SALES/LOSSES/NET
PROFITS
ADDITIONAL SALES NECESSARY TO OVERCOME LOSSES
BEFORE PROFIT MAKING STARTS AGAIN
The chart illustrated below exemplifies actual losses on accounts that require many times their amount in additional sales before profit making starts again. A vast majority of most companies in business today generate a yearly net profit of between 2% and 6% of gross sales.
|
A LOSS OF: |
2%NET PROFIT |
3% NET PROFIT |
4% NET PROFIT |
5% NET PROFIT |
6% NET PROFIT |
10% NET
PROFIT |
|
$ 100 |
$ 5,000 |
$ 3,333 |
$ 2,500 |
$ 2,000 |
$ 1,666 |
$ 1,000 |
|
500 |
25,000 |
16,666 |
12,500 |
10,000 |
8,333 |
5,000 |
|
1,000 |
50,000 |
33,333 |
25,000 |
20,000 |
16,666 |
10,000 |
|
5,000 |
250,000 |
166,666 |
125,000 |
100,000 |
83,333 |
50,000 |
|
10,000 |
500,000 |
333,333 |
250,000 |
200,000 |
166,666 |
100,000 |
|
20,000 |
1,000,000 |
666,666 |
500,000 |
400,000 |
333,333 |
200,000 |
|
50,000 |
2,500,000 |
1,666,666 |
1,250,000 |
1,000,000 |
833,333 |
500,000 |
|
100,000 |
5,000,000 |
3,333,333 |
2,500,000 |
2,000,000 |
1,666,666 |
1,000,000 |