3.3. Sales Forecast & Turnover Planning

If sales are based on the quantity of turnover, turnover planning indicates the valued services in euros. The turnover, also called revenue or income of a company, is calculated by multiplying the services sold (products and services) by the sales price of the services in the exchange rate of the respective national currency.

If sales volumes can only be planned with some difficulty, the challenge of turnover planning lies in determining the selling price of the services. Basically, price determination is a much more difficult undertaking than is often assumed. The question is, what determines the price of a service? Is it the market price, i.e. the price that can be achieved in the market in competition? Is it a cost price, i.e. the price it costs to produce and sell the services? The price calculation is presented in the framework of costing. When calculating turnover in a business plan, one or more defined sales prices per product or service must be assumed.

The turnover planning should be as sound as possible. The figures - even if they are estimates - must be comprehensible. They are if they are justified on the basis of criteria.

It should be noted that sales revenue should not be confused with the profit of the enterprise. Profit is calculated by subtracting operating costs and other obligations, such as taxes, from sales revenue. In other words, turnover is the amount of products and services sold per unit of time multiplied by the respective current monetary value.

The presentation of the turnover planning can be done graphically in different ways.