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Re: Thinking of opening a business
Quote:
Originally Posted by Studio25
It depends on the base of your calculation. With your example, it depends whether you use the £10 cost price or the £110 sale price as your starting point. The way you and I work it out, it's a 1,000% profit, because the sale price of eleven times the cost price means a profit margin ten times the cost price.
With Bobs base of the selling price for profit calculation, the base price is 9% of the cost price meaning the profit is 91%
There is no "right" or "wrong" answer, but it does illustrate the need to understand how any given statistic is calculated.
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You're slashing his prices before he's even got going.  
In his example he said his original cost price was £100, not £10.
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'If you're going to be a Kant, be the very best Kant there is my son.'
Johann Georg Kant, father of Immanuel Kant, philosopher.
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