Deciding how much to charge for a product or service based on costs and market trends. A clear plan helps attract customers while still making a profit.
What to consider
Include all costs in the projection.
Use conservative estimates.
Compare projections with actual performance for adjustments.
Real world scenarios
A restaurant owner in Boston projects next year’s profit by considering expected sales and increasing labor costs.
An e-commerce business estimates future profit margins based on seasonal sales trends.
A consultant calculates projected profits from a new client contract before signing.