Breakeven
point and Marketing Budget
In
order for us to achieve the $ 280,000 in annual sales
we have to sell 6.3 sculptures/ year using the mathematical average by adding up the sales prices of already existing and sold sculptures and dividing that
figure by the number of items
sold.� Using a very conservative figure and
excluding his most expensive pieces (a $ 450,000 original and $170,000 museum edition
sculpture)� we must sell 13.1 sculptures a year. This also assumes
that Doe does not receive
any commissioned orders at all in the first year.
Taken the
sales history of him making 90% of his pieces by larger commissioned orders it is very realistic to say
that with proper marketing selling 6.3 sculptures would break us even.�