Measuring Marketing

Chapter 104 Break-Even Sales Volume

Measurement Need

To determine the break-even sales volume.

Solutioni

The formula for break-even sales volume is common across industries, although the formula’s variables will vary, sometimes dramatically, by industry, and even within an industry.

$B{E}_{sv}=\frac{CPC\times NCC}{C_s}$

Where

BEsv = break-even sales volume

CPC = cost per call

NCC = number of calls to close

Cs = sales costs, expressed as a percentage of sales

There are no universal rules governing the number of calls to close a sale. Selling consumer perishables, such as canned foods, is very different from selling mainframe computers. The canned foods salesperson may be able to close a sale in two or three calls since the buyer regularly needs to ...