Tourism Indonesia - Komodo Island East Nusa Tenggara

Tourism Indonesia - Komodo Island East Nusa Tenggara

Komodo National Park

Komodo Island is located in Nusa Tenggara islands. The island is included in the Komodo National Park along the island of Rinca, Padar Island, Mota and many other smaller islands. Administratively, the island is located in the District of Komodo, West Manggarai regency, and directly adjacent to the West Nusa Tenggara province.

This island is the habitat for native animals dragons, giant carnivorous lizard. On the island there are more than 2,000 Komodo dragons live in the wild. You can see the Komodo dragon is chasing prey in many locations in this place. It's important to shop around together a guide for safety reasons for being here.

In 1986, UNESCO set Komodo Island and other islands in the Komodo National Park as a world heritage site because of the existence of dragons that can only be found in this region. The habitat of the endangered animals are outdoors with grassland, white sandy beaches and tropical rainforests.

Komodo Island won the award for the New Seven Wonders of Nature is a tribute to the seven best natural attractions in the world. Determining the winner is obtained from the results of voting and research experts, Komodo Island won the highest vote along with six other tourist attractions are the Iguazu Falls, the Amazon Rainforest, Puerto Princesa Underground River, Halong Bay, Jeju Island and Table Mountain.

Komodo reptile itself is a kind of giant carnivorous lizards that can reach 2-3 meters and weigh 100-165 kg. This animal has a scientific name Varanus komodoensis, while the local people call this beast as the 'Ora'. If seen, the Komodo dragon creepy, with a great body, sharp nails, scaly skin and has a forked tongue always stuck out. The main prey dragons are pigs, horses, deer, raccoons, buffalo and monkeys.

Komodo island's history at a glance

In 1910, Lieutenant Steyn van Hens Broek went to Komodo Island to prove his force report says that there is such an animal dragon on this island. Broek with his troops that have been trained and then decided to come to the island to hunt the animal. He and his troops managed to kill the dragons were then photographed and sent to the Botanical Garden in Bogor.

1912 was the year the first time the existence of dragons known to the public through a journal written Peter A. Ouwens and published in daily newspapers belonging to the Dutch East Indies. Ouwens is Director of the Zoological Museum in Bogor. Then in 1915, the Dutch government began to ban hunting dragons for fear of these animals will become extinct.

What can be done on Komodo Island?

In addition to seeing the life of dragons in their natural habitat, there are many other things you can do on Komodo Island:

Trekking

Komodo Island Beach

Komodo Island is not only contains animal dragons, dragons addition, there are many other animals that inhabit this island such as horses, deer, various species of birds, snakes, lizards and more. One way to enjoy this island is to do trekking. You can see the animals when trekking in Komodo Island.

When trekking, you will be invited to climb Mount Ara which has a height of 538 meters above sea level. You will also pass the Water Hole is a place to drink and rest dragons. You can see the komodo-dragons yanng drinking or shelter under a tree in the vicinity.

There are four trekking trails to choose from, ranging from short, medium, long to adventure. The trekking path length is 1-8 km depending on the type you choose. If you choose a long and adventure, you will be invited through the forest, the river and the beautiful hills. As for short, the trip will end up on a hill with amazing views of the bay. However, all four lanes will pass trekking Water Hole so you never have confused to choose either path.

During the trekking, you and the group will be accompanied by a ranger or guide once the handler dragons. Ranger will equip you with a forked stick that ends. It is said that the stick is made from a single tree species that could become a weapon to weaken the dragons. If the dragons attack or pursuit of a sudden, the forked end of the stick is used to suppress the neck dragons, dragons in a short time will weaken and stop attacking.

Diving and Snorkeling

Komodo Island

Komodo Island is not only offer the natural beauty of the land only. The underwater world in this island is equally beautiful. There are about 386 types of coral, 70 species of sponges, seaweeds as a home to thousands of species of fish, green turtles, whales, sharks, dolphins and others.

The underwater world of Komodo Island and the Komodo National Park known as one of the best dive locations in the world. When diving or snorkeling

stone Samsia

Samsia stone is one of the favorite diving spots. You can walk along a series of waterways and can interact with turtles, sharks and a wide variety of other small fish.

Shop

Store referred to as stone palace in the water. Located at a depth of 7 meters below sea level, you can enjoy the beauty of coral reefs with a variety of colors and the fish that swim among the coral.

Crystal Rock

This point is also a favorite of divers. Was at a depth of 5 meters, you can find a frog fish, Barramundi Cod, Parrotfish and several other fish species.

The best time for diving in these waters is the month of March to December. This is because the wind direction, water temperature, strong currents and seasons that affect visibility when diving starting either in these months.

What else is interesting on Komodo Island?

On this island there is a very unique beach that is Pink Beach. The beach is also known as the Pink Beach, but local residents prefer to call as Red Beach. Pink beach has sand pink, the color will become increasingly apparent during the wet sand by the waves.

Pink Beach Pulau Komodo Island

According to the research, the color pink on this beach due to the coral fragments were crushed and mixed with sand. In the world there are recorded only seven beaches with pink sand and on the island of Komodo is one of them.

Pink Beach Pulau Komodo Island

Pink Beach Pulau Komodo Island

The beauty of this beach not only on the color of sand is unique. Under the sea here is also famous for the beautiful. The beach is also often used as the location of diving and snorkeling.

transportation

Transportation on the island of Komodo can be done by air, land and sea or a combination of all three.

Air

If using a plane, you will fly from Denpasar to Labuan Bajo. After that you can continue the journey by ferry to the island of Komodo.

sea

You can leave from Tanjung Benoa, Bali, heading to Labuan Bajo. From Labuan Bajo, a trip to Komodo Island continued by using the ferry.

Land

There are buses from Denpasar to Labuan Bajo. The bus will cross by ferry. Arriving in Labuan Bajo, the journey can be continued by using the ferry again to Komodo Island.

In addition to these three options, you can also select Live on Board. If you choose Live on Board, you will stay on the ship for a few days to get to Komodo National Park. During the trip you can dive with a group and a guide. Facilities provided any complete accounting from the bedroom, dining and toilet. The price charged ranged between 175-10000 USD per night depending on how the package you choose as well as existing facilities. Boats depart from Bima, Bali, Lombok and Labuan Bajo.

Accommodation

Many tourists choose to stay at a hotel in Labuan Bajo. But apart from the hotel in Labuan Bajo, there are other lodging alternatives:

Boat rental

In addition to touring, you can also use the rented boat to stay. Most ships have been equipped with a bed, toilet and dining packages. The cost of rent and facility depending on the size of the vessel you hire.

The house keeper Komodo Island

You can homestay in home guard or ranger Komodo Island. This house-shaped house on stilts with a limited power supply. Generally, electricity will be extinguished at 22:00.

 Source: http://anekatempatwisata.com/wisata-indonesia-pulau-komodo-nusa-tenggara-timur/

Diving di Pulau Pawole, Halmahera Utara

(10-05-2015)

2 hal yang sangat ingin aku lakukan sebelum pindah dari Tobelo, adalah diving dan naik gunung Dukono.

***

Sudah hampir 4 tahun mengabdi di Bumi Hibualamo, mungkin sudah mendekati penghujung masa kerja di sini. Entahlah… biasanya di instansi tempatku bekerja akan me-mutasi-kan staf pegawainya yang sudah bekerja di suatu daerah minimal 4 tahun.

Alhamdulillah, kedua hal tersebut sudah kesampaian, setidaknya dalam kurun waktudua bulan di semester pertama tahun 2015, dan sekarang aku akan bercerita tentang salah satunya, yaitu diving pertamaku di Halmahera Utara.

Sekitar awal tahun 2015, muncul keinginan untuk diving di seputaran Tobelo, Halmahera Utara. Akupun mencoba mencari infomrasi dari internet, dan menemukan salah satu situs wisata yang juga menyediakan jasa untuk diving. Akupun mencoba menghubungi kontak yang tersedia di website tersebut dan membuat appointment. Namun, beberapa kali gagal diving karena cuaca buruk serta kesibukanku sebagai perantau di Bumi Hibualamo ini. Hingga akhirnya secara tidak sengaja suatu sore pada awal Mei 2015 di Tanjung Pilawang, bertemu dengan om Yus, guide diving yang pernah aku hubungi tadi, dan membuat janji untuk diving besoknya. Ternyata om Yus sudah bisa menebak kalo aku yang selama ini menghubunginya lewat email.

Besoknya…

Peserta diving-nya ada 5 orang. Aku, Ivan, Iksan, Dea, dan Danar. Awalnya katanya lebih dari 5 orang, tapi beberapa  peserta yang lain batal diving. Teman-teman baruku ini adalah perantau juga, kecuali Koh Ivan, dan mereka semua bekerja di bidang kesehatan.

buddies :D (kiri-kanan: Ikhsan, Dhanar, Dhea, Ko Ivan, aku :P)

Spot diving hari ini ada dua, yaitu Pulau Pawole dan Mou-mou. Whattt?? Pawole? - ini beneran kaget lho :P - Wahh.. sudah lama aku pengen ke pulau kecil yang terletak di belakang pulau Kakara ini. Akhirnya kesampaian juga, diving pulak. Yess…!!!

Dengan speedboat berukuran sedang bermesin 3, penyeberangan dari meeting point di Tanjung Pilawang (Tobelo)  ke pulau Pawole ternyata sekejap saja. Setidaknya lebih cepat lah daripada naik katinting. 15 menit ada kayaknya.

Nahkoda kita. hehe

Pasir putihnya langsung menarik perhatiankusejak pulau ini terlihat dari kejauhan. Apalagi airnya yang jernih dengan gradasi warna yang indah. Pohon-pohon yang hijau serta suasana yang sunyi, membuatku makin takjub saja dengan pulau yang tidak berpenghuni ini. Dan syukurlah, pas sudah tiba di pulau ini kami tidak langsung turun diving, tapi menunggu tabungnya diisi udara dahulusekitar mungkin lebih dari setengah jam. Jadi waktu menunggu bisa dimanfaatkan keliling sebentar menikmati suasana pulau. Hehe…

Pantai di Pulau Pawole

Aku hanya menyusuri sisi pantai yang menghadap Pulau Kakara saja. Selain pasir putih, ada beberapa bagian dari pantai yang terdiri atas batu karang. Terumbu karang di dasar laut yang dangkal terlihat dari pantai karena jernihnya air.

Pantai yang menghadap pulau Kakara

Pulau Pawole

Sambil menunggu, foto-foto dulu, main-main pasir dulu, ngerumpi dulu. Ya nggak sob? Hehe..

Awalnya aku berpikir pada hari ini pulau ini akan menjadi milik kami. Hehe. Tapi ternyata makin lama, pulaunya makin ramai. Ada sebuah perahu cukup besar merapat, dan menurunkan banyak wisatawan. Sepertinya wisatawan lokal. Wah, susana sunyi berubah seketika. hehe.....

Sambil menunggu tabung diisi udara

bakarlota dulu. hehe

Setelah semua tabung terisi udara, saatnya nyemplung. Hmm, sudah lama aku tidak pake alat diving, untunglah masih ingat caranya. Hampir sekitar 6 bulan tidak diving soalnya. Seorang diver mestinya refresh diving minimal 6 bulan sekali :P

Biar kekinian, sebelum turun, selfie dulu lah... hehe... 

Om Yus (kiri)

Ada anak-anak yang kepo melihat kakak-kakak dengan perlengkapan diving. Mereka pun tak segan-segan mendekat, bermain sebentar, ngobrol-ngobrol, tanya-tanya dan tentu saja foto-foto bareng. Nanti kalau udah besar, belajar menyelam pake alat seperti kakak ya dek? hehe...

Kasihan om Yus lagi sibuk, kitanya selfie :P

Kami diving dengan beach entry.Diving dimulai dari area pantai (entry)  yang landai (slope). Mengamati sisi dangkal yang didominasi hard coral.

area slope

Kemudian kami mulai meninggalkan area slopelalu turun dan menyusuri bagian wallhingga ke kedalaman lebih kurang 15m. Untuk terumbu karang sejauh penglihatanku sih lumayan. Meski tidak seberagamseperti di Bunaken. Visibilitinya juga bagus. Ikannya tidak terlalu banyak yang menampakan diri, mungkin masih malu-malu mereka kali yaa lihat orang baru. hehe...

menyusuri wall

sea fan

ada bintang di laut... :O

Seperti yang sobat bisa lihat di foto-fotoku, tidak terlihat warna warni terumbu karang. Hal ini disebabkan kurangnya cahaya matahari karena terangnya telah diserap oleh air laut. Semakin dalam, ada warna-warna yang kelihatan seolah pudar. Objek di dalam laut yang semakin dalam mumnya kelihatan berwarna hijau, cokelat, putih  atau biru. Namun apabila dinding-dinding atau terumbu karang itu disenter, maka akan tampak warna warni aslinya yang indah.

Karena sudah lama aku tidak diving, kesempatan ini sekaligus refresh diving dan sedikit demi sedikit memperbaiki skillterutama buoancy yang masih agak kacau banget. Haha... Buoancy atau daya apung yang baik memang sangat penting bagi seorang diver. Dengan buoancy yang baik, maka penyelaman akan menjadi lebih rileks, menghindari rusaknya karang karena tersentuh atau tertindih badan kita, dan meminimalisasi naiknya sedimen atau pasir halus dari dasar laut yang bisa terjadi karena kita terlalu "rusuh" ketika menyelam yang kemudian mengganggu visibility atau tingkat kejernihan pandangan dalam air. Selain itu, kontrol buoancy yang baik juga sangat bermanfaat dalam menjaga keseimbangan untuk kegiatan underwater photography. Jadi, manfaat teknik buoancy yang baik bukan hanya untuk kita sendiri, tetapi untuk penyelam yang lain di dekat kita. Untuk mendapatkan teknik buoancy, jam terbang dan latihan merupakan kunci utamanya.

Okk...!!!!! :D

Arus dalam laut Pulau Pawolesaat kami diving lumayan tenang jadi untuk penyelam pemula seperti saya masih aman lah. Hehe...

Selama penyelaman, aku buddy-an sama koh Ivan. Seorang apoteker dengan jam terbang penyelaman yang jumlahnya berpuluh-puluh kali lipat dari log-ku. Seru juga mendengar cerita pengalamannya yang sudah menyelam di berbagai tempat di Halmahera Utara dan Morotai dengan berbagai kondisi laut. Waahh....

nggak di darat, nggak di laut, back selfie is a must. hehe....

koh, tunggu koh... haha..

Setelah belum puas keliling di diving spot pulau Pawole, divingnya pun kami sudahi dan bersiap-siap menuju ke spot diving berikutnya, yaitu Mou-mou.

ascending....

***

Tips diving di Pulau Pawole.

• Sempatkan untuk menikmati suasana pulau, jangan cuman diving aja, hehe... ;
• Sempatkan untuk mengunjungi pulau-pulau sekitar (Pulau Kakara, Pulau Tagalaya, dll);
• Just enjoy :D 

*****

History of Tourism

The earliest
forms of leisure tourism can be traced as far back as the Babylonian and
Egyptian empires. A museum of “historic antiquities” was open to the public in
the sixth century BC in Babylon, while the Egyptians held many religious
festivals attracting not only the devout, but many who came to see the famous
buildings and works of art in the cities. The local towns accommodated tourists
by providing services such as: vendors of food and drink, guides, hawkers of
souvenirs, touts and prostitutes. 

From around the
same date, Greek tourists travelled to visit the sites of healing gods. Because
the independent city-states of ancient Greece had no central authority to order
the construction of roads, most of these tourists travelled by water, hence
seaports prospered. 

The lands of the
Mediterranean Sea produced a remarkable evolution in travel. People travel for
trade, commerce, religious purposes, festivals, medical treatment, or education
developed at an early date. 

Guidebooks became
available as early as the fourth century BC, covering a vast area of
destinations, i.e. Athens, Sparta and Troy. Pausanias, a Greek travel writer,
produced a noted “description of Greece” between AD 160 and 180, which, in its
critical evaluation of facilities and destinations, acted as a model for later
writers. Advertisements, in the form of signs directing visitors to wayside
inns, are also known from this period. However, under Romans rule is where
international travel became first important. With no foreign borders between
England and Syria, and with the seas safe from piracy due to the Roman patrols,
conditions favoring travel had arrived. Roman coinage was acceptable
everywhere, and Latin was the common language. Romans travelled to Sicily,
Greece, Rhodes, and Troy, Egypt and from the third century AD, to the Holy
Land. 

Domestic tourism
also flourished within the Roman Empire. Second homes were built by the wealthy
within easy travelling distance...

2000 years Before Christ, in India and
Mesopotamia

Travel for trade was an important feature
since the beginning of civilisation. The port at Lothal was an important centre
of trade between the Indus valley civilisation and the Sumerian civilisation.

600 BC and thereafter

The earliest form of leisure tourism can be
traced as far back as the Babylonian and Egyptian empires. A museum of historic
antiquities was open to the public in Babylon. The Egyptians held many
religious festivals that attracted the devout and many people who thronged to
cities to see famous works of arts and buildings.

In India, as elsewhere, kings travelled for
empire building. The Brahmins and the common people travelled for religious
purposes. Thousands of Brahmins and the common folk thronged Sarnath and
Sravasti to be greeted by the inscrutable smile of the Enlightened One- the
Buddha.

500 BC, the Greek civilisation

The Greek tourists travelled to sites of
healing gods. The Greeks also enjoyed their religious festivals that
increasingly became a pursuit of pleasure, and in particular, sport. Athens had
become an important site for travellers visiting the major sights such as the
Parthenon. Inns were established in large towns and seaports to provide for
travellers' needs. Courtesans were the principal entertainment offered.

  

This era also saw the birth of travel writing. Herodotus was the worlds' first
travel writer. Guidebooks also made their appearance in the fourth century
covering destinations such as Athens, Sparta and Troy. Advertisements in the
way of signs directing people to inns are also known in this period.

The Roman Empire

With no foreign borders between England and
Syria, and with safe seas from piracy due to Roman patrols, the conditions
favouring travel had arrived. First class roads coupled with staging inns
(precursors of modern motels) promoted the growth of travel. Romans travelled
to Sicily, Greece, Rhodes, Troy and Egypt. From 300 AD travel to the Holy Land
also became very popular. The Romans introduced their guidebooks (itineraria),
listing hotels with symbols to identify quality.

Second homes were built by the rich near Rome,
occupied primarily during springtime social season. The most fashionable
resorts were found around Bay of Naples. Naples attracted the retired and the
intellectuals, Cumae attracted the fashionable while Baiae attracted the down
market tourist, becoming noted for its rowdiness, drunkenness and all- night
singing.

Travel and Tourism were to never attain a
similar status until the modern times.

In the Middle Ages

Travel became difficult and dangerous as
people travelled for business or for a sense of obligation and duty.

Adventurers sought fame and fortune through
travel. The Europeans tried to discover a sea route to India for trade purposes
and in this fashion discovered America and explored parts of Africa. Strolling
players and minstrels made their living by performing as they travelled.
Missionaries, saints, etc. travelled to spread the sacred word.

Leisure travel in India was introduced by the
Mughals. The Mughal kings built luxurious palaces and enchanting gardens at
places of natural and scenic beauty (for example Jehangir travelled to Kashmir
drawn by its beauty.

Travel for empire building and pilgrimage was
a regular feature.

The Grand Tour

From the early seventeenth century, a new form
of tourism was developed as a direct outcome of the Renaissance. Under the
reign of Elizabeth 1, young men seeking positions at court were encouraged to
travel to continent to finish their education. Later, it became customary
for education of gentleman to be completed by a 'Grand Tour' accompanied by a
tutor and lasting for three or more years. While ostensibly educational, the
pleasure seeking men travelled to enjoy life and culture of Paris, Venice or
Florence. By the end of eighteenth century, the custom had become
institutionalised in the gentry. Gradually pleasure travel displaced
educational travel. The advent of Napoleonic wars inhibited travel for around
30 years and led to the decline of the custom of the Grand Tour.

The development of the spas

The spas grew in popularity in the seventeenth
century in Britain and a little later in the European Continent as awareness
about the therapeutic qualities of mineral water increased. Taking the cure in the spa rapidly acquired the nature of a
status symbol. The resorts changed in character as pleasure became the
motivation of visits. They became an important centre of social life for the
high society.

In the nineteenth century they were gradually
replaced by the seaside resort.

The sun, sand and sea resorts

The sea water became associated with health
benefits. The earliest visitors therefore drank it and did not bathe in it. By
the early eighteenth century, small fishing resorts sprung up in England for
visitors who drank and immersed themselves in sea water. With the overcrowding
of inland spas, the new sea side resorts grew in popularity. The introduction
of steamboat services in 19th century introduced more resorts in the circuit.
The seaside resort gradually became a social meeting point

Role of the industrial revolution in
promoting travel in the west

 The rapid urbanisation due to
industrialisation led to mass immigration in cities. These people were lured
into travel to escape their environment to places of natural beauty, often to
the countryside they had come from change of routine from a physically and
psychologically stressful jobs to a leisurely pace in countryside.

Highlights of travel in the nineteenth
century 

·       
Advent of railway initially catalysed business travel and later leisure travel.
Gradually special trains were chartered to only take leisure travel to their
destinations.

·       
Package tours organised by entrepreneurs such as Thomas Cook.

·       
The European countries indulged in a lot of business travel often to their
colonies to buy raw material and sell finished goods.

·       
The invention of photography acted as a status-enhancing tool and promoted
overseas travel.

·       
The formation of first hotel chains; pioneered by the railway companies who
established great railway terminus hotels.

·       
Seaside resorts began to develop different images as for day-trippers, elite,
for gambling.

·       
Other types of destinations-ski resorts, hill stations, mountaineering spots
etc.

·       
The technological development in steamships promoted travel between North
America and Europe.

·       
The Suez Canal opened direct sea routes to India and the Far East.

·       
The cult of the guidebook followed the development of photography.

Tourism in the Twentieth Century

The First World War gave first hand experience
of countries and aroused a sense of curiosity about international travel among
less well off sector for the first time. The large scale of migration to the US
meant a lot of travel across the Atlantic. Private motoring began to encourage
domestic travel in Europe and the west.  The sea side resort became annual
family holiday destination in Britain and increased in popularity in other
countries of the west. Hotels proliferated in these destinations.

The birth of air travel and after

The wars increased interest in international
travel. This interest was given the shape of mass tourism by the aviation
industry. The surplus of aircrafts and growth of private airlines aided the
expansion of air travel. The aircraft had become comfortable, faster and
steadily cheaper for overseas travel. With the introduction of Boeing 707 jet
in 1958, the age of air travel for the masses had arrived. The beginning of
chartered flights boosted the package tour market and led to the establishment
of organised mass tourism. The Boeing 747, a 400 seat craft, brought the cost
of travel down sharply. The seaside resorts in the Mediterranean, North Africa
and the Caribbean were the initial hot spots of mass tourism.

A corresponding growth in hotel industry led
to the establishment of world-wide chains. Tourism also began to diversify as
people began to flock alternative destinations in the 70s. Nepal and India
received a throng of tourists lured by Hare Krishna movement and transcendental
meditation. The beginning of individual travel in a significant volume only
occurred in the 80s. Air travel also led to a continuous growth in
business travel especially with the emergence of the MNCs.

Contributions of Entrepreneurship in Society

Entrepreneurs have much to give to society. Their contribution
to the welfare of society is of high order. A business person apart from making
money for him or herself also helps the society in many ways financially and
socially.

Financially, of course the respective country benefits by the
business carried out by entrepreneurs. At the same time many of the welfare
activities of the businessman improve the living conditions of the people of
that particular society.

How does an entrepreneur help the society?

Donations – A business person donates a lot of money for charity
purposes. From his or her earnings, he or she would like to help the
downtrodden and try to improve their living conditions.

Charitable institutions – A businessman or woman sets up various educational, medical
and vocational training institutions to provide the less privileged with
benefits which they normally cannot afford. The fees may be less or waived in the
case of a meritorious student. Hospitals are also run by these charitable
institutions.

Sponsorship – Many business people sponsor a candidate for higher education
or fund a child in an orphanage. In fact, many orphanages are backed by these
business people. Scholarships are provided to a poor student for him or her to
avail of better educational opportunities.

Welfare programs – A businessman or woman financially contributes to various
welfare programs, like helping the blind, orphans, widow etc. In times of
crisis, they help by donating items such as blankets, clothes, medicines etc.

Advisors to respective government – Many successful
business people participate in government activities in order to promote the
well-being of the citizens. The government often seeks their advice on certain
social and economic activities.

Business is essential for the progress of a nation. A successful
businessman or woman is an asset to the society. He or she can contribute to
the wellbeing of a society in several ways that improve the living conditions
of the people.

Break Even Analysis

                                                                                                

If you can accurately forecast your
costs and sales, conducting a break even analysis is a matter of simple math. A company has broken even when its total sales or revenues equal its total
expenses. At the break even point, no profit has been made, nor have any losses
been incurred. This calculation is critical for any business owner, because the break even point is the lower limit of profit when determining margins.

Defining Costs: - There are several types of costs to
consider when conducting a break even analysis, so here’s a refresher on the
most relevant.

·        
Fixed
costs: These are costs
that are the same regardless of how many items you sell. All start-up costs,
such as rent, insurance and computers, are considered fixed costs since you
have to make these outlays before you sell your first item.

·        
Variable
costs: These are
recurring costs that you absorb with each unit you sell. For example, if you
were operating a greeting card store where you had to buy greeting cards from a
stationary company for $1 each, then that dollar represents a variable cost. As
your business and sales grow, you can begin appropriating labor and other items
as variable costs if it makes sense for your industry.

Setting a Price: - This is critical to your break even analysis; you
can’t calculate likely revenues if you don’t know what the unit price will be.
Unit price refers to the amount you plan to charge customers to buy a single
unit of your product.

Psychology
of Pricing: Pricing can involve a complicated decision-making process on
the part of the consumer, and there is plenty of research on the marketing and
psychology of how consumers perceive price. Take the time to review articles on
pricing strategy and the psychology of pricing before choosing how to price
your product or service.

Pricing Methods:
There are several different schools of thought on how to treat price when
conducting a break even analysis. It is a mix of quantitative and qualitative
factors. If you’ve created a brand new, unique product, you should be able to
charge a premium price, but if you’re entering a competitive industry, you’ll
have to keep the price in line with the going rate or perhaps even offer a
discount to get customers to switch to your company.

One common strategy is "cost-based
pricing", which calls for figuring out how much it will cost to
produce one unit of an item and setting the price to that amount plus a
predetermined profit margin. This approach is frowned upon since it allows
competitors who can make the product for less than you to easily undercut you
on price. Another method, referred to by David G. Bakken of Harris Interactive
as "price-based costing" encourages business owners to
"start with the price that consumers are willing to pay (when they have
competitive alternatives) and whittle down costs to meet that price." That
way if you encounter new competition, you can lower your price and still turn a
profit. This presentation from Harris
Interactive offers a further explanation of these methods, and About.com offers
an overview of common pricing methods.

The formula: To conduct breakeven analysis, take
your fixed costs, divided by your price, minus your variable costs. As an
equation, this is defined as:

Breakeven Point = Fixed Costs / (Unit
Selling Price - Variable Costs)

This calculation
will let you know how many units of a product you’ll need to sell to break
even. Once you’ve reached that point, you’ve recovered all costs associated
with producing your product (both variable and fixed). Above the break even
point, every additional unit sold increases profit by the amount of the unit
contribution margin, which is defined as the amount each unit contributes to
covering fixed costs and increasing profits. As an equation, this is defined
as:

Unit Contribution Margin = Sales Price -
Variable Costs

Recording this information in a
spreadsheet will allow you to easily make adjustments as costs change over
time, as well as play with different price options and easily calculate the
resulting break even point. You could use a program such as Excel’s Goal Seek,
if you wanted to give yourself a goal of a certain profit, say $1 million, and
then work backwards to see how many units you would need to sell to hit that
number.

Limitations:
- It is important to understand what the results of your break even analysis are
telling you. If, for example, the calculation reports that you would break even
when you sold your 500th unit, decide whether this seems feasible. If you don’t
think you can sell 500 units within a reasonable period of time (dictated by
your financial situation, patience and personal expectations), then this may
not be the right business for you to go into. If you think 500 units is
possible but would take a while, try lowering your price and calculating and
analyzing the new break even point.