CH06 Cost, Price, and Revenue Model Checklist

Answer in the Worksheet Writer and save as Markdown

Source: Chapter 6 / KM043–KM054 (business-planning-handbook) This worksheet carries over the questions and frameworks contained in KM043–KM054 directly into a fill-in form. No new methodology has been added.

1. Estimating Cost from Activities (KM044, KM045)

List the execution activities of your business plan, and write the cost required for each activity.

Activity Category	Detailed Activity	Required Cost Item	Estimated Amount
Technology Development	(e.g., research personnel, prototypes, materials, technology licensing, outsourced development, equipment, information use)
Product Production	(e.g., materials, production personnel, rent, outsourced processing, transport/storage/packaging)
Sales & Distribution	(e.g., market research, securing distribution networks, advertising, exhibitions, samples, sales personnel)

Organize the cost structure under the items below.

Fixed costs (costs that occur at a constant level regardless of production/sales volume):
Variable costs (costs that change with production/sales volume):
Direct costs (costs directly traceable to a specific product/service):
Indirect costs (costs spanning multiple departments/products, hard to attribute):
Manufacturing cost (material cost + labor cost + manufacturing overhead, or purchase cost for a distribution business):
SG&A (costs of sales and operations):
Total cost (manufacturing cost/purchase cost + SG&A):

2. Value-Based Pricing (KM046)

What problem does the customer solve, or what value do they feel they gain, from our product/service?
What price range and willingness to pay will customers accept? (results of customer research/market response testing)
How can we adjust cost and product composition so that the business is viable at that price?
To justify a higher price, what basis of value (product, channel, service, brand) must we design and prove?

3. Competition-Based Pricing and Positioning (KM047)

Who are the actual competitors (including substitutes) that offer similar customer value to the same customer segment as ours?
What are those competitors’ price levels?
Are we choosing a low-price strategy or a high-price strategy? Are the conditions required by that choice in place (low price: accepting a lower operating margin and capital risk / high price: product, service, customer experience, channel, brand)?
What is our answer to “what customer, and what value, do we want to be remembered for?” rather than “how much should we charge?”

4. Channel and Price Structure (KM048)

Is the channel we use direct, indirect, or a mix?
If we use an indirect channel, what are the fees and distribution margin, and are they reflected in the price structure?
If we use a direct channel, do we have the resources to handle customer acquisition, shipping, and service ourselves?
Do we need a price band between the consumer price and the actual sale price for discounts, commissions, or consignment sales fees? If so, how large should that band be?

5. Customer Relationship Cost (KM049)

How much does it cost to acquire customers (personnel, systems, promotion)?
How much does it cost to manage the purchase experience and drive repeat/additional purchases?
Is this cost reflected in the current price structure (cost + margin)?

6. Revenue Streams and Revenue Model (KM050)

Answer the following questions.

Who pays?
What do they pay for?
How much do they pay?
When does the money come in?
Do they pay once, or repeatedly?

Mark the applicable revenue stream type(s) (multiple selection allowed): □ Asset sale □ Usage fee □ Subscription fee □ Lending/rental □ Licensing □ Brokerage fee □ Advertising □ Other ( )

7. One-Time Revenue vs. Recurring Revenue (KM051)

Is our business a model where the relationship ends after selling the product once, or a model where continuous relationship management after purchase generates recurring revenue?
If we carry fixed costs, must we acquire a new customer every time, or do existing customers generate revenue again?
Beyond the initial purchase price, have we considered the cost required for the customer relationship together with the possibility of recurring revenue?

8. Pricing Mechanism (KM052)

Mark how our business charges its price: □ Fixed price □ Negotiated price □ Volume-based unit price (B2B) □ Bidding/procurement conditions (B2G) □ Other ( )

Which of the following is this method most closely tied to: the negotiating power of the parties, inventory, timing, supply and demand, or bidding conditions?

9. Three Financial Lenses (KM053)

Viewpoint	Question to Check	Answer
P&L	Given price, sales volume, cost, and SG&A, how much margin remains?
Asset	What asset (value) accumulates through business activity?
Cash Flow	When does cash come in, and when does it go out? Is there any point where cash pressure could arise?

10. Checkpoint Before Moving to Business Feasibility (KM054)

Confirm that the following three items have been organized.

The price (P) grounded in customer and value has been organized.
The cost and margin structure that lets the business sustain itself at that price has been organized.
The revenue model explaining what the customer pays for and how has been organized.

If any of these three items is not yet organized, return to items 1–9 above and check again before moving on to calculating market size (P×Qty).