Sales Section

The Sales Section

In this section, we will configure parameters related to the revenue of the business.

The Sales section is closely related to the Customer Channel section because Sales entirely depend on the number of new customers each month from each distribution channel to calculate revenue.

The parameters to be configured include:

1. Sales channel: This is the sales channel corresponding to the distribution channel configured in the Customer Channel section. Users must select a sales channel to apply the value of the number of customers from that distribution channel.

2. Channel Allocation: This is the allocation of the number of customers from the distribution channel into revenue calculation.

   For example, if a user creates a customer channel called Walk-in for a coffee shop with 100 people in January, and in the Sales section, the user declares Product name as Cake, Price as $5, chooses the Walk-in sales channel, with a Channel Allocation of 0.5, it means that 50% of Walk-in customers will buy the Cake product (corresponding to 50 people).

3. Product name: This is the name of the product or service that the business offers. On the BeeKrowd platform, when a user selects a business model, BeeKrowd AI will automatically generate products corresponding to that model.

4. Price: This is the selling price of the product or service above. This price will also be proposed by BeeKrowd AI to be compatible with the market price of that product or service.

5. Multiples: This is the factor of the number of times a product or service is purchased by a customer. For example, if a customer buys 2 products, then multiples = 2.

6. Revenue deduction: This is the revenue discount that the business must give when a customer purchases a product or service. Revenue deductions typically include discounts, rebates, commissions for agents, etc.

   This deduction will be applied and reduce the revenue of the corresponding product.

   The formula for calculating revenue is:

   Revenue = Price * End Customer of that month * Multiples.

   Revenue deduction is applied to the formula as follows:

   Revenue Deduction = Revenue * Deduction rate.

   Net Revenue = Revenue - Revenue Deduction.

   Example,

   Price = 100.

   End Customer of that month = 200.

   Multiples = 2.

   Revenue deduction = 10%.

   So, Revenue = Price * End Customer of that month * Multiples = 100 * 200 * 2 = 40,000.

   Revenue Deduction = Revenue * Deduction rate = 40,000 * 0.1 = 4,000.

   Net Revenue = Revenue - Revenue Deduction = 40,000 - 4,000 = 36,000.

7. COGS (Cost of Goods Sold): This is the % value of the cost of goods sold of the product or service. This value will be applied to the formula as follows:

   COGS = Revenue * COGS rate.

   Example,

   Revenue = 40,000.

   COGS rate = 0.3.

   So, COGS = Revenue * COGS rate = 40,000 * 0.3 = 12,000.

8. Days get paid: This is the number of days to receive payment from customers. This is the number of days the business has to wait to receive money from customers after they purchase a product or service. This value will be used in calculating accounts receivable.