wide array of accounting software packages available, It can be difficult to decide which accounting software program will b
You can publicize your service or product with a pamphlet or booklet. Topical subjects such as saving energy or cutting costs are always newsworthy. Naming new trends or buying habits can equally be publicized.Take a look at the magazines and trade journals in your area of endeavor. Are there special sections for interesting tidbits of the industry? Maybe there's a section for new products, or even a section that compares products.Does your product or service have something special that competitors don't? Maybe yours is the best - and -best' is newsworthy. Does yours have the longest resiliency, or is it made from the best materials? Maybe your service is no
Figuring Break Even Point
To figure the break even point, you should know the program’s expected response rate, the program’s expected conversion rate, and the lifetime value of a new customer.
In the formulas below, the response rate and conversion rates should be expressed as a decimal (Examples: 1%=.01. One-half percent=.005). The lifetime value should be expressed in dollars. For more details, please read Part 1 of this article.
Figuring Break Even Point Based on Lifetime Value
The lifetime value formula requires you to make assumptions about how many times a customer will purchase from you over a period of time (usually around 18 months to two years) and the average profit on each sale. For average profit, start with your total sales dollars and subtract cost of goods; distribution costs; advertising and marketing expenses; and any other variable expenses related to making product and filling orders. You may also want to figure income taxes into the equation. Divide the average profit number by your total number of transactions. You
Who or what is to blame if you are not getting the promotion you want and think you deserve?Many factors, in various combinations can be the cause, but one thing is almost certain. Like it or not, you and you alone must take most of the blame if your career is stuck on "hold."There is valuable insight into all of this in Shakespeare's "Julius Caesar." Cassius is advising Brutus as they consider their ambitions for bigger and better things: "The fault, dear Brutus, is not in our stars but in ourselves, that we are underlings."Let's examine four of the more frequent reasons (or excuses, as the case may be) given to explain why people are not promoted an
Figuring Break Even Point
To figure the break even point, you should know the program’s expected response rate, the program’s expected conversion rate, and the lifetime value of a new customer.
In the formulas below, the response rate and conversion rates should be expressed as a decimal (Examples: 1%=.01. One-half percent=.005). The lifetime value should be expressed in dollars. For more details, please read Part 1 of this article.
Figuring Break Even Point Based on Lifetime Value
The lifetime value formula requires you to make assumptions about how many times a customer will purchase from you over a period of time (usually around 18 months to two years) and the average profit on each sale. For average profit, start with your total sales dollars and subtract cost of goods; distribution costs; advertising and marketing expenses; and any other variable expenses related to making product and filling orders. You may also want to figure income taxes into the equation. Divide the average profit number by your total number of transactions. Yo
Thanks to Wojciech Jestrzebowski, a Polish scholar, who introduced the term Ergonomics back in 1857 we know more about how we can incorporate the use of equipment to help with some of the daunting work duties that may take its toll on our bodies in the long term. It has only been in the recent years that companies have taken notice and have implemented ergonomic equipment in the work place. Thanks to these employers we can now lead a healthier, happier life with less body pains and strains than before.Computer work stations have advanced significantly throughout the years as people sit at them more and more. The incorporation of a good ergonomic chair and ergonomic compute
Figuring Break Even Point Based on Lifetime Value
The lifetime value formula requires you to make assumptions about how many times a customer will purchase from you over a period of time (usually around 18 months to two years) and the average profit on each sale. For average profit, start with your total sales dollars and subtract cost of goods; distribution costs; advertising and marketing expenses; and any other variable expenses related to making product and filling orders. You may also want to figure income taxes into the equation. Divide the average profit number by your total number of transactions. Yo
If you’ve ever found it difficult to free up time from the normal daily grind of ‘putting out fires’ to learn how to increase your sales dramatically, these eight marketing steps will save you months of digging.These steps explain how to attract more business, how to sell more to your existing clients, and how to reactivate business that has drifted away. And the best part is, there’s no need to make major changes to your business and probably no need to spend more money on ads.What are these steps?1) Increase the total number of customers you serve. Getting new clients is essential. A business that fails to grow stagnates and dies. Unfortunately, getting new cl
Now that you've cultivated a loving relationship with your reporter, gotten published, and generated awareness, how do you convert all those extra website hits and phone calls into sales?There are right ways and wrong ways.The wrong way is relying on your product's features to convert leads. It's tempting, we know. You've labored mightily to create a work of Staggering Technical Genius. One glance at your bullet-pointed feature list makes prospects swoon. Do you really need to translate all those impressive features into benefits?If your product is truly revolutionary and unique, then the answer is no. Take the world's first proven time machine. The benefits of
Lifetime Value = (Average # of purchases over lifetime) X (Average $ profit from each sale)
If you are paying for the program based on customer acquisition (i.e. you only pay if a lead generated by the program converts into a customer), you generally want to pay less than the lifetime value per customer in order to make a profit.
As an example, say on average you make $20.00 profit from each sale. Also, on average, a customer will buy from you 1.5 times over the course of two years (here, the "lifetime" is considered two years). Multiplying the two figures, that means each new customer will generate $30.00 in profit for your business. So, you break even on the program at a cost of $30.00 for each new customer.
Pay Per Click (PPC) Break Even Point
But what if you are paying on a pay per click (PPC) or pay per action (PPA) basis, a certain amount for each lead the program generates? In this case, you are paying for all of the leads (or visitors) who do not purchase as well as those
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.casualarticles.com/article/29558/casualarticles-Profitable-Marketing-Programs-Part-2-Figuring-Break-Even-Point.html">Profitable Marketing Programs Part 2: Figuring Break Even Point</a>
BB link (for phorums):
[url=http://www.casualarticles.com/article/29558/casualarticles-Profitable-Marketing-Programs-Part-2-Figuring-Break-Even-Point.html]Profitable Marketing Programs Part 2: Figuring Break Even Point[/url]
Related Articles:
Make Money Painting Houses-Excellent Part Time Income Earner
How To Research Your Target Market in 5 Easy Steps
Bookmark it:
|