The Profit Tipping Point

management motivation pricing profit

What Day Do You Cross The Line?

Have you ever considered when in the week your business actually starts making a profit? Understanding this can be a game-changer in how you plan, operate, and set goals for growth.

Breaking Even Before Profiting

Every business has fixed and variable expenses—rent, payroll, materials, overhead, and more. If you took a snapshot of your revenue and expenses over a week, when would your business cross the break-even line?

For example:

If your total weekly expenses are $45,000, and you generate $10,000 per day, you don’t start making a profit until Friday afternoon (assuming your work week begins on Monday). That means your business is working just to cover costs for most of the week.
But if you generate $15,000 per day, you hit profitability by end-of-day-Wednesday, leaving the rest of the week as pure profit.

Why Does This Matter?

Pricing & Efficiency: If it takes until Friday evening to break even, it might be time to evaluate pricing, efficiency, or unnecessary expenses.
Sales & Growth Strategy: Knowing your profitability point helps set smarter sales targets. If you're breaking even late in the week, pushing for higher sales earlier could make a big difference.
Cash Flow & Risk Management: If your profit is squeezed into the last few hours of Friday, a single bad day could wipe out your entire profit margin.
Employee Motivation: Sharing this insight with your team can help them understand the financial impact of their efforts early in the week.

Take a Look at Your Numbers

To figure this out for your business, calculate:

Your total weekly expenses
Your daily revenue trends
The point where revenue surpasses expenses

Examples

Real-world examples:

It takes 40 service calls per week for the company to break-even. When do we usually hit "40" calls? How do we hit this number earlier in the week?
It takes 23 cars sold per week for break-even. When do we usually hit "23" cars? How do we hit this number earlier in the week?

Once you know when you truly start making money each week, you can take action to improve it—whether through pricing adjustments, increased sales efforts, or cost-cutting measures.

So… when in the week are you profitable? And what can you do to make it happen sooner? If it's a sales issue, read next week's blog post for the "Best Sales Technique You're Not Using."

Ryan Giles

Stay connected with news and updates!

Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.

We hate SPAM. We will never sell your information, for any reason.