For a Kenyan business, list fixed costs such as rent, salaries, subscriptions, and basic utilities. Then identify variable costs that rise with each sale, including product cost, packaging, payment charges, and delivery support. The difference between selling price and variable cost is the contribution from each sale.
Divide monthly fixed costs by the contribution per sale to estimate the number of sales needed to break even. Recalculate when supplier prices, rent, or selling prices change. Use a conservative sales estimate instead of assuming every enquiry will become an order.
KobStore can help a seller organise offers and monitor which products attract enquiries, but the business still needs its own cost calculation. Clear online visibility is useful when it is connected to a profitable sales target.
