Postage Strategy Margin Analysis

🚚 Postage Strategy Impact Analysis

📦 Product Details

📮 Postage Details

💰 Current: Charging Postage

Total Revenue per Sale: $110.00
Product Revenue: $100.00
Postage Revenue: $10.00
Total Costs: $32.00
Gross Profit per Sale: $78.00
Gross Margin: 70.9%
Monthly Gross Profit: $78,000

🆓 Free Postage Strategy

Product Revenue per Sale: $100.00
Total Costs per Sale: $32.00
Gross Profit per Sale: $68.00
Gross Margin: 68.0%
Required Sales Volume: 1,147
Monthly Gross Profit: $78,000
📈 Sales Increase Required: 14.7%
Additional Sales Needed: 147 units per month

📊 Key Calculations

Break-even Sales Volume =
Current Monthly Profit ÷ Gross Profit per Sale (Free Postage)
Sales Increase % =
((Required Sales - Current Sales) ÷ Current Sales) × 100