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Click HERE for a video walkthrough on using this calculator
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Reverse Engineer Calculator
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(Based on Owner's Pay Target)
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( ) Step #1Enter the owner's pay that you need to make in order to provide enough for housing, food, clothing/necessities, transportation and modest entertainment
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Owner's Pay Target
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( ) Step #2Target allocation percentages based on the amount you entered in Step #1
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%
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Profit5%
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Owner's Pay50%
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Tax15%
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OpEx30%
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100%
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( ) Step #3Calculation of Revenue needed to support owner pay
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REAL REVENUE TARGET:$0
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REAL REVENUE$0
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Profit5%$0
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Owner's Pay50%$0
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Tax15%$0
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OpEx30%$0
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100%$0
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( ) Step #4What % of total sales is COGS and/or CONTRACTORS - enter % in GOLD boxes
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SALES PLAN
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REAL REVENUE100%$0
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COGS0%$0the cost to buy products you resell
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CONTRACTORS0%$0those you pay to deliver your product or service
example: subcontractors for a general contractor
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GROSS SALES100%$0
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( ) Step #5Enter your "Average Sale" amount in the blue box below (this amount should be WHAT YOU SHOULD BE CHARGING -- NOW IS THE TIME TO RAISE YOUR PRICES. REMEMBER: The only two ways to increase profitability are to: 1) Increase Margin; and 2) Decrease Expenses
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Average Sale:
Not sure? Use AVG Selling Price tab to calculate
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AUTO-CALCULATION:
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# of Sales Required:
#DIV/0!
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# Sales Per Month:
#DIV/0!
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Sales Weeks per Year:52Adjust if less than 52 weeks
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Sales Per Week:#DIV/0!
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Sales Per Day:#DIV/0!
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Sales Per Day:*5#DIV/0!
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* Enter the # of selling days per week in the gold box above
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( ) Step #6Keep adjusting your "Average Sale" price in the blue box above until you are comfortable with the # of sales required to make that happen ("THE SECRET:" Keep RAISING your "Average Sale" price!)
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