Pricing and Breakeven Analysis Excel - Help

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Software is provide free for Evaluation. In evaluation mode Business Revenue applied in calculations is locked to the Example value of 500000. Payment is required to Register Pricing and Breakeven Analysis Excel and fully enable this software.

As an alternative to our original Excel format software you can try our web based Business Analysis Software which includes Breakeven and Pricing Analysis. This software runs directly in your browser with no download required and is available for free trial.

  1. Overview
  2. Instructions for Use
  3. Requirements for Use
  4. Try Pricing and Breakeven Analysis
  5. Download Pricing and Breakeven Analysis
  6. Install / Uninstall
  7. Registration
  8. Conditions of Use
  9. Software Support and Contact Details

Overview

Pricing and Breakeven Analysis Excel will determine the impact of a price change on your business. It calculates current breakeven 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 Breakeven 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.

Instructions for Use

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

Input

All input is on the Input Sheet. Click the tab or hyperlinks to access. Blue cells allow input.

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 or product. 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 Breakeven Analysis

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

Current Breakeven 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 Breakeven 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 Breakeven Chart

The Breakeven 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 breakeven point. The green area to the right of the breakeven point represents profit, the green area to the left of breakeven 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 Breakeven Chart

The Breakeven 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 breakeven point. The green area to the right of the breakeven point represents profit, the green area to the left of breakeven 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 Breakeven Chart

The Breakeven 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 breakeven point. The green area to the right of the breakeven point represents profit, the green area to the left of breakeven 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 Breakeven Chart

The Breakeven 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 breakeven point. The green area to the right of the breakeven point represents profit, the green area to the left of breakeven 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.

Breakeven Tables

Breakeven 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 Breakeven Charts.

Requirements for Use

Software is an xls file developed with Microsoft Excel and will run on all versions of Microsoft Excel and most other spreadsheet applications including Excel for Macs and the free open source OpenOffice spreadsheet. It is secure and safe, it does not include any macros or visual basic coding and cannot access your system in any way. Save the download file and its content file to a known location on your local computer and then from this location simply open the spreadsheet file.

As an alternative to our original Excel format software you can try our web based Breakeven and Price Analysis Software. This software runs directly in your browser with no download required and is available for free trial.

Try Pricing and Breakeven Analysis

Software is provided free for Evaluation. In Evaluation Mode example Business Revenue data is applied in calculations.

Registering software removes restrictions allowing individual business revenue data to be applied.

In registered software all other features including cell protection are the same as in evaluation software. All non-input cells remain protected to ensure the integrity of the formula.

For software registered with a Commercial License a software version with unprotected calculation sheets is available allowing you to view the underlying formula and undertake minor refinements.

Download Pricing and Breakeven Analysis

You can Download Pricing and Breakeven Analysis for evaluation. In Evaluation Mode example Business Revenue data is applied in calculations. Payment is required to Register Pricing and Breakeven Analysis Excel and fully enable the software.

Install / Uninstall

Software is an xls file developed with Microsoft Excel and will run on all versions of Microsoft Excel and most other spreadsheet applications including Excel for Macs and the free open source OpenOffice spreadsheet. It is secure and safe, it does not include any macros or visual basic coding and cannot access your system in any way.

If software is downloaded as an xls file (with a .xls extension) you can simply save it to your local system and then open the xls file using your spreadsheet program (Excel, Open Office etc).

If software is downloaded as a standard Compressed Zip file (with a .zip extension) it requires unzipping for use. Unzip the downloaded file and save the content xls file to your local system. Then open the xls file using your spreadsheet program (Excel, Open Office etc).

If software is downloaded as a Self-Extracting Zip file (with a .exe extension) it will self extract and save the content xls file when you open the downloaded file and click Unzip. You can then open the xls file using your spreadsheet program (Excel, Open Office etc).

No system files are changed when you use this software. To uninstall simply delete the files.

Initial input is in blue cells on the Input Sheet. Use the tabs at the bottom of the window to select the Input Sheet. Non-input cells are protected to maintain formula integrity.

Registration

Payment is required to Register Pricing and Breakeven Analysis Excel and fully enable the software. Secure online payment is available at:

http://www.bizpeponline.com/PricingBreakevenReg.html

Upon receipt of payment Bizpep will provide by return email registration details to maintain and fully enable the software. When you have your registration details using the tabs at the bottom of your software select the Welcome sheet, input your Registration Details and Save the file. This will register and fully enable your software.

The number of licenses you purchase is the maximum Number of Users and the maximum Number of Computer Systems the purchased software can be installed on or that can access the software if on a network. If you purchase a single user license the software must only be accessible from one computer and there must only be one user. To run the software on more than one computer, a network, or provide for additional users you must purchase a Multi-user license by setting the purchase quantity to the required number of user licenses. Multi-user licenses attract a 30% discount.

Non-Commercial License
This license is for non-commercial private and internal business use only. It does not cover the commercial use of software for inter-business support, advice, or consulting. Registering software removes restrictions allowing individual business revenue data to be applied. In registered software all other features including cell protection are the same as in evaluation software. All non-input cells remain protected to ensure the integrity of the formula.

Commercial License
This license allows the commercial use of software for inter-business support, advice, or consulting. Registering software removes restrictions allowing individual business revenue data to be applied. In registered software all other features including cell protection are the same as in evaluation software. All non-input cells remain protected to ensure the integrity of the formula. For software registered with a Commercial License a software version with unprotected calculation sheets is available allowing you to view the underlying formula and undertake minor refinements.

Source License
This license allows you to access and modify all software code. For additional details please Contact Us.

Conditions of Use

The specific suitability of this software must be independently assessed. Software is provided as is, use is entirely at the users risk, and use acknowledges that Bizpep and all associated parties are held harmless from any claims or losses relating to software provided.

Bizpep retain all intellectual property rights. It is prohibited to use the software, concepts, formats, and systems obtained from Bizpep in any manner outside their intended use as designed and defined by Bizpep. You may not modify, translate, reverse engineer, decompile, disassemble or create derivative works based on Bizpep software, services or concepts.

You may not sell or require payment in any form for Bizpep software.

Software Support and Contact Details

For items not addressed in the online Help or our Question & Answer Items please Contact Us.

Regards
David Morcom
www.bizpeponline.com

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