People that have small businesses like printing business and many others are unaware of the money they are spending on the printing. This makes confusion about the cost of inventory and other costs, and it is difficult to calculate the profit of the printing business. The important key to ensure the costs that don’t get out of your control is to calculate ROI. ROI is Return on Investment can be calculated by dividing the net profit with the total investment. This makes the calculation of the profit and expenses in online printing easy.
Let us know how to calculate the ROI of the printing business by following some of the steps which are as follows:-
- Number of orders per day
You need to do the entry regularly of all the orders that you have taken daily. You need to take the data of which you want to calculate ROI and divide the number of orders with the number of days of that specific period.
- The average value of the order
You can get the average value of the orders simply by dividing the total revenue with the number of orders you get. The average order value also helps you to evaluate the marketing efforts that have been made and the performance according to the pricing strategy. You can calculate the total number of orders by calculating the average order value.
- Splitting the average number of orders
You can split the average number of orders into two parts, which include orders from recurring customers and new customers.
You will get the number of orders from the new customers and repeated customers by splitting the average number of orders. You can easily calculate the ROI of your printing business by these steps.