Why Value-Added Revenue Matters
What is value-added revenue? It’s the revenue you get for a project, minus the direct materials, outside purchases, and click charges. The remaining balance is value-added revenue, and that’s the revenue that you have available to operate the business.
A new blog by Consultant Mike Philie explains why this is important — mainly because, until you surpass your value-added breakeven costs for the month, you will not have a profitable month. Conversely, once you surpass your value-added breakeven, you will be profitable for that period.
Read his full blog here to learn why the value added number is more important than the actual sales number.