ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
Enter Data only in cells with BLUE text!
2
3
Increase Prices by
Lose Clients
4
10%Percent16%Percent
5
Current
6
Annual Sales $$500,000$550,000$462,000
7
8
Annual Payroll Cost
$250,00050.0%$250,00045.5%$210,00050.0%
9
All other Costs$200,00040.0%$200,00036.4%$200,00043.3%
10
Total Costs$450,00090.0%$450,00081.8%$410,00088.7%
11
12
Net Profit$50,00010.0%$100,00018.2%$52,00011.3%
13
14
15
In this example you can see that if you increase prices by 10% and lose 16% of your customers (trimming payroll by a similar amount) you end up earning the MORE MONEY doing less work!
16
17
Now it's your turn. Make a copy of this spreadsheet for yourself (either "add to My Drive" if you are a Google user, or File > Download as > Microsoft Excel if you are a MS user) and enter your company's info into this spreadsheet. Use last 12 month's data for "Current". Then set assumptions for a price increase and what percentage of clients you think you'd lose. Play with the numbers until you are happy with it!
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100