One slide shows one answer. This shows all of them.
A scenario lab for launching a new product or service. Move the price, the volume and the costs, and see what each does to profit, cash and the month the launch pays its way.
Every figure here is invented for demonstration. It is not any company's data.
Showing Starting plan
Year-1 profit
Cash neededdeepest point before it recovers
Units to break even
Kept from each sale
Cash over the first two years, before tax
Where the money goes
From sales at full price down to profit. Each bar is one assumption at work. Click a cost bar to change it.
Every price against every volume
Year-1 profit in thousands of dollars, for each price and each Year-1 volume at the median price, with your costs and buyer response. The outlined cell is your settings. Click a cell, or use the arrow keys, to try it.
Your settings fall between cells; the dashed outline marks the nearest one.
Year-1 profit, $ thousands
loss 75+
loss 25–75
loss 0–25
profit 0–25
profit 25–75
profit 75+
See the numbers, month by month
Net sales = units × price, less discounts and refunds, less payment fees on what customers pay. Delivery, marketing and sales = units × (cost to deliver one unit + marketing and sales per unit). Running and launch costs = running costs, plus the launch cost in month 1. Cash to date adds each month's profit to the last, before tax and the timing of payments.