The break-even point is where revenue exactly covers costs and the business makes neither profit nor loss. Every sale above it adds profit; every sale below it adds loss.
At product level, the break-even price is the lowest selling price that covers commission, ingredients, packaging and delivery. Selling below it means losses grow as orders grow.
At business level, fixed costs such as rent, staff and energy must also be covered, so it’s worth knowing how many orders a month you need as well as the profit per order.
FORMULA
Break-even price = (Product + Packaging + Delivery cost) ÷ (1 − Commission rate)
EXAMPLE
With product 120 TRY, packaging 15 TRY, no delivery cost and 14.4% commission, the break-even price is 135 ÷ 0.856 ≈ 158 TRY.
PRACTICAL TIPS
- 01Know the break-even price of every product.
- 02Don’t let campaign prices drop below break-even.
- 03Add fixed costs to your monthly order target.