22:28
Faizan
Your business depends on maximizing returns. Not getting the best cash return on your sales can put you in difficulties as expenses mount and revenues dwindle. That's why it's important to calculate these returns and track them. The essential formula for figuring these returns is elementary. Once you've got the returns figured, consider using a spreadsheet program or similar tool to keep an eye on them over time. An automated spreadsheet can be easily adapted or updated to deal with base product cost changes that occur. Additionally, you can quickly figure margin percentages. Whatever record keeping method you select, figure those return ratios and improve them if feasible for maximum profits.
Gather the figures on cost per a particular unit, as well as your selling price point.
Subtract the cost price from the sell price point. This is the net cash return.
Express the return as a ratio of the cost. Place the net cash return first, followed by a colon, then the sell price point. For example, if the net cash return is $1 and the item sells for $3, the ratio is 1:3.
Reduce large ratios, if possible, as you would fractions. For instance if the ratio were 3:12, both sides are divisible by 4. This ratio reduces to 1:4.
Express your net cash return as a percentage of the selling price by dividing the return by the selling price. Thus, a $23 return on an item selling for $38.50 is a 59.7 percent return.
Gather the figures on cost per a particular unit, as well as your selling price point.
Subtract the cost price from the sell price point. This is the net cash return.
Express the return as a ratio of the cost. Place the net cash return first, followed by a colon, then the sell price point. For example, if the net cash return is $1 and the item sells for $3, the ratio is 1:3.
Reduce large ratios, if possible, as you would fractions. For instance if the ratio were 3:12, both sides are divisible by 4. This ratio reduces to 1:4.
Express your net cash return as a percentage of the selling price by dividing the return by the selling price. Thus, a $23 return on an item selling for $38.50 is a 59.7 percent return.
Posted in: Products & Brands
