1. Export sales price
The export sales price is calculated based on a number of criteria. The commercial cost price is given: you now have to add additional costs (such as transport, insurance, margins brokers/agents etc.).
| Product |
Commercial cost price |
| Watercamp |
€ 347,85,- per item sold |
| Frst car cleaning |
€ 29,75,- per item sold |
| Your own product |
Shows by means of a calculation how you came to the commercial cost price. |
What to do?
- First: breakdown the export sales price by breaking down the various costs and margins: you’ll have to prove that you know wcactly how your export sales price comes together.
- Second: calculate the export sales price in local valuta.
- Last: calculate the export sales price in euro’s.
The bank and the company will need a forecast in order to assess the ability to meet financial obligations in the future.
2. Operating budget
2.1 What to do?
Put together an operating budget for maximum 3 years. Remember: This is an estimate of the income and expenditure (costs) of a company over a set period.
- Make clear how you achieved your target turnover for the set period. You are encouraged to use previous conditions and calculations!
- Explain the predicted cost of sales for the set period, including the purchase value of the predicted turnover as well as other sales costs.
- Then show the operating costs. In addition to the usual costs, you as an export company must also take into account the specific costs in the exporting country. Think, among other things, of these costs:
- Travel and accommodation costs in the exporting country
- Costs of intermediaries
- Transport and insurance costs
- Import duties
2.2 What to do?
Close this section with a break-even calculation.
By clicking the tab ‘Core’ you’ll be asked to upload the operating budget in MS Word. Make sure all calculations are clear and concise: if you use MS Excel for your calculations, remember to export the corresponding tables to your Word document.
3. Turnover share
- Your product has a total of 18 points of sale, where 3 of those are yours. Your product has a customer base of 280 customers. Your company sent 219 invoices in the past year.
- Your biggest competitor owns 54% of the market, where the market has a value of € 1.876.005.
What to do?
Calculate the turnover share. If you remember the predicted yearly turnover of your company, it’s going to be quite easy.
Relative turnover share =
(Turnover your brand with product Z / Total turnover product Z in total market) x 100%
4. Relative market share
A good knowledge of the market is decisive for success of your company. It is important to know how the company is doing compared to the competitors. Therefore, you have to be able to calculate the relative market share of your product compared to your competitor.
What to do?
Calculate the relative market share.
Relative market share =
(Market share of your product / Market share biggest competitor) × 100%
5. Average revenue per customer
- Your product has a customer base of 280 customers.
- Your company sent 219 invoices in the past year.
The average revenue per customer measures the amount of money that a company can expect to generate from one customer.
What to do?
Calculate the average revenue per customer.
Average revenue per customer =
Annual revenue / Total number of customers served
6. Numerical distribution
Numeric distribution helps to calculate the reach of your product in terms of percentage in the relevant market. It helps to determine how easy a particular brand is made available to customers. The most important function of the distribution channel is product availability, and by calculating the numeric distribution you get insight in this variable.
What to do?
- Calculate the numerical distribution.
- What do you think of the outcome? Explain your answer.
Numeric distribution =
(Number of points of sale brand Z / Total number of points of sale whole market) x 100%
7. Work efficiency
For management, it is important to check what the realized turnover is per fte. When the efficiency is known, it is easy for your company to make a comparison between various companies and their turnover per fte.
The company employs two full-timers for 40 hours a week and in addition, the company employs three part-timers, two for 24 hours a week, one for 20 hours a week. According to the industry figures, the yearly full-time salary per employed person in the sector is an average of € 85,000 and the turnover per FTE is € 223,150
What to do?
- Calculate the turnover per fte.
- Compare your answer with the industry standard given. What is your conclusion?
8. Explain the outcomes from the vendor rating system
Vendor ratings systems provide a process for measuring the factors that add value to the buying firm through value addition or decreased cost. The process will continually evolve and the criteria will change to meet current issues and concerns.
- Three suppliers are assessed on price, quality and delivery reliability.
- You have to decide which of the values are important for your product and based on your preferences you give a weighting factor for each value (1 , 2 or 3). Be sure to specify the rating factor in the calculations.
| Product |
Price |
Quality |
Delivery |
| Skamskip |
€ 9.865 |
99 |
100 |
| Global Logistics |
€ 9.669 |
90 |
97 |
| Fox Global |
€ 9.195 |
94 |
94 |
What to do?
Put a vendor rating together and explain the corresponding weighting factor for each value. Include your findings in the final Word-document, which you will be asked to upload.
