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Unit 2: Marketing Opportunities and Strategies for Sustainable Farm/Ranch Businesses

Projected Sales Revenue.

Every marketing plan – regardless of the product or service – includes a statement about projected gross sales revenue. Again, this is a simple calculation that can be very revealing as it is an instant financial indicator of the farmer’s marketing strategy. Projected gross sales revenue is also looked at closely by banks, lenders, and potential business investors.

(a) = Potential sales volume (# of units expected to sell)
(b) = Price per unit
(c) = Gross sales revenue

(a) x (b) = (c)
Example: 12,000 lbs oranges x $1.50 per lb. = $18,000 gross sales revenue

Sales projections are only as meaningful as the numbers that go into the calculation. You should not expect to get this number exactly right the first time (or second or third time for that matter). Market conditions are always changing and buyer assumptions may need refining. But the gross sales estimate is a good place to begin planning for production and other marketing purposes.