One slide shows one answer. This shows every price and volume.
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.
From sales at full price down to profit. Each bar is one assumption at work. Click a cost bar to change it.
Scroll →
Nine prices against eleven volumes
Year-1 profit in thousands of dollars, at prices from $60 to $140 in $10 steps and Year-1 volumes at the median price from 1,000 to 6,000 in steps of 500, with your costs and buyer response. The outlined cell is your settings. Click a cell, or use the arrow keys, to try it.
Scroll →
Your settings fall between cells; the dashed outline marks the nearest one.
Year-1 profit, $ thousands. Higher is better: losses at the clay end, profits at the blue end.
−25 or less
−24 to −3
−2 to 2
3 to 24
25 or more
See the numbers, month by month
Scroll →
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.