Absorption

In the new homes sales area there is a term called absorption. This is the number of homes expected to sell each month. With my DVD Video Brochure I intend to shatter this number. If it is 3 I expect it to be 5 or more. This is the value of the cost of the DVD Video Brochure. Not the production cost or the price, but the value of increasing sales from 3 to 5 or more.

I hear my product is expensive: $120,000. for 2 hours. How expensive is it to sell 3 a month when you could sell 5 or more.

My fixed cost are $30,000. What if I where to sell DVD Video Brochures for $30,000. and sell tons of them, but not make any money. What if I charge $120,0000. but nobody buys one. Somewhere in the middle is the answer. That is what I am looking for now.

There is a limit to how many DVD Video Brochures I can make, 4 at a time is a good estimate.

4 per year. I have to get as close to $120,000. as I can to be profitable, with taxes, insurance, payroll, equipment purchase and debt repayment. I can't sell for $30,000. as much as I might like to. If we can do 4 solid $120,000. gigs a year we will be OK.

Do we represent a value to our customer? If we can add to sales by 75% then yes we are worth it. How can I prove that now, with 1 customer? I can't, but it's Faith-simple faith. It will prove out as we go. Measured by absorption. The numbers don't lie.