Why does just one product show no revenue?

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

  • Price. The price for that product could be zero. On the menu, select assumptions/revenues/pricing.
  • Sales Volume. You could be selling no items of that product. 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 how many units you will sell per time period, you could have zero revenues if the number of units for that product are zero.
    • If you are using a sales model that defines sales based on effort by salespeople, 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 for this product is zero.
    • If you are using a sales model that defines sales 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 for this product is zero.
    • If you are using the customer acquisition/retention/referral model to define sales volume, you could have zero revenues if the Product Mix (the blue button on the right of the Sales Model screen) shows zero for this product.

Related Questions:

How do I choose prices?

How do I change the product mix?


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