Framework: Create a Product Sales Revenue Model (Excel Template)

Creating a revenue model and being able to forecast the key financial metrics related to product sales is a critical task when launching a new product or business or even optimizing an existing one. It allows you to make informed decisions related to pricing, adopting sales strategies and allocating resources more effectively.

Our product sales revenue model includes metrics including transaction price and number, monthly growth, cost of goods and all business expenses including R&D and product development, resulting in a clear Monthly Profit & Loss table as well Earnings before Interest and Tax.

By tracking or modeling revenue and expenses over time, you can rapidly identify areas where strong profits are being generated and areas which need rapid improvement due to excessive expenditure.

Having a strong and well mapped revenue model for physical product sales will allow you to make informed decisions, track the financial health of your company and attract investors who can fuel your growth.