★ Financial stuff / P&L (Profit & Loss)
I would like to start with this topic, since profitability is important to any company.
As one of my KPI, I’m responsible for positive OP (operational profit). This is the profit that the company gets after we deduct from our NS (Net Sales) the following spending’s:
· CoGS (Cost of Goods Sold),
· AP (Advertising & promotional spend)
· Logistics
· Service (Customer Support)
· Commission
· Royalties
· Direct SGA (sales general and administrative expenses for local head count)
· Indirect SGA (sales general and administrative expenses for overseas office)
As an example, you may see a full year PL below. From 10 000 $ Net Sales and the spending below. OP will = 1 021 $.
Why I start with this?
Because we will need to understand the price structure of the product in the future, based on the price structure we will understand how much NS we make from selling our product and after deducting all the above expenses, we hit our OP.
@ lightonus #pmnotes #note2
Tag along, take care and see you soon!