What price points are used in the example break-even analysis?

Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

BREAKEVEN ANALYSIS! Knowing your numbers dictates your profits!

25 Nov 2021 · 1 min

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A short YouTube presentation by Mike Andes (MBA for Entrepreneurs) that demonstrates break-even analysis using three example unit price points ($20, $12, $8). Andes explains how pricing affects the number of units required to break even and contrasts high-price/high-margin vs low-price/high-volume strategies for building scalable, profitable businesses.

Questions this video answers

$20, $12, and $8 per unit.

Chapters

This is an example of what you can learn in the MBA for Entrepreneurs course. This is the break even analysis based upon different price points. So here we have a $20 unit, a $12 unit, and $8 unit. And we can see how many units we need to create based upon the pricing in order to just break even. So we have our price and then we have our total cost. This is the type of thing you need to know in order to build a highly scalable and high profit margin business. Because look, if we price that $20 per unit, we we can sell way less units but have a very high profit margin versus if we have an $8 unit, the same product being sold for $8, we literally have to sell way more units in order just to break even and let alone make a profit.