The breakeven point (or point of return) is the minimum number of orders per day to cover all your costs. Knowing it is essential.
Step 1: List your monthly fixed costs related to delivery. Include rent, platform subscriptions, and equipment depreciation (tablets, printer, tickets).
Step 2: Calculate your average gross margin per order. Average basket - (raw materials + packaging + platform commission) = gross margin.
Step 3: Divide your fixed costs by your gross margin. The result is your minimum number of orders per month. Divide by 30 to get the daily threshold.
Fixed costs delivery = 600 EUR/month. Gross profit per order = 4 EUR. Threshold = 600/4 = 150 orders/month = 5 orders/day.
Attention: this calculation does not take into account opportunity cost. If your employees spend 2 hours per day on delivery, that time is not available for the conference room.
Objective: your profitability threshold must be reached before 12 p.m. on the average day. If it is not the case, review your prices or reduce your costs.
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