Scenarios: Sales Components

Sales are an important aspect of any business initiative. Learn how to use each of the four sales components in building What-If Scenarios.

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Sales Components

Inside the Scenarios tab, once you create or modify a project, you will find the sales components in the upper-left box. There are four different sales components you may want to include; Increasing Revenue, New Sales, New Channel, Recurring Revenue. Read about these four options to get a full understanding of  how to forecast your client's strategic initiatives as accurately as possible. 

 

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1. Increasing Revenue

This sales component allows you to forecast how a change in monthly revenue over a given period of time would impact the company. 

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  1. Start by giving the sales component a name and decide on a start and end date.
  2. Enter the monthly revenue change and decide how this will affect cost of goods sold. 
  3. You must fill out all 5 pieces of information in oder to Add this component to your project. 
  4. Please note: to increase the revenue enter a positive number, and to include a decrease in revenue please use a negative number. 

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2. New Sales

This sales component allows you to forecast what will happen if sales occur for a new product or service over a given period of time.

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  1. Start by giving the sales component a name and deciding when the product or service will be launched.
  2. Enter any one time start-up costs and the anticipated monthly revenue generated from this product.
  3. You will automatically get a projection for the expected costs, which can be overwritten if needed.
  4. Lastly, you can assign a ramp up period and establish any additional growth targets. 
  5. You must fill out all pieces of information in oder to Add this component to your project. If there is not an expected start-up cost, please enter $0. 

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    3. New Channel

    This sales component allows you to forecast what will happen if an existing product or service is sold into a new market or channel over a given period of time. 

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    1. Start by giving the new channel a name and enter the launch date (when sales will begin) and how long the channel will be open.
    2. Enter any one time costs and the ongoing monthly costs for the channel.
    3. If there are monthly expenses for sales, technical, or customer support needed you can fill that information in.
    4. To complete, enter your monthly sales target and estimate how long it will take to reach you goal.
    5. You must fill out all pieces of information in oder to Add this component to your project. If there is no expected monthly expenses for support, please enter $0.

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      4. Recurring Revenue

      This sales component allows you to forecast recurring revenue models for new products or services. 

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      1. Start by giving the sales component a name and selecting when it will start and end.
      2. Enter any one time costs associated with this model.
      3. Enter the details of revenue and cost per unit sold.
      4. Decide how many units will be sold initially and what increase in sales is expected.
      5. You must fill out all pieces of information in oder to Add this component to your project. If there is no expected start-up cost, please enter $0. 

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      Thanks for reading! We hope you were able to take away something useful for when you are working in the Scenarios tab. If you have any questions please contact your account manager, or reach out to us at support@myprofitsee.com.