• How Do I Calculate Variable Costs?

  • 2023/03/31
  • 再生時間: 13 分
  • ポッドキャスト

How Do I Calculate Variable Costs?

  • サマリー

  • - Objective today:
        - Unit economics - like individual Lego building blocks that make up the overall profitability picture
        - Revenue per unit
        - Any cost during making and selling
        - Connected to gross margin.
            - 
                - Every % is a penny of each $ available to cover overhead
    - Concept:
        - What makes it improve?
            - Increase price
            - Decrease variable expense
            - Cost of product
                - produce in bulk
                - cut costs where customers don’t mind (value engineering)
            - shipping
                - negotiate better rates
                - Offer free shipping above threshold
            - advertising & commission
                - Sell to existing audience
                - Partner with other brands to sell to their customer
        - Trade-offs
            - Sometimes spending more advertising dollars or offering referral or sales commission can accelerate revenues to help cover overhead but decrease our gross margin %
    - Key Question + Action
        - **What is a unit for you?**
        - **What costs do you incur with each creation and sale of every unit?**


    -----------------

    Want customized help building out a growth plan for your business?

    Schedule a free strategy call at Amplify.Business

    Download free pdf guide at ForecastOnPurpose.com

    Connect on LinkedIn

    Watch episodes on YouTube

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あらすじ・解説

- Objective today:
    - Unit economics - like individual Lego building blocks that make up the overall profitability picture
    - Revenue per unit
    - Any cost during making and selling
    - Connected to gross margin.
        - 
            - Every % is a penny of each $ available to cover overhead
- Concept:
    - What makes it improve?
        - Increase price
        - Decrease variable expense
        - Cost of product
            - produce in bulk
            - cut costs where customers don’t mind (value engineering)
        - shipping
            - negotiate better rates
            - Offer free shipping above threshold
        - advertising & commission
            - Sell to existing audience
            - Partner with other brands to sell to their customer
    - Trade-offs
        - Sometimes spending more advertising dollars or offering referral or sales commission can accelerate revenues to help cover overhead but decrease our gross margin %
- Key Question + Action
    - **What is a unit for you?**
    - **What costs do you incur with each creation and sale of every unit?**


-----------------

Want customized help building out a growth plan for your business?

Schedule a free strategy call at Amplify.Business

Download free pdf guide at ForecastOnPurpose.com

Connect on LinkedIn

Watch episodes on YouTube

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