Thinking of opening a business - Page 3

entwisi · 12-05-2009, 08:59

Quote:

Originally Posted by garinda

You're slashing his prices before he's even got going.

In his example he said his original cost price was £100, not £10.

he said a box of TEN of something for 100 quid hence 10 quid each....

Garinda in pedantic mistake shocker!!!

Studio25 · 12-05-2009, 09:58

Quote:

Originally Posted by entwisi

Garinda in pedantic mistake shocker!!!

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...

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.

garinda · 12-05-2009, 15:02

Quote:

Originally Posted by entwisi

he said a box of TEN of something for 100 quid hence 10 quid each....

Garinda in pedantic mistake shocker!!!

Err, it was what we call humour, hence the smilies, because he'd given the cost price in a different form than Derekgas.

entwisi · 12-05-2009, 17:58

Posted via Mobile Device
You dont get off that easily. The smilies were on the first sentence.!

andrewb · 12-05-2009, 19:16

If I buy something for £100 and sell it for £200 it's 100% markup and profit in the way I'd work it out. As the amount of profit compared to what it costs is 1:1.

turkishdelight · 12-05-2009, 19:50

Quote:

Originally Posted by andrewb

If I buy something for £100 and sell it for £200 it's 100% markup and profit in the way I'd work it out. As the amount of profit compared to what it costs is 1:1.

Thats exactly how i work it out its hundred percent profit on what you purchased the item at as you state on the claim buy an item for 100 pounds and sell for 200 pounds, but really i guess you have to get the item for nothing then if you sell it for 100pounds it would be classed as 100 percent profit as i see it.

Royboy39 · 12-05-2009, 20:03

Quote:

Originally Posted by andrewb

If I buy something for £100 and sell it for £200 it's 100% markup and profit in the way I'd work it out. As the amount of profit compared to what it costs is 1:1.

True that is called on cost profit....100% mark up.
The cost on retail would be 50%.
You have spent £100 and recieved £200.
The equasion £100/200 will give you 50%.
Simple calculation but not one your accountant would be satisfied with.

jaysay · 13-05-2009, 09:57

Quote:

Originally Posted by Royboy39

True that is called on cost profit....100% mark up.
The cost on retail would be 50%.
You have spent £100 and received £200.
The equation £100/200 will give you 50%.
Simple calculation but not one your accountant would be satisfied with.

This thread lost me two pages back, maybe that's why I wanted to be a joiner and not a business man Roy