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Software is provide free for Evaluation. Example Business data is used for Current Performance input values (gray cells) in Evaluation Mode and cannot be changed in Evaluation Mode. Registering software removes restrictions on Current Performance input values (gray cells) allowing individual business data to be entered. Payment is required to Register Pricing and Breakeven Analysis Excel and enable all inputs.
You can also try our web based Pricing and Breakeven Analysis Modules at:
http://www.businessperformanceanalysis.com
They come with a free trial period and run in your browser
with no download or Excel required.
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.
Specific item help is also provided within the software via hyperlinks to related help information.
All input is on the Input Sheet. Click the tab or hyperlinks to access. Blue cells allow input.
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.
Input a name for the business or product. This appears as an identifier on the Output Sheets.
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.
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.
Input the average revenue per sale (Price) or the average number of sales (Num Sales).
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 change with the volume of product or service you provide. These costs include materials, production, distribution, and transaction 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 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 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.
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.
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.
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.
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.
This is the revenue required to generate your desired surplus for the period.
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 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.
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%.
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 is the revenue calculated from the increased price and corresponding number of sales.
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.
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 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.
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%.
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 is the revenue calculated from the decreased price and corresponding number of sales.
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.
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.
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 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.
This is the price that will generate the highest surplus (profit).
This is the revenue calculated from the optimum price and the corresponding number of sales.
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.
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.
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 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.
This software is in Microsoft Excel format. To run this software you must have Excel installed on your computer and macros must be enabled.
You can also try our web based Pricing and Breakeven Analysis Modules at www.businessperformanceanalysis.com. They come with a free trial period and run in your browser with no Excel requirement.
If your downloaded software is a Compressed zip file (with a .zip extension) it will require unzipping for use. Trial Zip software is available free from Winzip or a simple freeware WinZIP alternative is available from JustZIPit.
Software is provide free for Evaluation. Example Business data is used for Current Performance input values (gray cells) in Evaluation Mode and cannot be changed in Evaluation Mode. Registering software removes restrictions on Current Performance input values (gray cells) allowing individual business data to be entered.
Registering fully enables evaluation software.
You can Download Pricing and Breakeven Analysis for evaluation. Example Business data is used for Current Performance input values (gray cells) in Evaluation Mode and cannot be changed. Payment is required to Register Pricing and Breakeven Analysis Excel and enable all inputs.
If the file you downloaded has an exe extension (***.exe) it is packaged as a Self-Extracting SetUp file. To install run the downloaded file and follow the prompts to unpack and install the software. You can then run the software from the program icons or by simply opening the Excel file that best matches your version of Excel.
If the file you downloaded has a zip extension (***.zip) it is packaged in a standard compressed zip file. After download it must be unzipped. Trial Zip software is available free from www.winzip.com or a simple freeware WinZIP alternative is available from JustZIPit. You can then run the software by simply opening the Excel file that best matches your version of Excel.
If the file you downloaded has an Excel extension it is a standard Excel file. You can run the software by simply opening the Excel file.
For the software to function macros must enabled. 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.
No system files are changed when you use this software. To uninstall run the Uninstall program or simply delete all associated files.
Payment is required to Register Pricing and Breakeven Analysis Excel and enable all inputs. 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 the software and enable all inputs. Registering the software removes restrictions on Current Performance input values (gray cells). When you have your registration code click the Registration Button on the Welcome or Terms and Conditions sheet and follow the prompts.
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 (Quantity set to 1) 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
evaluation software with a Non Commercial License removes
restrictions on Current Performance input values (gray cells) and
authorizes non-commercial private and internal business use only.
All other features including cell and macro protection are the
same in evaluation and registered Non-Commercial software. All
non-input cells and macros remain protected to ensure the
integrity of the formula and programming.
Commercial License
This license allows the commercial use of software for
inter-business support, advice, or consulting. Registering
evaluation software with a Commercial License removes
restrictions on Current Performance input values (gray cells) and
authorizes Commercial use. Commercial registration also allows
you to view the underlying formula applied to enhance your
knowledge of software operation (macros remain protected) and
undertake minor refinements (ie headings etc). Calculation sheets
are protected without a password and can be unprotected with a
Commercial License. To unprotect a calculation sheet from the sheet go Review, Unprotect Sheet when using Excel 2007 or Tools, Protection, Unprotect Sheet when using Excel 97-2003. An additional calculation sheet named Worksheet is also displayed and includes
underlying formula and calculations. All non calculation sheets and macros remain password protected.
Source License
This license allows you to access and modify all software code including macros. For additional details please Contact Us.
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.
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For items not addressed in the online Help or our Question & Answer Items please Contact Us.
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David Morcom
www.bizpeponline.com