The Wholesale Forums

[sylar88]

Hi,

Selling or not selling ?

My profit on my business is 5% net, but if i put the money in saving account i can get 8%.

8% profit, wihout work, stay in the chair, no fee for storage room, no fee for staff.

What di you think?

[iBuy]

Originally Posted by sylar88

Hi,

Selling or not selling ?

My profit on my business is 5% net, but if i put the money in saving account i can get 8%.

8% profit, wihout work, stay in the chair, no fee for storage room, no fee for staff.

What di you think?

8% of what? £10?

Frankly, I would say thats quite low. If I invest £10, I would look to make that into £50 to £100. That works out at around 500% to 1000%. So, 8% doesnt really compare. But, it could be 8% of £1,000,000 therefore being more than my 500%.

I think you need to explain yourself a bit clearer.

[sylar88]

For my business, i invest 200 000 euros.

In the wholesale market i make, the profit is 5%.

If i put that 200 000 euros in the bank, i get 8% profit. (no stock, no storage, no staff, no tax).

So i thinking why i work ?

[tobaccodropship]

I work for a living like everyone else.

But suppose the business you are investing with and getting 8% goes bust.

What you going to do then?

Never put all your eggs in one basket. It is better to diversify. Meaning invest with different businesses and not just one.

[geosamm]

so by working you are losing money..... mmmmm let me think. Well your not actually losing money but you are failing to capitalise on your opportunities which affects your future abilities.
I wouldnt think twice about ceasing trading with a 5% margin, unless your product sells billions of units, and banking the cash at 8%. 200,000 is not a huge amount but it is enough to attract better than 8% if split and invested

[geosamm]

Originally Posted by iBuy

8% of what? £10?

Frankly, I would say thats quite low. If I invest £10, I would look to make that into £50 to £100. That works out at around 500% to 1000%. So, 8% doesnt really compare. But, it could be 8% of £1,000,000 therefore being more than my 500%.

I think you need to explain yourself a bit clearer.

not sure the amount is relevant. 8% is higher than 5% no matter what the actual numbers are.
I take it you mean above that 8% of 1,000,000 is more than the 500% of 100?
The question as I understood it was
A] do I work for 5%
B] do I do sod all for 8%

[hardwareheroes]

Well, your 8% from interest will accumulate annually. i.e you will earn 16,000 interest on a 200,000 investment over 1 year. However, if you run a business, you can earn more by turning over the money more frequently e.g. if you sell 200,000 per month, you will earn 10,000 per month or 120,000 per annum.

[lighthousedirec]

For my business, i invest 200 000 euros.

In the wholesale market i make, the profit is 5%.

If i put that 200 000 euros in the bank, i get 8% profit. (no stock, no storage, no staff, no tax).

So i thinking why i work ?

I am thinking why are you working for just 5%?

Even Tesco's manage a bit more than that on billions of turnover. Raise your prices, if not find something else.

[studio1one]

5% of 200,000 Euros is a lot of money if you turn over your whole 200,000 euros every week. but very little if you do it once a year.

All depends how quick you move your stock.

[Andy777]

5% annual ROI is really small...

But I know companies, mainly in wholesale, who make even less: 2%-3%, but they are the biggest IT wholesale company in the Baltic region.

Their turnover is hundreds of millions £, yet profit is very small.