14/06/2025
Pidgin Business Wisdom
β¨β HOW MANY PACKS YOU GO SELL TO STOP TO BLEED MONEY? ββ¨
Make we break am down like ABC π
EXAMPLE: You dey run one Table water factory wey:
π§ Produce 200 packs per hour
π§ Work 8 hours/day Γ 20 days = 32,000 packs/month
π§ One pack (12 bottles) cost you β¦750 per pack For Materials to produce( Like Label, Cap etc)
π° You dey sell one pack for β¦1,700.
Your monthly fixed costs na: (No matter how many packs you produce)
π¨βπ Staff β β¦400,000
β‘ NEPA Light/DIESEL β β¦250,000
π§° Other wahala like maintenance β β¦100,000
Total = β¦750,000
π₯ BREAK-EVEN POINT (BEP) CALCULATION π₯ Na him we want use.
πBEP be say : Your Fixed Cost come devide am by wetin Dem dey call Contribution Margin. That Contribution Margin na Price wey you dey sell one pack minus your material cost which sometimes Dem dey call variable cost. π
See am Below π
π BEP = β¦750,000 Γ· (β¦1,700 - β¦750) β¦950
π BEP = 790 packs/month
π― Just sell 790 packs out of 32,000 and you don break even. Mean say at that point you no make profit and you no loose money.
π₯After that? Any pack wey you sell Na PURE PROFIT all the way! π₯πΈ You fit carry am self go Flex. π€£ππ€£π€£
π No just dey shout βwe need sales!β
π First know how many you need sell to even stop dey lose money. π°
Business no be guesswork. Na calculation. ππ
This na Public Education yarn from Your Ogbonge Consultant. π
My Name na Oliki Young