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What % are you happy with?

Discussion in 'Wholesale and Trade' started by T D Sales, Feb 15, 2013.

  1. TheDevil

    TheDevil

    Joined:
    Oct 27, 2009
    Messages:
    4,966
    200% on near enough everything, more in a lot of cases too ;)
  2. Bizi

    Bizi

    Joined:
    Aug 15, 2012
    Messages:
    1,967
    is it white & powdry stuff?
    ResellerLad, Anna357, Andy777 and 2 others like this.
  3. Jed

    Jed

    Joined:
    Feb 16, 2009
    Messages:
    8,880
    No :eek:
  4. T D Sales

    T D Sales Banned Member

    Joined:
    Aug 29, 2012
    Messages:
    1,032
    No its a browny black little rock thing ;)
  5. Bizi

    Bizi

    Joined:
    Aug 15, 2012
    Messages:
    1,967
    Chocolate Peanuts? yummmm
  6. T D Sales

    T D Sales Banned Member

    Joined:
    Aug 29, 2012
    Messages:
    1,032
    You and your sweets lol
  7. Stephanie dawn cerise

    Stephanie dawn cerise

    Joined:
    Dec 29, 2012
    Messages:
    386
    Rabbit poo.??????
    T D Sales likes this.
  8. T D Sales

    T D Sales Banned Member

    Joined:
    Aug 29, 2012
    Messages:
    1,032
    is there 200% profit in rabbit poo, right wheres the rabbits i want some poo
  9. Bizi

    Bizi

    Joined:
    Aug 15, 2012
    Messages:
    1,967
    to be honest never came across that but u just killed my moment :(

    sweets are what i live & work for :D

    Jedi if you get a pizza delivery bike and deliver locally you might never get caught :p just an idea of an evil mind
  10. Stephanie dawn cerise

    Stephanie dawn cerise

    Joined:
    Dec 29, 2012
    Messages:
    386
    I live in the country so there is loads where I live, if there's a market i can become a wholesaler. ;)
    T D Sales likes this.
  11. Stephanie dawn cerise

    Stephanie dawn cerise

    Joined:
    Dec 29, 2012
    Messages:
    386
    Sory Bizi, just anwering the describing game question. ;)
  12. shopafrolix

    shopafrolix Banned Member

    Joined:
    Oct 4, 2011
    Messages:
    4,662
    i try to double my money on most stuff. Not everything, but it also depends on sales. ie. electronics 10% but sales are high. I have 2,000 sets of taps which is a 150% mark up, but lucky to sell one a day. I'm a believer in selling at a profit not a quantity. I could reduce the prices on taps and sell more, but that would just mean same money for more work. Plus I deal in end of lines, so I'll probably never be able to get hold of more stock of the same item, so no point in selling out too quickly.
    Scorchio and Sc0tty like this.
  13. Ives

    Ives

    Joined:
    Feb 19, 2013
    Messages:
    143
    I'm trying to understand this. If I purchase items at £4 and sell them for £6, and after fees am left with £1, is that 25% profit? And is it not very smart to sell things for £1, even if you're just starting out and it's your first product? Should I be looking for something else?
  14. Gary

    Gary

    Joined:
    Aug 22, 2009
    Messages:
    16,364
    No, that's markup, if you make £1 profit on a £6 item you divide 1 by 6 to see your profit which would be approximately 16%
  15. Ives

    Ives

    Joined:
    Feb 19, 2013
    Messages:
    143
    I'm still confused. If I pay £4 for it and get £5, meaning I get back what I paid to purchase it, plus £1 to keep besides that, isn't that 25%? Or do I need to read about all this kind of stuff somewhere on the internet? I know nothing about this kind of thing!
  16. T D Sales

    T D Sales Banned Member

    Joined:
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    1,032
    This is where i get a little confused, sometimes lol, especially on low price goods. If i have a item i buy for £4 and sell for £9 (no fees as not ebay) then my profit is £5, but what is this in % terms as it cant be more than 100% can it
  17. uniqbuy

    uniqbuy

    Joined:
    Feb 3, 2011
    Messages:
    255
    Net profit margin = (net income/revenue) x 100

    So in above case =[ (9 - 4)/9] x 100
    55% ish
    T D Sales likes this.
  18. Pete

    Pete

    Joined:
    May 30, 2005
    Messages:
    14,067
    That is a Gross Profit of 20%. I've linked early in this thread to a thread that explains it all.

    Gross Profit, profit before any expenses, is the what percentage of the Selling Price that is Profit. Gary has it right. You divide the smaller profit amount by the larger selling price.

    You cannot know the Net Profit, until you know the expenses.

    Accounting is simple:

    Sales Price let's say 10

    Product Cost (with shipping, etc. included) let's say 6

    Gross Profit of 4 or 40% of the selling price

    Operating Costs - selling fees, telephone, rent, whatever let's say 3

    Net Profit (also called as Bottom Line) is 1 or 10% of selling price.

    This is what is referred to as GAAP - Generally Accepted Accounting Practices. Use QuickBooks, online accounting, Sage, etc. This is how it's done.

    Simple, Do not be misled. If you want to use figures that you can use when talking to others selling good, this is the language.

    Keep in mind the web is full of misinformation.
  19. Andy777

    Andy777

    Joined:
    Apr 24, 2007
    Messages:
    23,457
    That would be your ROI - Return On Investment.

    25% in your case.
  20. Sc0tty

    Sc0tty

    Joined:
    Jan 19, 2010
    Messages:
    701
    If you buy for £4 and:

    sell for £6 with £1 profit, then you profit is (Profit/Total Sales) £1/£6 = 0.16 16%

    Or, your return on investment (the amount you get back from what you originally invested (excluding other processing costs (ebay fees/ postage etc)))

    Invest £4 and sell for £6, with £1 costs, gives you £5. So the return on investment is ((Total sales - Costs)- Original Investment)/Original Investment (£5-£4)/£4 = 0.25 25%

    These are 2 different measures. Your profit margin (looks at the full picture) and your return on investment (only looks at the return from your original investment, ignores all other processing costs).
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