Estimate the BEP for your company's product. What pricing implications does your BEP present for achieving a short- or long-term ROI?
To estimate the BEP is one of the most important decisions to make and crucial since it will determine the likelihood of our business when it becomes profitable. It will help us determine variable costs such as materials and fixed costs such as rent. After looking at our business strategy and conducting the state of which revenue equals cost we can determine that number and can take a look at our cost from material to labor as well as any pricing structure needed for our application. To calculate our BEP, we need to know how many units and items will be sold, as well as the other points of sale in dollars. Once we've established that, we can split it down as follows: Break-Even Point (Units) = Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit).
When will break down even on all sales and dollars by dividing the fixed cost by the contribution margins? Break-Even Point (sales dollars) = Fixed Costs ÷ Contribution Margin
Contribution Margin = Price of Product – Variable Costs. We will look at it in every angle for contributions margins, contribution margins rations, profit earned followed by BEP, and fixed costs. The team will react and think about whether our current plan is realistic, or if we need to raise the prices. Moreover, we will consider and think if our product is going to be successful in the market and even if we think we are a competitor in the marketplace so that it can be determined. There's no guarantee that it will sell. “A break-even analysis allows you to determine your break-even point. But this isn’t the end of your calculations. Once you crunch the numbers, you might find that you have to sell a lot more products than you realized to break even” (et al., "Break-Even Point Formula and Analysis: How to Calculate BEP for Your Business," 2022).
What pricing implications does your BEP present for achieving a short- or long-term ROI?
The team has mentioned earlier that we can monitor these data to reduce implications in
achieving short or long-term goals for ROI. We will focus on waste and have a database that would show us where our dollars have been spent if it is advertising by monitoring performances and use of the application. We will focus on our return on investment (ROI) by focusing on those tactics that can produce income and higher returns. We can create based marketing analytics results that measure and target our existing customers and future audience. Moreover, create better content for marketing tactics, ensure relevant business metrics accurately, and become more competitive by marketing analytics. “When you know the relevant data of all your marketing campaigns, you can make concrete plans that return the highest ROI. Regularly monitoring your marketing efforts is the key to maintaining steady high profits, given the right strategies” (Haussman, June 25th, 2021).
What types of retailers or wholesalers (or a mix of both) would you recommend using?
One major wholesaler that we recommend using the application is hotels, we are focusing on the Marriott hotel. However, we can expand our profits to all hotel industries who would benefit from our product to increase revenue. Major Wholesalers such as Hotels and Motels can ease their employees' and consumers' alike by utilizing the fast and friendly application developed by our team. Hotel and employees will be able to see data in real-time as well as consumers have an easy navigation system that will help them with many features. However, we won't limit our expansion to just wholesalers. We can advance and edit our application to be user friends for all retail establishments such as Amazon, Meijer's, Walmart, and more. We will monitor and create data to see how our product is growing.
Given your recommended distribution channel strategy, what decisions about the retail or wholesale marketing mix must be made to form a viable retailer or wholesaler marketing strategy?
In future production, we can focus on marketing strategies with retailers such as Target, Amazon, Walmart, and Best Buy to name a few. We also put a lot of effort into personalizing the app for these retailers. Using both retailers and wholesalers can boost your chances of success as well as your consumer base. "Apps increase customer retention and loyalty, helping to provide sales support. Having an app allows you to demonstrate products and services, connect with clients. You can give users a better customer experience. Apps loading time is faster than mobile sites” (et al., "WHY IS A RETAIL APP USEFUL FOR BUSINESS?" 2021).
References
Break-Even Point Formula and Analysis: How to Calculate BEP for Your Business. (2022). , (), . https://squareup.com/us/en/townsquare/how-to-calculate-break-even-point-analysis
Haussman, Angela (June 25th, 2021). Maximize ROI With These 5 Marketing Analytics Tips. , (), . https://www.business2community.com/marketing/maximize-roi-with-these-5-marketing-analytics-tips-02414889
WHY IS A RETAIL APP USEFUL FOR BUSINESS?. (2021). , (), . https://theappsolutions.com/blog/development/app-for-retail/
Helpme28
Halfofdraft3.docx
0
