Quote:
Originally Posted by entwisi
Garinda in pedantic mistake shocker!!!
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It was an understandable mistake, though. The whole "box of 10" thing was a bit of a red herring...
Quote:
Originally Posted by derekgas
I understand that Gareth, my point was, there are more ways to work out the figures, and I am not so blinkered as to think that the way I work them is the only way...
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Oh, I realise that. I was really pointing out to those who seem to think there's something wrong in the way we calculate margins that there are two ways to do it.
It seems to me that starting with the cost price is the more intelligent way to do it. IMHO it's better to use cost price and margin to work out your sale price. That way if something is not selling, you ditch it because it's not profitable.
My mother-in-law sells at what she thinks her market will pay, so she must use cost price and sale price to work out her margin.
No single method is right, it's just important that when you're talking to someone like your bank manager, you're using the same concept.