The profit increase calculator (Excel, 53 KB) prompts you to enter your existing figures to determine your current net profit based on cash flow and other relevant factors. It then guides you through various performance improvement factors, showing you how minor improvements can impact your profit.
Here are the performance factors.
Number of potential customers
If you reach more customers, you'll generate more sales, and that translates into increased profits. The profit increase calculator allows you to see how much additional profit you can make by improving your reach by a certain percentage
No business has a 100% conversion rate, so there's always room for improvement. The profit increase calculator shows you how much more profit your business could generate if you improved your conversion rate by a given percentage
Number of transactions per customer
As they say, it's cheaper to keep an existing customer than it is to attract a new one. The profit increase calculator allows you to examine how an increase in the number of transactions per customer will increase your profit
Average value of each sale
What if you could boost the average value of each sale by five, ten, or even 30%? Use the profit increase calculator to see the potential results
Net profit percentage
Have you ever wondered what would happen if you could increase your net profit percentage by a few percentage points? The profit increase calculator can answer that question, delivering solid dollar figures based on your existing data.
The profit increase calculator (Excel, 53 KB) automatically computes the number of paying customers. It also calculates total turnover, and resulting net profit based on the figures you enter. As you enter various improvement factors, pay attention to how the resulting net profit improves compared to your current net profit.