August 22, 2024 Copyright ©️ 2024 by goldkeen International Patent & Trademark Joint Office

 

 

◎ Components of Revenue

  • Revenue = Number of Customers × Average Spending per Customer
  • Revenue = Floor Area × Sales per Square Meter
  • Revenue = Operating Hours × Average Revenue per Hour
  • Revenue = Labor Hours × (Productivity per Labor Hour)
  • Revenue = Number of Business Days × Daily Revenue
  • Revenue = (Number of Seats × Table Turnover Rate) × Average Spending per Customer
  • Revenue = (Local Population × Visit Frequency × Market Share) × Average Spending per Customer
  • Revenue = (First-Time Customers + Returning Customers) × Average Spending per Customer
  • Revenue = (Walk-in Customers + Reserved Customers) × Average Spending per Customer
  • Revenue = (Dine-in Customers + Takeout Customers) × Average Spending per Customer
  • Revenue = (Male + Female Customers) × Average Spending per Customer
  • Revenue = (Individual Customers + Business Customers) × Average Spending per Customer
  • Revenue = (Individual Customers + Group Customers) × Average Spending per Customer
  • Revenue = (Direct Customers + Referral Customers) × Average Spending per Customer
  • Revenue = (Online Customers + Offline Customers) × Average Spending per Customer
  • Revenue = Number of Customers × Average Items Purchased per Person × Average Price per Item
  • Revenue = (Peak Hour Customer Count × Peak Hour Spending) + (Off-Peak Customer Count × Off-Peak Spending)
  • Revenue = (Foot Traffic × Entry Rate × Conversion Rate) × (Number of Sales × Average Price per Item)
  • Revenue = (Expected Net Profit + Fixed Costs) / Gross Margin
  • Revenue = Revenue from Main Operations + Revenue from Other Sources
  • Revenue = Revenue from Main Operations + (Listing Fees + Membership Fees + Advertising Fees + Course Fees + Rental Income)


◎ Regarding Break-Even Point

  • Store Revenue = Store Sales + Business Income + Other Income
  • Gross Profit - Expenses = 0
  • Revenue - Cost of Goods Sold - Variable Expenses - Fixed Expenses = 0
  • Revenue - (Cost of Goods Sold + Variable Expenses) = Fixed Expenses
  • (Revenue - (Cost of Goods Sold + Variable Expenses)) / Revenue = Fixed Expenses / Revenue
  • 1 - (Cost of Goods Sold + Variable Expenses) = Fixed Expenses / Revenue
  • Revenue = Fixed Expenses / (1 - (Cost of Goods Sold + Variable Expenses) / Revenue)
    = (Rent + Full-Time Salaries + Depreciation) / (1 - (Cost of Goods Sold + Part-Time Salaries + Utilities + Other Admin Costs) / Revenue)
  • BEP (Break-Even Point) = Fixed Expenses / Gross Margin (Contribution Margin)

 

As a business operator, don’t be intimidated by the numbers.
This is essential knowledge for elite students in the New Retail Entrepreneurship Consulting Class.

Special thanks to Instructor Yu Rui-Ming and Chain Business Adversity Consultant Lü Bing-Hong (content based on their lectures and consulting notes).

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