Formula Five
Have you been following the stompernet promotion of Paul Lemberg’s Formula Five product?
If not then visit Formula Five watch the video and sign up for the future videos.
I would however like to clarify one point made in the video. The video seems to say that a 4 percent increase in sales price will result in a 15 percent increase in net margin. This is incorrect as the effect on net margin will vary according to the percentage Cost of Sales and fixed costs in your business.
The example in the video also asumes that Cost of Sales will increase by the same percentage as sales price, this is incorrect.
The attached excel file shows you some examples of what the effect of different fixed costs will have on this model.
Still looks like a great product.
Keep the faith
Damian
