Friday, November 9, 2012

ARPD, CoGS and NPAT

I want to point out something.

The table I posted earlier is convenient, but one can use it to calculate further. That is calculate the profits derived from each unit of goods sold.

All you have to do is subtract CoGs off the ARPD.

For example:

Shop CoGS ARPD 
Name CoGs% ARPD B Profit
Liquor 58 42 17.64
Ice Cream 61 44 17.16
Supermarket 64 46 16.56
Cinema 67 48 15.84
Bookstore 70 50 15
Bedding 73 52 14.04
Infant 76 54 12.96
AV 79 56 11.76
Perfumes 82 58 10.44
Health Care 58 42 17.64
Cafe 61 44 17.16
Department 64 46 16.56
Spa 67 48 15.84
Musical 70 50 15
Building 73 52 14.04
Shoe 76 54 12.96
Computers 79 56 11.76
Antique 82 58 10.44
Drug 58 42 17.64
Ethnic 61 44 17.16
Auto Service 64 46 16.56
Bar 67 48 15.84
Sporting 70 50 15
Furniture 73 52 14.04
Clothing 76 54 12.96
Wireless 79 56 11.76
Jewelry 82 58 10.44
Convenience 58 42 17.64
Italian 61 44 17.16
Cosmetics 64 46 16.56
Karaoke 67 48 15.84
Toys 70 50 15
Electric 73 52 14.04
Leather 76 54 12.96
Electronics 79 56 11.76
Watch 82 58 10.44
Sport Cars 65 58 20.3
Hotspring 65 58 20.3
Sculpture 65 58 20.3
Marine Science 65 58 20.3
Arts and Crafts 65 58 20.3
Window Dr 65 58 20.3

Useful isn't it. The gap also widens with each level of Pricing Skill.

If you take it one step further, you can subtract off the 10% sales tax, leaving you with Net Profit After Tax (also known as NPAT in business). I'll leave you to do that.

Have fun,
ST

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