By increasing sales volume
Posted: Tue Jan 21, 2025 3:27 am
You just need to indicate the amount of investment and the income received
Having calculated the payback, it is easier to make the most optimal decision on the project. Continue investing in a profitable product or ending an unprofitable campaign. However, before "putting an end" to the project due to a weak payback, try to improve the ROI indicator.
HOW TO OPTIMIZE ROI
In most cases, payback is directly related to revenue and sales. , you will also increase revenue, which will directly affect ROI growth. For example, you can work on increasing the average check, expand or revise the range, or enter a new market.
EXAMPLE : we calculate the ROI of a project under the following conditions:
Income - 700,000 rubles
Investments : 600,000 rubles.
ROI = (700,000 – 600,000) ÷ 600,000 × 100 = 16.7%
To increase the payback, we worked on increasing brazil email list sales with the same costs. The income for the calculation period was equal to 1,500,000 rubles.
We calculate: ROI = (1,500,000 – 600,000) ÷ 600,000 × 100 = 150%
Due to the increase in income, the payback rate also increased.
Another way to increase ROI is to reduce expenses. For example, you can reduce the cost of a product by purchasing raw materials at a lower price. Or you can review marketing costs by abandoning ineffective events and campaigns.
EXAMPLE : we take the same initial data:
Income - 700,000 rubles
Investments : 600,000 rubles.
In the first example, the ROI was 16.7%. Now let's imagine that the company focused its efforts on reducing costs and managed to reduce costs to 400,000 rubles in the next period.
Having calculated the payback, it is easier to make the most optimal decision on the project. Continue investing in a profitable product or ending an unprofitable campaign. However, before "putting an end" to the project due to a weak payback, try to improve the ROI indicator.
HOW TO OPTIMIZE ROI
In most cases, payback is directly related to revenue and sales. , you will also increase revenue, which will directly affect ROI growth. For example, you can work on increasing the average check, expand or revise the range, or enter a new market.
EXAMPLE : we calculate the ROI of a project under the following conditions:
Income - 700,000 rubles
Investments : 600,000 rubles.
ROI = (700,000 – 600,000) ÷ 600,000 × 100 = 16.7%
To increase the payback, we worked on increasing brazil email list sales with the same costs. The income for the calculation period was equal to 1,500,000 rubles.
We calculate: ROI = (1,500,000 – 600,000) ÷ 600,000 × 100 = 150%
Due to the increase in income, the payback rate also increased.
Another way to increase ROI is to reduce expenses. For example, you can reduce the cost of a product by purchasing raw materials at a lower price. Or you can review marketing costs by abandoning ineffective events and campaigns.
EXAMPLE : we take the same initial data:
Income - 700,000 rubles
Investments : 600,000 rubles.
In the first example, the ROI was 16.7%. Now let's imagine that the company focused its efforts on reducing costs and managed to reduce costs to 400,000 rubles in the next period.