Sales Recovery  
     
     
          

It takes a significant amount of sales
to offset write-offs

The chart below clearly shows the amount of sales required to offset write-offs, which is predicated on the profit margin that companies operate on.

For example: a loss of $10,000 at a profit margin of 6% requires gross sales of $166,667 to recover the write-off.

Sales Recovery Chart

  Profit Margin
Loss 2% 4%    6%    8% 10%
$1,000  $50,000  $25,000  $16,667  $12,500  $10,000 
$5,000  $250,000  $125,000  $83,333  $62,500  $50,000 
 $10,000   $500,000  $250,000   $166,667   $125,000  $100,000 
$25,000  $1,250,000  $625,000  $416,667  $312,500  $250,000 
$50,000  $2,500,000  $1,250,000  $833,333  $625,000  $500,000 
$100,000  $5,000,000  $2,500,000  $1,666,667  $1,250,000  $1,000,000 

 		  
    
 

  Why CGC?      Collection Services      Outsourcing Services      Call Centre      Legal Services      Letter Writing      Credit Reports      FAQ      Contact Us      Site Map
   
 
Collection Group of Canada Inc.
2550 Victoria Park Ave., Suite 600
Toronto, Ontario M2J 5A9
Tel: 416-491-1313; Fax: 416-491-0860
Email: sales@collectiongroup.com