Friday, June 19, 2009

Profit...greatly discussed - seriously misunderstood

Profit should be basically mean the same to anyone in business.

Sadly...it's not the case.

So if I buy something for $5, sell it for $10...that's $5 profit right?

So many sellers think this way. What they sometimes fail to think about: cost of driving around to get the item, listing/selling fees, paypal fees, mailing supplies, and so on.

Do that item on ebay, and you're probably making closer to $3, especially if you get the extra bells and whistles on your listing.

Granted, that's more or less a newbie error and they usually find out later when they (hopefully) crunch some numbers to see how profitable they are.

But I can tell a lot of them don't. I see their listings, the prices, and wonder why they are happy to make a buck or two off of a single sale.

Do you know how profitable your business is? Do you know how profitable you want it to be?

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