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I am in the middle of negotiating with a new retail buyer. Does anyone have any insights how I calculate my break even threshold?

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We have a ton of information on retail metrics in our Knowledge Center, and we specifically address this question as well: https://help.replogic.com/understanding-product-distribution-and-retail/what-is-a-good-formula-for-break-even-analysis. "There are several ways to look at this, but the key is to separate variable and fixed costs (rent, non-commission employees, etc). You then take the fixed costs and divide by the gross margin percentage, so a lower gross margin should require higher sales to reach break-even (Break-Even Sales = Fixed Costs / Gross Margin Pct)."

Checking out the Knowledge Center now. Perfect!

Drew Shelly

Davis Springs LLC

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