Tuesday, September 2, 2014

Running the Numbers

You cannot help others if you don't take care of yourself first. 

No one would ever accuse me of being a numbers person. Math is not my thing, but if you hand me a calculator, and tell me the formula, I can figure a few things out.

If you want to know your profit in dollars:

Price - Fees - COGS = Profit
*This does not include storage, supplies, or inbound shipping. It's easier to take these numbers off of your totals rather than on individual items.
Example:
Price $18.99
Fees $6.21
COGS $6.78
Profit $6.00

If you want to know your ROI percentage (profit margin):

Profit divided by COGS x 100 = %

Example:
Profit  $8.53
COGS $4.00
=213% ROI

COGS - cost of goods sold
ROI - return on investment

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