IE;
Financial Plan;
- Sale Price
I believe the sale price of Education Insight (Tutoring App) would be $1.99 . The reason why I would sell my product for $1.99 is that this a reasonable price to pay for an educational app because I didn’t make the price too big because I make the price to big, then the audience that I am directing my product at probably couldn’t purchase my at all as many parents don’t allow kids to pay money for apps. But I believe $1.99, is an easy, simple, reasonable price for an app with a lot of kids wanting it, I will make more money with a lower price than a higher price.
- Variable Cost (how much will it cost to produce the item each time?);
I believe the variable cost to produce this item would probably around $10 to make the app, but as more people download it and it becomes more popular I will increase the price.
- Business Costs;
I’m guessing including all of all my costs that I will need to spend on;
- Renting an Office
- Either Renting or Buying a work phone
- Paying tax/ bills
- Verifying your business
- Paying for ads
- Summing it up as a whole I believe to keep my business ruining I would pay $650 per month
Breakeven point;
- 502 products sold.
- The sum the I used to work it out was;
- 1000 (business costs) divided by 1.99 (app cost)