läpäisyhinta

Lläpäisyhinta, a Finnish term, translates to "break-even price" or "cutoff price" in English. It refers to the minimum price a seller must receive for a product or service to cover all of their costs, including both fixed and variable expenses. At the läpäisyhinta, the seller neither makes a profit nor incurs a loss.

Understanding the läpäisyhinta is crucial for businesses when making pricing decisions, setting sales targets, and evaluating the profitability of different products or ventures. It helps determine the point at which a business becomes financially sustainable. For example, if a company produces widgets, the läpäisyhinta would be the price per widget that ensures the total revenue generated from selling those widgets equals the total cost of producing them.

Any price above the läpäisyhinta will result in a profit, while any price below it will lead to a loss. Businesses often aim to price their offerings significantly above the läpäisyhinta to achieve desired profit margins. However, in competitive markets or during promotional periods, a company might temporarily set prices at or even slightly below the läpäisyhinta to gain market share or clear inventory. Calculating the läpäisyhinta involves a thorough analysis of all associated costs.