Money Making Webshop
Money Making Webshop
Out of context: Reply #2
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- xrusos0
10% is a number pulled out of your butt.
you need to have data to back that up. what is the profit margin per bag? is it 10% of their profit?
so if a bag sells for 30, but costs 20 to make, 5 to pay salaries, and 2 to pay electricity/utilities/other expenses for operation, then profit is only 3.
so do you get 10% of 3?
hard game to play there because profit margins can be manipulated if its in their best interest...
"o i'm sorry, we gave everyone a raise, so our margin fell 30%. so now you only get 10% of 2. bummer."
best practice in this type of plan is to charge per unit - no matter what the margin is. but in order to figure out how much to charge for, you need to understand what their profit margin is.