Table 9 Basic cost-benefit evaluation of a dashboard tool. Data generated using JMP software Version 13.0
Revenues | Baseline | Fully-featured low price | Fully-featured high price |
|---|---|---|---|
Probability of purchase (out of potential clients) | 9.0% | 89.0% | 80.5% |
Product price | £250 | £250 | £1500 |
Annual revenue | |||
for 100 potential clients | £2250 | £22,250 | £120,750 |
for 500 potential clients | £11,250 | £111,250 | £603,750 |
for 1000 potential clients | £22,500 | £222,500 | £1,207,500 |
Present value of total revenue (over a period of 5 years with an interest rate of 3%) | |||
for 100 potential clients | £10,304 | £101,898 | £553,000 |
for 500 potential clients | £51,522 | £509,492 | £2,764,998 |
for 1000 potential clients | £103,043 | £1,018,985 | £5,529,996 |
Costs | |||
Development Cost | £412,242.00 | ||
For 100 potential clients | For 500 potential clients | For 1000 potential clients | |
Annual maintenance cost | £50,000 | £100,000 | £150,000 |
Present value of total costs (over a period of 5 years with an interest rate of 3%) | £641,227 | £870,213 | £1,099,198 |