SlideShare ist ein Scribd-Unternehmen logo
1 von 31
Downloaden Sie, um offline zu lesen
Finance and Financial Planning
The Four Pillars of Finance
Financials
Pricing
Sales Forecast
Profit and Loss
Cashflow Forecast
Pricing Checklist
Know your real costs
for each product /
service
Work out the
minimum at which its
worth selling at all
Find out from your
customers what each
product or service is
worth to them
Check your
competitors prices
If their price is lower
than your worth
selling at price
THINK AGAIN
Be prepared to make
range and pricing
changes
Keep checking that
you price is right
Pricing methods
Pricing
methods
Cost
MarketingCompetition
• Cost Orientated Pricing
− Full cost pricing
−A way of including all the costs that are directly and
indirectly associated with the product or service
−Increase cost with decreasing sales!
−Sales are estimated before a price is set
−Focuses on internal costs rather than customers and
customer value
−It does however give an indication to the minimum cost
to make a profit
Year 1
Direct costs £2
Fixed costs £200,000
Expected Sales 100,000
Cost per unit
Direct costs £2
Fixed costs £2
Full costs £4
Mark Up 10%
Price plus profit £4.40
What are the costs of running a
business?
Are they direct or indirect?
Overheads
(for 12 months) Staff Salaries / wages
Business Rent 0.00
Business Rates 0.00
Water Rates 0.00
Light / Heat / Power 0.00
Repairs and Renewals 0.00
Business Insurance 0.00
Travel and Vehicle
costs 0.00
Phone and Postage 0.00
Printing and
Stationery 0.00
Marketing 0.00
Professional Fees 0.00
General Expenditure 0.00
Total Overheads 0.00
Year 1
Direct costs £2
Fixed costs £200,000
Expected Sales 100,000
Cost per unit
Direct costs £2
Fixed costs £2
Full costs £4
Mark Up 10%
Price plus profit £4.40
Year 1
Direct costs £2
Fixed costs £200,000
Expected Sales 100,000
Cost per unit
Direct costs £2
Fixed costs £2
Full costs £4
Mark Up 10%
Price plus profit £4.40
Sales forecasting next
Sales forecasting
• Your sales forecast should be based upon any historical sales, your
marketing strategic and your market research.
• It is a month-by-month prediction of the level of sales you expect to
achieve.
• Every year is different, so you need to consider any changing
circumstances that could significantly affect your sales
• These factors - known as the sales forecast assumptions - form the basis
of your forecast.
• You may wish to do two
1. A best guess – what you really expect
2. A worst case – your lowest estimate no matter what
Typical examples of assumptions:
− The market you sell into will grow by 2 per cent.
− Your market share will shrink by 2 per cent, due to the success of a competitor.
− Seasonality – how sales will change depending on the time of year
− You will spend 50 per cent less on advertising, which will reduce the number of
enquiries from potential customers.
− You are launching a range of new products. Sales will be small this year and
costs will outweigh profits, but in future years you will reap the benefits.
− You have new products that have the potential to increase sales rapidly.
How to forecast sales
• Use your previous experience
−If you don’t have personal experience seek those you might have,
friends, past colleagues, advisors
• Use past results as a guide
−If not your own look for past results from other similar companies
• Look for specific drivers
−E.g. if you are delivering services how many days can you actually earn
fees, ensure you account for non fee earning days Use market data
−If you are a restaurant think about how many tables you have and how
often you can turn them
• Use market data
Market size
Total available market
This is the entire universe that could ever
buy your product, for your niche –
anywhere
Addressable market
This is revenue represented by the
market segments that you intend to sell
and service in the time covered by your
plan available money
Market Size
A B C
Market
Size
Number of
customers
Average
transaction size
Number of
transactions per
customer per
year
Sales Forecast
MONTH SALES a SALES
b
SALES
c
TOTAL
MONTH
MONTH CUMULATIVE
MONTHLY
1
2
3
4
5
6
7
8
9
10
11
12
YEAR
Can you forecast your sales?
You should now have enough
information to complete your
Profit and Loss forecast
Annual
Sales Income
Sales a £0.00
Sales b £0.00
Sales c £0.00
Sales d
Total Sales Income £0.00
Direct Costs
Cost of materials £0.00
Direct wages
Subcontract charges
Packaging and carriage
Total Direct Costs £0.00
Gross Profit £0.00
% GP Margin
Overheads
Staff Salaries / wages
Business Rent 0.00
Business Rates 0.00
Water Rates 0.00
Light / Heat / Power 0.00
Repairs and Renewals 0.00
Business Insurance 0.00
Travel and Vehicle costs 0.00
Phone and Postage 0.00
Printing and Stationery 0.00
Marketing 0.00
Professional Fees 0.00
General Expenditure 0.00
Total Overheads 0.00
Net Profit / Loss £0.00
Profit and loss
Now that we have our costs and
our sales – what are your costs per
unit?
Back to pricing
Year 1
Direct costs £2
Fixed costs £200,000
Expected Sales 100,000
Cost per unit
Direct costs £2
Fixed costs £2
Full costs £4
Mark Up 10%
Price plus profit £4.40
You now have a cost orientated
price
Pricing Checklist
Know your real costs
for each product /
service
Work out the
minimum at which its
worth selling at all
Find out from your
customers what each
product or service is
worth to them
Check your
competitors prices
If their price is lower
than your worth
selling at price
THINK AGAIN
Be prepared to make
range and pricing
changes
Keep checking that
you price is right
Pricing Checklist
Know your real costs
for each product /
service
Work out the
minimum at which its
worth selling at all
Find out from your
customers what each
product or service is
worth to them
Check your
competitors prices
If their price is lower
than your worth
selling at price
THINK AGAIN
Be prepared to make
range and pricing
changes
Keep checking that
you price is right
• Competition
− At the very least you should know who your competitors are and what they charge
Immediate competitors,
e.g. Blockbusters
Technically similar
products
Secondary competitors,
eg. Lovefilm / Netflix
Different products
solving the same
problem in a different
way
Tertiary competitors e.g.
Sky Movies
Different products
solving or eliminating the
problem in a
different way
Can you accurately create a
competitor based price for your
new product / service?
What’s the difference?
Is it feasible?
Pricing new products or services
High
High
Low
Low
Promotion
Price
Rapid Skimming
Rapid
Penetration
Slow Skimming
Slow
Penetration
Premium products
Gradual entry
Premium products
Quick entry
Cashflow
−Cashflow forecasting enables you to predict peaks and troughs in your
cash balance.
−It enables you to
−see how long it will take you to make a profit
−See how long any funding you get may last (your runway)
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10Month 11 Month 12
Income
Sales a
Sales b
Total Income £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Expenditure
Materials
Subcontract Charges
Packaging and Carriage
Wages
Business Rent
Business Rates
Water Rates
Light / Heat / Power
Repairs and Renewals
Business Insurance
Travel and Vehicle costs
Printing and Stationery
Marketing
Professional Fees
General Expenditure
Total Expenditure £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Monthly net inflow / outflow £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Cumulative monthly flow £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Financials
Pricing
Sales Forecast
Profit and Loss
Cashflow Forecast





Weitere ähnliche Inhalte

Was ist angesagt?

Introduction to value-pricing
Introduction to value-pricingIntroduction to value-pricing
Introduction to value-pricingJakob Persson
 
Product Market Fit and Lean Methodology
Product Market Fit and Lean MethodologyProduct Market Fit and Lean Methodology
Product Market Fit and Lean Methodologyazlaan
 
How to Set the Perfect Price for Innovative Products? | Pricing Strategy For ...
How to Set the Perfect Price for Innovative Products? | Pricing Strategy For ...How to Set the Perfect Price for Innovative Products? | Pricing Strategy For ...
How to Set the Perfect Price for Innovative Products? | Pricing Strategy For ...azlaan
 
What is value based pricing?
What is value based pricing?What is value based pricing?
What is value based pricing?Jose Paez
 
Pre-MVP marketing for startups July 2015
Pre-MVP marketing for startups July 2015Pre-MVP marketing for startups July 2015
Pre-MVP marketing for startups July 2015Sovita Chander
 
The value proposition builder workbook
The value proposition builder workbookThe value proposition builder workbook
The value proposition builder workbookIncubation & Industry
 
Shell Presentation
Shell Presentation Shell Presentation
Shell Presentation aya.samy
 
How to do value-based selling that generates better prospects and higher reve...
How to do value-based selling that generates better prospects and higher reve...How to do value-based selling that generates better prospects and higher reve...
How to do value-based selling that generates better prospects and higher reve...Jakob Persson
 
Customer journey mapping seminar
Customer journey mapping seminarCustomer journey mapping seminar
Customer journey mapping seminarMacInnis Marketing
 
Marketing Strategy explained in 25 Easy Slides for MBA students
Marketing Strategy explained in 25 Easy Slides for MBA studentsMarketing Strategy explained in 25 Easy Slides for MBA students
Marketing Strategy explained in 25 Easy Slides for MBA studentsS K "Bal" Palekar
 
Basic Five Training
Basic Five Training Basic Five Training
Basic Five Training Lester Faison
 
Entrepreneurial Marketing [Creative marketing]
Entrepreneurial Marketing [Creative marketing]Entrepreneurial Marketing [Creative marketing]
Entrepreneurial Marketing [Creative marketing]azlaan
 
10. sales training territory management
10. sales training   territory management10. sales training   territory management
10. sales training territory managementEarl Stevens
 
Managing Sales in Tough Times!
Managing Sales in Tough Times!Managing Sales in Tough Times!
Managing Sales in Tough Times!Peter Michie
 
VARs: Build Your Value Proposition
VARs: Build Your Value PropositionVARs: Build Your Value Proposition
VARs: Build Your Value PropositionMelissa Henley
 
value proposition simplified
value proposition simplifiedvalue proposition simplified
value proposition simplifiedMani Ashraf
 
Strategic Selling
Strategic SellingStrategic Selling
Strategic SellingBPAS
 

Was ist angesagt? (20)

Introduction to value-pricing
Introduction to value-pricingIntroduction to value-pricing
Introduction to value-pricing
 
IPenable OEP
IPenable OEPIPenable OEP
IPenable OEP
 
Product Market Fit and Lean Methodology
Product Market Fit and Lean MethodologyProduct Market Fit and Lean Methodology
Product Market Fit and Lean Methodology
 
How to Set the Perfect Price for Innovative Products? | Pricing Strategy For ...
How to Set the Perfect Price for Innovative Products? | Pricing Strategy For ...How to Set the Perfect Price for Innovative Products? | Pricing Strategy For ...
How to Set the Perfect Price for Innovative Products? | Pricing Strategy For ...
 
What is value based pricing?
What is value based pricing?What is value based pricing?
What is value based pricing?
 
Pre-MVP marketing for startups July 2015
Pre-MVP marketing for startups July 2015Pre-MVP marketing for startups July 2015
Pre-MVP marketing for startups July 2015
 
Value selling revisited
Value selling revisited Value selling revisited
Value selling revisited
 
The value proposition builder workbook
The value proposition builder workbookThe value proposition builder workbook
The value proposition builder workbook
 
Shell Presentation
Shell Presentation Shell Presentation
Shell Presentation
 
How to do value-based selling that generates better prospects and higher reve...
How to do value-based selling that generates better prospects and higher reve...How to do value-based selling that generates better prospects and higher reve...
How to do value-based selling that generates better prospects and higher reve...
 
6 pricing and negotiation
6   pricing and negotiation6   pricing and negotiation
6 pricing and negotiation
 
Customer journey mapping seminar
Customer journey mapping seminarCustomer journey mapping seminar
Customer journey mapping seminar
 
Marketing Strategy explained in 25 Easy Slides for MBA students
Marketing Strategy explained in 25 Easy Slides for MBA studentsMarketing Strategy explained in 25 Easy Slides for MBA students
Marketing Strategy explained in 25 Easy Slides for MBA students
 
Basic Five Training
Basic Five Training Basic Five Training
Basic Five Training
 
Entrepreneurial Marketing [Creative marketing]
Entrepreneurial Marketing [Creative marketing]Entrepreneurial Marketing [Creative marketing]
Entrepreneurial Marketing [Creative marketing]
 
10. sales training territory management
10. sales training   territory management10. sales training   territory management
10. sales training territory management
 
Managing Sales in Tough Times!
Managing Sales in Tough Times!Managing Sales in Tough Times!
Managing Sales in Tough Times!
 
VARs: Build Your Value Proposition
VARs: Build Your Value PropositionVARs: Build Your Value Proposition
VARs: Build Your Value Proposition
 
value proposition simplified
value proposition simplifiedvalue proposition simplified
value proposition simplified
 
Strategic Selling
Strategic SellingStrategic Selling
Strategic Selling
 

Ähnlich wie Finance and pricing

CO2 2019 | Dan Gordon | Budgeting for Growth
CO2 2019 | Dan Gordon | Budgeting for GrowthCO2 2019 | Dan Gordon | Budgeting for Growth
CO2 2019 | Dan Gordon | Budgeting for GrowthCoalmarch
 
How to break through the million dollar level and beyond in 2013
How to break through the million dollar level and beyond in 2013How to break through the million dollar level and beyond in 2013
How to break through the million dollar level and beyond in 2013PCO Bookkeepers
 
Forecast and plan your sales
Forecast and plan your salesForecast and plan your sales
Forecast and plan your salesHpm India
 
Bootstrap Business Seminars: Making Sense of the Numbers
Bootstrap Business Seminars: Making Sense of the NumbersBootstrap Business Seminars: Making Sense of the Numbers
Bootstrap Business Seminars: Making Sense of the NumbersCityStarters
 
Session 5 - Manage Cash Flow
Session 5 - Manage Cash FlowSession 5 - Manage Cash Flow
Session 5 - Manage Cash FlowLaurenWilby
 
costing and pricing.pptx
costing and pricing.pptxcosting and pricing.pptx
costing and pricing.pptxKarthigeyanCII
 
Starter company Renfrew County
Starter company Renfrew CountyStarter company Renfrew County
Starter company Renfrew CountyBernard Charlebois
 
Business Essentials - Sales
Business Essentials - SalesBusiness Essentials - Sales
Business Essentials - SalesJames Leavold
 
Financial management
Financial managementFinancial management
Financial managementBen Youn
 
The Secret to Scaling: How to Build & Implement a Fixed Fee Pricing Plan
The Secret to Scaling: How to Build & Implement a Fixed Fee Pricing PlanThe Secret to Scaling: How to Build & Implement a Fixed Fee Pricing Plan
The Secret to Scaling: How to Build & Implement a Fixed Fee Pricing PlanHubdoc
 
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...Internet Marketing Software - WordStream
 
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...Internet Marketing Software - WordStream
 
How to Calculate Product Costs for a Manufacturer
How to Calculate Product Costs for a ManufacturerHow to Calculate Product Costs for a Manufacturer
How to Calculate Product Costs for a ManufacturerIsah Nurdianah
 

Ähnlich wie Finance and pricing (20)

Finance and pricing for start-ups
Finance and pricing for start-upsFinance and pricing for start-ups
Finance and pricing for start-ups
 
Business planning
Business planningBusiness planning
Business planning
 
Business planning
Business planningBusiness planning
Business planning
 
CO2 2019 | Dan Gordon | Budgeting for Growth
CO2 2019 | Dan Gordon | Budgeting for GrowthCO2 2019 | Dan Gordon | Budgeting for Growth
CO2 2019 | Dan Gordon | Budgeting for Growth
 
Basics of finance
Basics of financeBasics of finance
Basics of finance
 
Finance for your pre start business
Finance for your pre start businessFinance for your pre start business
Finance for your pre start business
 
How to break through the million dollar level and beyond in 2013
How to break through the million dollar level and beyond in 2013How to break through the million dollar level and beyond in 2013
How to break through the million dollar level and beyond in 2013
 
Forecast and plan your sales
Forecast and plan your salesForecast and plan your sales
Forecast and plan your sales
 
Bootstrap Business Seminars: Making Sense of the Numbers
Bootstrap Business Seminars: Making Sense of the NumbersBootstrap Business Seminars: Making Sense of the Numbers
Bootstrap Business Seminars: Making Sense of the Numbers
 
10 finance and financial planning
10   finance and financial planning10   finance and financial planning
10 finance and financial planning
 
Session 5 - Manage Cash Flow
Session 5 - Manage Cash FlowSession 5 - Manage Cash Flow
Session 5 - Manage Cash Flow
 
costing and pricing.pptx
costing and pricing.pptxcosting and pricing.pptx
costing and pricing.pptx
 
Starter company Renfrew County
Starter company Renfrew CountyStarter company Renfrew County
Starter company Renfrew County
 
Business Essentials - Sales
Business Essentials - SalesBusiness Essentials - Sales
Business Essentials - Sales
 
Financial management
Financial managementFinancial management
Financial management
 
The Secret to Scaling: How to Build & Implement a Fixed Fee Pricing Plan
The Secret to Scaling: How to Build & Implement a Fixed Fee Pricing PlanThe Secret to Scaling: How to Build & Implement a Fixed Fee Pricing Plan
The Secret to Scaling: How to Build & Implement a Fixed Fee Pricing Plan
 
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
 
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
 
How to Calculate Product Costs for a Manufacturer
How to Calculate Product Costs for a ManufacturerHow to Calculate Product Costs for a Manufacturer
How to Calculate Product Costs for a Manufacturer
 
Break-even analysis.pptx
Break-even analysis.pptxBreak-even analysis.pptx
Break-even analysis.pptx
 

Mehr von Incrementa consulting

Mehr von Incrementa consulting (20)

Early and growth customers
Early and growth customersEarly and growth customers
Early and growth customers
 
Action planning
Action planningAction planning
Action planning
 
Planning dmu
Planning dmuPlanning dmu
Planning dmu
 
Finding customers dmu
Finding customers dmuFinding customers dmu
Finding customers dmu
 
Business administration dmu
Business administration   dmuBusiness administration   dmu
Business administration dmu
 
Business modelling dmu
Business modelling   dmuBusiness modelling   dmu
Business modelling dmu
 
Key activities and resources
Key activities and resourcesKey activities and resources
Key activities and resources
 
Business administration
Business administrationBusiness administration
Business administration
 
Business modelling for a start up
Business modelling for a start upBusiness modelling for a start up
Business modelling for a start up
 
Getting ready to launch
Getting ready to launchGetting ready to launch
Getting ready to launch
 
Social media for start ups
Social media for start upsSocial media for start ups
Social media for start ups
 
Identifying and choosing early adopters and growth customers
Identifying and choosing early adopters and growth customersIdentifying and choosing early adopters and growth customers
Identifying and choosing early adopters and growth customers
 
Planning, refining and testing your idea
Planning, refining and testing your ideaPlanning, refining and testing your idea
Planning, refining and testing your idea
 
Business model innovation
Business model innovationBusiness model innovation
Business model innovation
 
Customer service for small businesses
Customer service for small businesses Customer service for small businesses
Customer service for small businesses
 
Email marketing
Email marketingEmail marketing
Email marketing
 
Sales
SalesSales
Sales
 
Linked in masterclass
Linked in masterclassLinked in masterclass
Linked in masterclass
 
9 finding the money
9   finding the money9   finding the money
9 finding the money
 
8 presenting and pitching
8   presenting and pitching8   presenting and pitching
8 presenting and pitching
 

Kürzlich hochgeladen

MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfSourav Sikder
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 

Kürzlich hochgeladen (20)

MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 

Finance and pricing

  • 1. Finance and Financial Planning The Four Pillars of Finance
  • 3. Pricing Checklist Know your real costs for each product / service Work out the minimum at which its worth selling at all Find out from your customers what each product or service is worth to them Check your competitors prices If their price is lower than your worth selling at price THINK AGAIN Be prepared to make range and pricing changes Keep checking that you price is right
  • 5. • Cost Orientated Pricing − Full cost pricing −A way of including all the costs that are directly and indirectly associated with the product or service −Increase cost with decreasing sales! −Sales are estimated before a price is set −Focuses on internal costs rather than customers and customer value −It does however give an indication to the minimum cost to make a profit
  • 6. Year 1 Direct costs £2 Fixed costs £200,000 Expected Sales 100,000 Cost per unit Direct costs £2 Fixed costs £2 Full costs £4 Mark Up 10% Price plus profit £4.40
  • 7. What are the costs of running a business? Are they direct or indirect?
  • 8. Overheads (for 12 months) Staff Salaries / wages Business Rent 0.00 Business Rates 0.00 Water Rates 0.00 Light / Heat / Power 0.00 Repairs and Renewals 0.00 Business Insurance 0.00 Travel and Vehicle costs 0.00 Phone and Postage 0.00 Printing and Stationery 0.00 Marketing 0.00 Professional Fees 0.00 General Expenditure 0.00 Total Overheads 0.00
  • 9. Year 1 Direct costs £2 Fixed costs £200,000 Expected Sales 100,000 Cost per unit Direct costs £2 Fixed costs £2 Full costs £4 Mark Up 10% Price plus profit £4.40
  • 10. Year 1 Direct costs £2 Fixed costs £200,000 Expected Sales 100,000 Cost per unit Direct costs £2 Fixed costs £2 Full costs £4 Mark Up 10% Price plus profit £4.40 Sales forecasting next
  • 11. Sales forecasting • Your sales forecast should be based upon any historical sales, your marketing strategic and your market research. • It is a month-by-month prediction of the level of sales you expect to achieve. • Every year is different, so you need to consider any changing circumstances that could significantly affect your sales • These factors - known as the sales forecast assumptions - form the basis of your forecast. • You may wish to do two 1. A best guess – what you really expect 2. A worst case – your lowest estimate no matter what
  • 12. Typical examples of assumptions: − The market you sell into will grow by 2 per cent. − Your market share will shrink by 2 per cent, due to the success of a competitor. − Seasonality – how sales will change depending on the time of year − You will spend 50 per cent less on advertising, which will reduce the number of enquiries from potential customers. − You are launching a range of new products. Sales will be small this year and costs will outweigh profits, but in future years you will reap the benefits. − You have new products that have the potential to increase sales rapidly.
  • 13. How to forecast sales • Use your previous experience −If you don’t have personal experience seek those you might have, friends, past colleagues, advisors • Use past results as a guide −If not your own look for past results from other similar companies • Look for specific drivers −E.g. if you are delivering services how many days can you actually earn fees, ensure you account for non fee earning days Use market data −If you are a restaurant think about how many tables you have and how often you can turn them • Use market data
  • 14. Market size Total available market This is the entire universe that could ever buy your product, for your niche – anywhere Addressable market This is revenue represented by the market segments that you intend to sell and service in the time covered by your plan available money
  • 15. Market Size A B C Market Size Number of customers Average transaction size Number of transactions per customer per year
  • 16. Sales Forecast MONTH SALES a SALES b SALES c TOTAL MONTH MONTH CUMULATIVE MONTHLY 1 2 3 4 5 6 7 8 9 10 11 12 YEAR
  • 17. Can you forecast your sales?
  • 18. You should now have enough information to complete your Profit and Loss forecast
  • 19. Annual Sales Income Sales a £0.00 Sales b £0.00 Sales c £0.00 Sales d Total Sales Income £0.00 Direct Costs Cost of materials £0.00 Direct wages Subcontract charges Packaging and carriage Total Direct Costs £0.00 Gross Profit £0.00 % GP Margin Overheads Staff Salaries / wages Business Rent 0.00 Business Rates 0.00 Water Rates 0.00 Light / Heat / Power 0.00 Repairs and Renewals 0.00 Business Insurance 0.00 Travel and Vehicle costs 0.00 Phone and Postage 0.00 Printing and Stationery 0.00 Marketing 0.00 Professional Fees 0.00 General Expenditure 0.00 Total Overheads 0.00 Net Profit / Loss £0.00 Profit and loss
  • 20. Now that we have our costs and our sales – what are your costs per unit?
  • 21. Back to pricing Year 1 Direct costs £2 Fixed costs £200,000 Expected Sales 100,000 Cost per unit Direct costs £2 Fixed costs £2 Full costs £4 Mark Up 10% Price plus profit £4.40
  • 22. You now have a cost orientated price
  • 23. Pricing Checklist Know your real costs for each product / service Work out the minimum at which its worth selling at all Find out from your customers what each product or service is worth to them Check your competitors prices If their price is lower than your worth selling at price THINK AGAIN Be prepared to make range and pricing changes Keep checking that you price is right
  • 24. Pricing Checklist Know your real costs for each product / service Work out the minimum at which its worth selling at all Find out from your customers what each product or service is worth to them Check your competitors prices If their price is lower than your worth selling at price THINK AGAIN Be prepared to make range and pricing changes Keep checking that you price is right
  • 25. • Competition − At the very least you should know who your competitors are and what they charge Immediate competitors, e.g. Blockbusters Technically similar products Secondary competitors, eg. Lovefilm / Netflix Different products solving the same problem in a different way Tertiary competitors e.g. Sky Movies Different products solving or eliminating the problem in a different way
  • 26. Can you accurately create a competitor based price for your new product / service?
  • 28. Pricing new products or services High High Low Low Promotion Price Rapid Skimming Rapid Penetration Slow Skimming Slow Penetration Premium products Gradual entry Premium products Quick entry
  • 29. Cashflow −Cashflow forecasting enables you to predict peaks and troughs in your cash balance. −It enables you to −see how long it will take you to make a profit −See how long any funding you get may last (your runway)
  • 30. Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10Month 11 Month 12 Income Sales a Sales b Total Income £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 Expenditure Materials Subcontract Charges Packaging and Carriage Wages Business Rent Business Rates Water Rates Light / Heat / Power Repairs and Renewals Business Insurance Travel and Vehicle costs Printing and Stationery Marketing Professional Fees General Expenditure Total Expenditure £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 Monthly net inflow / outflow £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 Cumulative monthly flow £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
  • 31. Financials Pricing Sales Forecast Profit and Loss Cashflow Forecast    