Why does just one market show no revenue?

Offtoa uses many of your stated assumptions to compute the revenue, so any of these could cause revenue on your income statement to be zero:

  • Price. The prices for all your products in that one market could be zero. On the menu, select assumptions/revenues/pricing.
  • Sales Volume. You could be selling no products in that market. On the menu, select assumptions/revenues/sales models. Offtoa provides you with many different techniques to specify your sales volume and when you select assumptions/revenues/sales models, you will view the one being used to compute your volume. Here are the possibilities:
    • If you are using a sales model that defines a planned market penetration per time period, you could have zero revenues if the market size is zero or if the market penetrations are zero.
    • If you are using a sales model that defines how many units you will sell per time period, you could have zero revenues if the number of units are zero for this market.
    • If you are using a sales model that defines sales based on effort by salespeople in each market, you could have zero revenues if the personnel category (on the menu, select assumptions/costs/personnel) is earning no salary, or if you indicated that the Ratio of Number of Employees to Units Sold is zero.
    • If you are using a sales model that defines sales in each market based on how much money is spent in a particular marketing and sales expense category, you could have zero revenues if no money was allocated to that expense category (on the menu, select assumptions/costs/other expenses), or if you indicated that the Ratio of Dollars Spent to Units Sold is zero.
    • If you are using the customer acquisition/retention/referral model to define sales volume in each market, you could have zero revenues if no money was allocated to that marketing and sales expense category (on the menu, select assumptions/costs/other expenses) that is driving customer acquisition, or if the personnel category (on the menu, select assumptions/costs/personnel) who is driving customer acquisition is earning no salary, or the customer acquisition cost (CAC) is extremely high, or the average order size (AOS) is zero, or the Product Mix (the blue button on the right of the Sales Model screen) shows zeros for all products.

Related Questions:

How do I choose prices?

How do I change average order size?

How do I change customer acquisition cost?

How do I change the product mix?


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