Simple as Pie Break-Even Analysis
Rob and Joan Russell started baking pies from their home eight years ago. Their business idea was simple: There were no top-quality pies sold commercially in their mid-sized New England town. They produced no plan, no budget, and gave no thought to how much capital this venture would require. Their pies were indeed great and with little effort they built a customer base of individuals and restaurants that wanted the best and were willing to pay $12-15 per pie. Rob and Joan rented a kitchen from a catering firm that they could use during the caterer’s off hours. With the new facility they could bake 100 pies per day. Their revenue was soon running at a pace of $500,000 per year with monthly sales of 3,000 pies at an average price of $14.