Have you ever wondered about the selling price — whether you're pricing your products or services correctly? And is working capital really necessary? In search of answers, we'll unravel together the mysteries behind fixed and variable costs, understanding the importance of meticulous financial management.

We'll dive into the sales price formation process, but first a reflection: how do you price your products or services? In today's exercise, I propose a practical challenge to broaden our understanding of costs and profits.

We'll explore the concept of discount policy and how it can generate profit even when we sell below cost. This strategy is often seen during promotions and specific sales periods where, despite reduced prices, profitability remains.

However, before diving into the cost tool, we need clarity on the concept of cost. What is cost to you? Sometimes it's hard to define clearly, right? Water, electricity, phone, rent, salaries... all considered costs, but there's a simple and liberating definition that I want to share with you.

How to fill in the Vehicle Cost Tool and enter the information into the Cash Flow

We'll understand that assets we acquire, although not costs, incur depreciation and other costs. For example: when acquiring a vehicle. The vehicle itself isn't a cost, but it generates expenses like alignment, balancing, tires, insurance, annual vehicle property tax, cleaning, tolls, fines, parking, gasoline, and many others. In this class, we'll cover where these items fit in the cost tool.

Let's classify your company's costs and begin building the structure of the cost tool!

COGS is the COST OF GOODS SOLD: the total cost value of merchandise sold during the month, generating the revenue.

In this class, we'll dive into the company's cost structure, the Business DNA, through studying the Structural Cost Formula. You'll learn to calculate profit correctly and also find the Break-even point.

In this class, we'll generate several insights on how we can work with and test scenarios for your company's growth.

What is your company's business DNA? You'll leave this class understanding it and knowing how to apply it in your business.

We end on a high note in this class, which will bring predictability and clarity to your numbers.