KENYA · GUIDE 0014 · EDITION 4.2
Beetroot growing - Pricing, break-even and cash flow
Price an accepted unit, not an activity title
Start with this sale unit: graded kilogram.
Decide whether beetroot is sold for intact cooking portions or extraction, and align root size, trimming and packaging with that customer's actual preparation equipment.
A quotation needs the accepted quantity or scope, exclusions, completion point, delivery arrangement and payment schedule. Without that specification, two apparently similar prices may pay for different work.
Build the direct-cost sheet
- planting material
- water
- delivery
Charge the trial for root cleaning, stained packaging replacements and the transport weight of unwanted tops when customers purchase only trimmed roots for their kitchens.
| Calculation | How to use it |
|---|---|
| Variable cost per accepted unit | Direct inputs, labour, delivery and measured losses divided by accepted units. |
| Contribution per unit | Agreed selling price minus variable cost per unit. |
| Period operating surplus | Contribution from units sold minus fixed overhead for the same period. |
| Break-even units | Fixed overhead divided by positive contribution, rounded up. |
Count rejected output, unsold stock and correction time. Keep fixed overhead in a consistent period; a daily contribution cannot be compared directly with a monthly overhead figure. If contribution is zero or negative, extra sales do not establish a workable break-even point.
Reconcile the cash separately
A customer's unpaid balance cannot pay today's supplier bill. List actual collections, advance payments, supplier deadlines, refunds and recurring bills by date. Separate refundable deposits and money held for an uncompleted commitment from funds freely available for expansion.
A grower may target juice buyers yet supply roots that create too much preparation work, leaving a nominally suitable crop commercially unattractive at the quoted price.
Test a weaker outcome
Recalculate with fewer accepted units, a delayed customer collection or a higher input quotation. Change one assumption at a time to see which constraint matters. Use the actual pilot record: Record trimmed root weight, preparation losses, customer equipment feedback and the accepted pack arrangement, then compare repeat demand for the specific use selected during trial.
Do not interpret the invented financial teaching exercise in the complete manuscript as a market price or predicted income. Replace its assumptions before using it for a real decision. The public planning tool can help with arithmetic; it does not validate the inputs.