Adding items - impact good or bad

Caly

Board Regular
Joined
Jul 19, 2015
Messages
160
Office Version
  1. 365
  2. 2013
  3. 2011
  4. 2010
  5. 2007
Platform
  1. Windows
Hi I have a list of items that a customer buys but am looking to see if moving them to another customers pricing structure will hurt or help. If it’s a value then will love them but if it hurts then will leave them as is. But how can I show that?

Example
Customer A buys Product A for $10; cost is $4. They buy 150 units annually, total sales of $1,500.

The other customer(customer b) has a price of $5 and only buys 20 units annually.

Adding the customer A to customer B would bring in more sales but at a lower price and margin would then be less so I would think that’s not good. But what is teh best way to illustrate this?
 

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Current sales value: (150*$10)+(20*$5) - (150+20)*$4
= $1600 - $680 = $920 profit
Compared to what, I don't know. Maybe

Test sales value:
170 units sold for $5 which cost $4 each to make is a no-brainer. That's a profit of $1 each times 170 = $170

It's bizarre that the customer who buys 20 pays half of what the customer who buys 150 pays. Either you mistyped something or I'm out to lunch?
 
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