A business looks at the historical cost of goods as a percentage of its sales and uses that figure for the forecasted sales amount. The percentage of sales method can also be used to forecast other balance sheet items that are closely associated with sales, such as inventory, accounts payable...
Article 9 min read Break-even point (BEP): What it is and how to calculate it The break-even point is a major inflection point in every business and sales organization. Learn what it is and how to figure it out.
Likewise, there's a profit margin formula, which is sometimes termed a sales margin formula. The formula is the profit divided by total revenue and multiplied by 100 to express as a percentage. Simply choose the applicable profit figure to calculate as a percentage of sales....
Online retail customers are four to five times more likely tomake a purchasewhen retailers offer free shipping. Crunch the numbers to figure out the price points that won’t tank revenue and that make the increase in conversions worth the hassle. 7. Use smart pop-ups Pop-ups are small w...
to state and municipality to municipality. If you are selling items, you may want to include the sales tax in the item's price to make the price a whole number. If you have priced your items with sales tax included, you'll need to figure out how much tax is owed on the items sold...
Learn what inventory costs retailers need to keep track of, how to calculate total inventory costs, and how to reduce them.
Churn happens for many different reasons. Check out the 8 top reasons for customer churn, and actionable tips to crush your churn rate and skyrocket your revenue.
Conversion rate is the percentage of people who visit your website and buy something. Theaverage ecommerce conversion ratefalls between 2.5% and 3%, but there’s always room for improvement. The higher this figure is, the more money you’ll make. ...
Lenders use this formula to determine how much debt a consumer can sustainably take on without overextending themselves and potentially defaulting on loans. Using this rule to figure outwhat percentage of your incomeyou should spend on your mortgage is smart, since it allows borrowers to have slig...
Here’s everything you need to know about product pricing, including pricing models, strategies, and how to figure out the best price for your product. Which pricing strategy should you use? When makingproduct pricing decisions, companies typically choose a number that will turn a profit and ju...