The calculator is setup to allow you to enter the retails and costs for the initial offer and three up-sell or add-on offers that are sold to the customer with their initial purchase. (# 1 – 18) Up-sells and add-on sales can add to both the revenue and profits generated from a campaign. For each up-sell offer, enter the retail value and the percentage of customers that you expect to purchase the up-sell offer. (# 2 – 4) Based on these factors and other costs associated with the campaign costs associated with taking and processing the order, the calculator will project revenue, profits, required investment, and cash flows.

A key variable in the calculation is the "Maximum media cost allowed" for an order. (# 6) It is the amount of advertising dollars that you are willing to spend on a per order basis. It is entered as a percentage of the total order value.

Enter your product cost for the initial offer. (# 7) Following that, enter the costs for the up-sell / add-ons offers that are sold with the initial offer. (# 9 – 10) The tool will calculate the average cost per order that needs to be added based on the percentages of buyers purchasing the up-sell offers with the initial offer.

For your calculations, you may or may not enter the initial TV production and taping cost depending on your preference. (# 24 and 47) They are usually amortized over the life time of the campaign and not included in an income and cash flow projection. If you expect your campaign to last for six months or less, enter the production costs in the appropriate cell. You may also enter any production costs associated with making changes to the TV advertisement. (# 25 and 48)

For the six month projections, enter the media budget for each month that you can allocate towards this campaign. (# 19) Based on the maximum media costs on a per order basis that you entered, it will calculate the number of orders per month. For the first month projections split the monthly media cost by week, based on how you think you will spend the money. (# 31) You may also enter any additional purchases of inventory made during the first month to support the campaign. (#36 - 39). The first week's purchases are calculated, but the following weeks are left blank for any additional purchases.

In the first month cash flow projections, the working capital required is calculated on a bi-monthly basis. (# 49) In the first week, on line # 50, enter any starting cash that you have at the beginning of the program.

To reset this calculator to the initial zero values, click on the "RESET" button at the bottom of the tool. To save a copy of your work, choose "PRINT" from the file menu and you can save your work as a PDF for later review and printing.

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