So the buyer is excited and wants to put you on the shelf! Then they drop the bomb - "that will be $10,000 per item for 150 stores". Ouch! Now you have to decide if you want to make the investment or not and what your break even point is. We like to define break even as when the margin on new sales makes up the difference for those free goods and/or slotting dollars you paid. In other words, when you start making positive profit from the new account. The equation looks like this:
(Slotting Per Store) / ((UPC Sell - UPC Cost) * (UPWPS * 4)) = "Months to Break Even"
Save some time and use our calculator below!
If you don't know your velocities you can guess or ask us how we can help you find them.
|UPC / Description||UPWPS velocity||Slotting Per Store||UPC Cost||UPC Sell||Months to Break Even|