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What makes a profit? Is it quantity of low product (or service) or a growing up customers?

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Question ajoutée par MOHAMED SHEHATA , Service Manager , Universal Motors Agencies (UMA)
Date de publication: 2017/06/24
Faris Abu Hannood
par Faris Abu Hannood , Marketing Consultant , Twist Marketing Agency

Greetings,

A long time ago businesses have faced excessed amounts of supply(excessed quantity) with not enough demand whereas the solution was to present such products as necessities of life to the society.

Result of making products necessities of life will demand a loyal customer who will accept such perception.

So I will go with growing up customers.

Omar Saad Ibrahem Alhamadani
par Omar Saad Ibrahem Alhamadani , Snr. HR & Finance Officer , Sarri Zawetta Company

Thanks

It is growing up customers...

while low product's - service's prices can be sold for once or one piece, loyal customer could buy more than one piece or more than once !

Adel Saif
par Adel Saif , Financial Manager , Reliant Contracting Co.

For the long run quantity of low product or services will make a profit 

Celeste Ann Mascarenhas
par Celeste Ann Mascarenhas , Health Care Assistant, Level 3 Nursing , Carlton Court Care Home

Quantity of low product (or services) will make a profit over a longer period of time, slowly, as vice-versa to a growing up of customers will bring in net profits quickly.  Growing Customers makes profits.

Profit happens when you subtract the total costs of your goods from the revenues the sales generate to find your gross profit. For example, if you purchase $10,000 of goods and sell them for $11,800, you would subtract $10,000 from $11,800 to get a profit of $1,800. Looking at the NI, MC, and Earning will give you an idea of the transaction involved for profit to take place.  

The most obvious, easily identifiable and broad numbers that affect your profit margin are your net profits, your sales earnings and your merchandise costs. On an income statement, look at net revenues and cost of goods sold, for instance, for a very general view of these major variables.

Net income (NI) is a company's total earnings (or profit); net income is calculated by taking revenues and subtracting the costs of doing business such as depreciation, interest, taxes and other expenses. 

Merchandise cost:  Those factors include the offering's costs, the demand, the customers whose needs it is designed to meet, the external environment—such as the competition, the economy, and government regulations—and other aspects of the marketing mix, such as the nature of the offering, the current stage of its product life cycle.

Earnings are the amount of profit that a company produces during a specific period, which is usually defined as a quarter (three calendar months) or a year. Every quarter, analysts wait for the earnings of the companies they follow to be released.

Hence these factors enhance the performance of sales and gross profits.  More customers bring more sales and more sales bring more money, turnover increases.....

Emmanuel Wamweta
par Emmanuel Wamweta , production supervisor , Tembo Steel Rolling

Several factors make a profit for a company of which both quantity of the product and growing up customers is part of equation. Other factors may include; quality, durability, uniqueness, creativity, innovation, brand loyalty, channel management, inventory management, sales promotions, customer relationship management of which "growing customers is a subset", economies of scale of which "quantity and outlets" is a subset to it etc.

boualem larbi
par boualem larbi , مراقب , الديوان الوطني للاحصائيات

Hi is the margin between the cost of a product or service with the price sold

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