Use Goal Seek to find which is better
I was making a comparison for an Amazon Seller on 2 options of payment, one with WorldFirst and the other with YouBiz.
When I compared the numbers, I saw that YouBiz exchange rate from SGD to USD was better than Worldfirst. But to make a transfer, YouBiz charged USD 30 for the transfer while Worldfirst charged USD 15. In this case, Worldfirst was better.
In this example, Worldfirst and YouBiz won one round each. So how do we choose which one to use? Based on USD 1000, Worldfirst won. But if the amount was increased, YouBiz was likely to win. The question is the amount to make the switch from WorldFirst to YouBiz.
I set up a comparison and use Excel Goal Seek to find that amount. Goal Seek is one of the oldest functions in Excel. Using Goal Seek, I found that the breakeven point was USD 3599. What this meant is that the Amazon Seller should use Worldfirst if the amount is below USD 3599. Once the amount is exceeded, then YouBiz should be used.
Is it troublesome to compare? It is but if the amount is huge, then it is worth making the comparison. That’s what a finance manager should be doing.
