Since I
have a quarterly magazine and I expect to make $71,300 with each publication. I
would need to sell 41 pages in one publication and once I sell the first 28
pages of the second publication; I am at break even. After six months, I should have reached break even.
I'm not sure if it will be difficult or easy to reach break even. On paper it appears to be relativity easy. However if I get into a position where I have to start discounting the price for ad space - it will make it difficult to reach $120,000.
I'm not sure if it will be difficult or easy to reach break even. On paper it appears to be relativity easy. However if I get into a position where I have to start discounting the price for ad space - it will make it difficult to reach $120,000.
Hi Margaret,
ReplyDeleteI believe this chart, along with the variable to be on par, but may be too conservative. The variable costs are very ambiguous, and thus, I think your break-even chart should reflect that the variable costs in your forecast are a bit conservative. Overall, very good job, the number tie well in relation to the type of business you are creating.
Hello Margaret,
ReplyDeleteGood clear chart. I noticed that you mentioned that you will need to sell 41 and 28 pages respectively. However, are we talking about advertisement pages? Since you mentioned that your revenue driver is selling advertisements, I would think you would mention selling types, sizes and amounts of advertisements. Just a thought. Thanks.
Magi,
ReplyDeleteGreat work on the diagram above. It's clean, easy on the eyes and straight to the point. I've never sold media print before, but your numbers sound feasible. While discounts may affect your total number of units necessary for breakeven, it still certainly seems possible. Another problem with discounts is once somebody gets one, they are going to expect them more often and those customers aren't good for your profitability. Good work