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General Asylum General audio topics that don't fit into specific categories. |
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In Reply to: Any assumption you make about what this guy, or any customer, may or may not do is absolutely…… posted by three_sox on January 18, 2005 at 02:49:56:
There are costs to selling any item , and the net profit (what you actually "take home") is the diff tween what the supplier pays and how much he sells for minus those costs. In small store salarys , rental etc are HUGE components of that , its not that the guy is stacking high and selling volume cheap where the cost per individual sale is not that material as a percent of it's selling price.
If you are naive enough to think that a gross margin of 9% is better than nothing , you need a course in business. If the minimum margim between making a profit and just changing money is 15 or 20% or whatever , selling at a 9% margin is losing money and it IS NOT better than nothing at all if someone else in the future is prepared to pay a price where the dealer actually MAKES something (and he would hardly be a cretin and buy unsealeable stuff) Theres a good saying that puts this in a nutshell , ""Turnover is vanity , profit is sanity".
In the original posters case , Time is money , there is only so much you can invest in a customer before it gets to a level where the cost of any sale eats up any profit , its at that point you have to "fire" the customer.
Rodney Gold
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Follow Ups
- Perhaps a course in business 101? - Rodney Gold 01/18/0509:53:39 01/18/05 (3)
- Yes, you certainly need to polish your skills if your post is indicative of your business acumen. - three_sox 22:45:24 01/18/05 (0)
- That's the old joke - Mr. Black 12:53:45 01/18/05 (1)
- But not far from the truth.... - uw312@aol.com 14:59:41 01/18/05 (0)
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