Price Break Even Analysis

Price Break Even Analysis Download Help License +bizpep.com

Test price changes, determine optimum pricing and break even for your business

Price Break Even Analysis uses break even analysis to calculate your current business break even point using revenue, variable and fixed cost inputs. This is combined with price elasticity (estimates of price and sales volume variations) to produce revenue and surplus (profit/loss) forecasts by price. The model determines the Optimum Pricing to maximize your surplus and can be applied to:

Price Break Even Analysis will determine the impact of a price change on your business. It is compact, easy to use, and requires minimal inputs. Outputs include break even charts for Current, Increased, Decreased and Optimum pricing. Each break even chart is a graphical display of the break even analysis, including the break even point, considering price elasticity.

Extended Price Analysis determines Optimum Pricing to maximize your business surplus. The Revenue, Surplus and Number of Sales are calculated for prices ranging from -50% to +50% of the current price. Price Break Even Analysis incorporates break even analysis, break even charts, break even points and price elasticity to determine the impact of pricing on your business and optimum pricing.

Try Price Break Even Analysis, other businesses love it...

You can Download Price Break Even Analysis free of charge for evaluation. It is available as a standard spreadsheet (.xlsx file developed with Microsoft Excel) and will run on most spreadsheet applications.

Download Price Break Even Analysis

Download Price Break Even Analysis - Compressed Zip file
pricebreakevenanalysis.zip

or

Download Price Break Even Analysis - .xlsx file
pricebreakevenanalysis.xlsx

This application is a spreadsheet developed in Microsoft Excel and will run on Microsoft Excel and most other spreadsheet applications. You can download Price Break Even Analysis free of charge for evaluation. In evaluation mode some functionality is restricted. To license your application and fully enable all functions requires the purchase of an application license. If you have not already please consider buying a license to fully enable your application.

If you download the Compressed Zip file unzip/uncompress the downloaded file and save the content .xlsx application file. If you download the .xlsx file simply save the .xlsx file. Open the .xlsx file and follow the instructions. This application does not access or alter your system or system files in any way. To uninstall simply delete the saved files.

Application suitability must be independently assessed and use indicates acceptance of any and all associated risk.

Help Price Break Even Analysis

Price Break Even Analysis will determine the impact of a price change on your business. It calculates current break even points using revenue, variable cost, and fixed cost inputs. These are combined with estimates for price and sales volume variations to produce revenue and surplus (profit/loss) forecasts. The model determines the Optimum Pricing to maximize your surplus and can be applied to new or established businesses, product/service lines, or individual items. It is compact, easy to use, and requires minimal inputs. Outputs include Break Even Charts for Current, Increased, Decreased, and Optimum pricing. Analysis determines the Optimum Price to maximize your business surplus, and the Revenue, Surplus, and Number of Sales are calculated for prices ranging from -50% to +50% of the current price.

This is the current version of our original Pricing and Breakeven Analysis, this is a proven application providing real business value as evidenced by client feedback.

Specific item help is also provided within the application via hyperlinks to related help information.

Quick Start

1. All input is on the Input Sheet. Click the sheet tabs to access. Blue cells allow input.
2. You can save the file with different file names to use with multiple businesses.

Welcome

The Welcome sheet provides application and license details. When you purchase a license you will receive License Details by email. To license your application input your License Details into the blue cells at the bottom of the Welcome sheet and save the spreadsheet. Current license details are displayed in red.

Input

Start here...

Current Operating Performance Data

This section reviews the current performance of your business or product for a full year period. Inputs include Revenue, the level of expenses that vary with your sales (Variable Costs), and those that don't (Fixed Costs). Inputs do not have to be perfect but should reasonably reflect business operation. You can analyze a component of the business or a specific product by including values that apply only to the area under analysis. As an example we will analyze Acme Widgets producers of quality Widgets.

Business Name or Identifier

Input a name for the business. This appears as an identifier on the Output Sheets.

Business Revenue

Input the Revenue generated by the business or product for the current year. If you are setting the price for a new product or service input your forecast sales for a year.

Sales

Select your Sales input as Price (average revenue per sale) or Num Sales (Number of Sales). This allows you to input your Sales breakdown directly as the average price per sale or the number of sales per year.

Price & Number of Sales

Input the average revenue per sale (Price) or the average number of sales (Num Sales).

Expenses

Select your Expense input as Monetary or Percent. This allows you to input your Expenses directly in Monetary (Dollars, Pounds etc) or Percentage terms.

Variable Costs

Variable Costs change with the volume of product or service you provide. These costs include materials, production, distribution, and transaction costs.

Fixed Costs

Fixed Costs are expenses which remain constant (up to a point) while the volume of sales vary. This includes administration, location, and finance costs.

Operating Surplus

Operating Surplus reflects the before tax operating profit/loss of the business. It is calculated as the Revenue less Variable Costs less Fixed Costs.

Current Break Even Analysis

Current Break Even Analysis applies your current performance input to determine break even points and the required revenue and number of sales for a desired surplus under current trading conditions.

Current Break Even Revenue is

This is the revenue required before any profit is generated by the business. If revenue is less than this the business will lose money for the period.

Current Break Even Number of Sales is

This is the number of sales required before any profit is generated by the business. If the number of sales is less than this the business will lose money for the period.

Current Price Break Even Chart

The Break Even Chart plots the Revenue, Variable Cost, Fixed Cost, and Surplus against the Number of Sales for a year. The red line indicates total costs and the black line revenue. Where they cross is the break even point. The green area to the right of the break even point represents profit, the green area to the left of break even is a loss.

To generate a surplus of

You can input your desired surplus for a week, month, or year. The model will calculate the revenue and number of sales required to generate this surplus based on current pricing. This can be applied for budgeting and goal setting.

You currently require Revenue of

This is the revenue required to generate your desired surplus for the period.

Pricing Analysis

Pricing Analysis allows you to test the impact of pricing changes. Input estimated changes in the number of sales for changes in price to test the impact on revenue and surplus.

Increased Average Price

Increased Average Price allows you to determine the revenue and surplus generated by an increased price. The ratio of price to number of sales is applied in extended pricing analysis. Select your Increased Average Price input as Units or Percent. This allows you to input directly in Units (Monetary and Number of Sales) or Percentage terms.

An average price increase of

Input the amount of average price increase to test. This increase is relative to your current price. The ratio of price change to number of sales change will be applied in the extended pricing analysis. As a percentage this price increase should be no greater than 50%.

annual Number of Sales decrease by

Input the estimated impact on the number of sales your price increase will have. Consider competitor and consumer reactions. The ratio of price change to number of sales change will be applied in the extended pricing analysis.

This results in Revenue of

This is the revenue calculated from the increased price and corresponding number of sales.

With an Operating Surplus of

This is the operating surplus (profit) based on the increased price and the corresponding number of sales. The Variable Cost applied is the Variable Cost per Unit produced as calculated from the current performance input.

Increased Price Break Even Chart

The Break Even Chart plots the Revenue, Variable Cost, Fixed Cost, and Surplus against the Number of Sales for a year. The red line indicates total costs and the black line revenue. Where they cross is the break even point. The green area to the right of the break even point represents profit, the green area to the left of break even is a loss.

Decreased Average Price

Decreased Average Price allows you to determine the revenue and surplus generated by a decreased price. The ratio of price to number of sales is applied in extended pricing analysis. Select your Decreased Average Price input as Units or Percent. This allows you to input directly in Units (Monetary and Number of Sales) or Percentage terms.

An average price decrease of

Input the amount of average price decrease to test. This decrease is relative to your current price. The ratio of price change to number of sales change will be applied in the extended pricing analysis. As a percentage this price decrease should be no greater than 50%.

annual Number of Sales increase by

Input the estimated impact on the number of sales your price decrease will have. Consider competitor and consumer reactions. The ratio of price change to number of sales change will be applied in the extended pricing analysis.

This results in Revenue of

This is the revenue calculated from the decreased price and corresponding number of sales.

With an Operating Surplus of

This is the operating surplus (profit) based on the decreased price and the corresponding number of sales. The Variable Cost applied is the Variable Cost per Unit produced as calculated from the current performance input.

Decreased Price Break Even Chart

The Break Even Chart plots the Revenue, Variable Cost, Fixed Cost, and Surplus against the Number of Sales for a year. The red line indicates total costs and the black line revenue. Where they cross is the break even point. The green area to the right of the break even point represents profit, the green area to the left of break even is a loss.

Price Analysis Chart

The Price Analysis Chart plots the Number of Sales, Revenue, and Surplus for each of the defined price settings, Current, Increased, and Decreased.

Extended Pricing Analysis

Extended Pricing Analysis projects outcomes for pricing from 50% less than current to 50% more than the current price. It applies the ratio of price to number of sales defined in the increased and decreased price analysis and calculates the optimum price. The optimum price provides the highest surplus (profit). This information is intended to indicate outcomes based on your inputs. These inputs should be regularly refined to ensure they remain current.

Applying extended price analysis the optimum average sale price is

This is the price that will generate the highest surplus (profit).

This results in Revenue of

This is the revenue calculated from the optimum price and the corresponding number of sales.

With an Operating Surplus of

This is the operating surplus (profit) based on the optimum price and the corresponding number of sales. This surplus is based on Fixed Costs remaining constant and Variable Costs per Unit produced as calculated from the current performance input.

Optimum Price Break Even Chart

The Break Even Chart plots the Revenue, Variable Cost, Fixed Cost, and Surplus against the Number of Sales for a year. The red line indicates total costs and the black line revenue. Where they cross is the break even point. The green area to the right of the break even point represents profit, the green area to the left of break even is a loss.

Extended Price Analysis Chart

The Extended Price Analysis Chart plots the Number of Sales, Revenue, and Surplus projections for prices ranging from -50% to +50% of the Current price. It also identifies the current price setting and the Optimum price to maximize your surplus.

Break Even Tables

Break Even tables are provided for Current, Increased, Decreased, and Optimum pricing. They provide calculations for the number of sales from 0 to double the input amount. These results are also represented in the Break Even Charts.

License Price Break Even Analysis

Please consider supporting application development. Licensing your application will fully enable all functions.

License your application now
  $69.00 USD per year

Secure online transaction processing is provided via PayPal. License details are sent by email as soon as your transaction is processed and will fully enable your application.

Application suitability must be independently assessed and use indicates acceptance of any and all associated risk.