Forums/Support for Business Owners

Step 1a: Learn How To Calculate Your Gross Profit Per Sale

Chamber Admin
posted this on January 26, 2010 10:56

(Step 1a of "7 Steps to Creating A Kick-Butt Outrageous Deal")

The profit you make on any sale can be determined by adding together all the fixed costs you have in a business (e.g., office space, payroll, etc. DO NOT INCLUDE MARKETING COSTS) and subtracting this number from the income you get from sales. You then divide this number by the number of sales per month to get the profit per sale.

An example:

Let's say you make $15,000 from 100 sales each month.

Your average sale is therefore $15,000 divided by 100 = $150.

Next, your fixed costs each month are $10,000.

Your fixed costs per each sale are $10,000 divided by 100 sales = $100 per sale.

Because Gross Profit = Income minus Fixed Cost,

your Gross Profit per Sale = $150 - $100 = $50 per sale