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Money Money Money... Finances, money, investing, saving, getting a job, anything to do with the green stuff that makes the world go around.

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  #1   Add warren1 to your ignore list  
Old 2008-09-17, 02:59
warren1 warren1 is offline
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Default My small business

Hey so basically my business is buying and selling... lets call them units. So I currently buy 56 units for $280. I sell these units in basically 3 diffrent choices. 1 unit for 10$, 2 units for 15$ or 3 units for 20$. It takes me about 10 days to sell all the units and the mean of 4 turnovers (4 times I sold out then restocked) was $94 net profit.

f you do the math I make 5.18 when I sell 1 unit, 5.36 when I sell 2, 5.56 when I sell them 3. So basically the same amount of profit from each sale. Now in your opinion would you rather sell less units but make the same profit as selling more units and not have to "restock" as often or, sell more units (for the same profit) but at first have to pick more often but be able to pick in larger amounts eventually which would increase the discount a tiny bit.

You also have to factor in the fact that when people are buying more units at a time they wont be buying as often.

any advice?
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  #2   Add crazywhiteguy to your ignore list  
Old 2008-09-17, 03:24
crazywhiteguy crazywhiteguy is offline
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Default Re: My small business

grams of weed...?
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  #3   Add static_void to your ignore list  
Old 2008-09-17, 03:37
static_void static_void is offline
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Cascadia
Default Re: My small business

Depends what you're going for. If you're just looking for a bit of extra cash to supplement an ordinary job, it sound like you're doing alright. Legally, however, since you're liable to have 56 'units' in your possession at any given time, you might as well buy and sell more. Like I said, it depends on what you're trying to do and how much profit you want to yield.

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Originally Posted by crazywhiteguy View Post
grams of weed...?
I was thinking cars, perhaps some blue mercedes or red mitsubishis.
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  #4   Add ComradeAsh to your ignore list  
Old 2008-09-17, 04:12
ComradeAsh ComradeAsh is online now
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Antipodes
Default Re: My small business

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Originally Posted by static_void View Post
I was thinking cars, perhaps some blue mercedes or red mitsubishis.
Stay away from the white omegas.
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  #5   Add just a name to your ignore list  
Old 2008-09-19, 22:10
just a name just a name is offline
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Cool Re: My small business

Well, here's a few hints.

First, your price per unit is a good thing to know. Right now, you're paying $5 per unit.

When you sell one unit, you make $5. When you sell a two-pack, you still only make $5. And when you sell a three pack, you're again making $5. You should calculate this by subtracting the unit price multiplied by the number of units sold from the sale price.

Now, let's look at your oppurtunity cost. If you sell each unit individually, for $10, you will make $560. Subtracting the cost of goods sold, you end up with a $280 profit. Here your profit margin is 100%, meaning for every five dollars of merchandise you sell, you pocket ten dollars.

But, if you sell everything as a a two-pack, you're only getting half of that profit- $140. Your profit margin essentially gets cut in half when you sell two-packs.

By the three pack, you're only making 2/3rds the profit of selling single grams. Around $90. This sucks.

Throughput is always good- meaning, as your sales volume increases, your profit over time increases. If you sell 10 single units each day, you've made $100, and half of that is profit. Sure, you may have to re-up more often, but you'll be making more cash.

You might want to consider reinvesting some of your earnings. Generally, the economy of scale can be utilized to your advantage, and most sellers offer substantial price breaks when you buy 112 "units" This way, you can lower your price-per-unit, and increase your profit margin.

Other suggestions:

Brand your product better. Use interesting bags with nice designs. As a side note: smaller bags make smaller portions seem larger.

Sell your product in an area with limited supply. The demand for units is relatively price inelastic- especially in areas where few alternatives exist. For example, in my country, persons under the age of 21 are not allowed to purchase or possess alcohol. This means that other alternative intoxicants are in higher demand among those whose access to alcohol is limited. Likewise, avoid areas with cheap and readily available alternatives.

Change your portions to better capitalize on existing markets. Sell half units for $5, full units for $10, one and a half units for $15, and two units for $20. These portions better preserve your profit margin.

Increase your market share by hiring other people to sell some units for you. They can retain a certain percentage of the profit. You can maximize your profit by having them sell in areas where you don't currently have market presence, as their sales (which you will not make as much money off of) won't be made to your existing customer base.
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  #6   Add almightyares to your ignore list  
Old 2008-09-19, 23:37
almightyares almightyares is offline
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D!cks are for my friends
Default Re: My small business

This is fucking stupid. You are a fucking geek.

"well gais, I have a business [not really a business but I call it that cuz I make liek $10 profit in a month hehehe] but i buy and sell units"

Wow, fucking impressive! If you want actual help, give real information instead of trying to be super secret because we all know that Mr. FBI is gonna be at your parents house if you arent.
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  #7   Add Deviate to your ignore list  
Old 2008-09-20, 00:23
Deviate Deviate is offline
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Reino de EspaƱa
Default Re: My small business

Quote:
Originally Posted by almightyares View Post
This is fucking stupid. You are a fucking geek.

"well gais, I have a business [not really a business but I call it that cuz I make liek $10 profit in a month hehehe] but i buy and sell units"

Wow, fucking impressive! If you want actual help, give real information instead of trying to be super secret because we all know that Mr. FBI is gonna be at your parents house if you arent.
You say that but either way he cant win, had he said "I'm selling weed....." his thread would be closed after a torrent of abuse from people telling him to get a real job, he asks a question using correct terminology to get an answer and you flame him. It's a hard life for a drug dealer...
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  #8   Add Quantrill to your ignore list  
Old 2008-09-20, 02:39
Quantrill Quantrill is offline
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New Orleans, LA
Post Re: My small business

Nigga it's cold outside...
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  #9   Add fuckindouchebag to your ignore list  
Old 2008-09-20, 15:24
fuckindouchebag fuckindouchebag is offline
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Default Re: My small business

http://farm4.static.flickr.com/3275/2597816134_7529eb3d81.jpg?v=0

NOBODY MOVE!

YOUR ALL UNDER ARREST!

YOUR ALL BEING CHARGED WITH CONSPIRACY TO DISTRIBUTE MDMA!
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  #10   Add Stoned Snippy.. to your ignore list  
Old 2008-09-20, 16:18
Stoned Snippy.. Stoned Snippy.. is offline
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San Diego, CA Send a message via AIM to Stoned Snippy..
Default Re: My small business

Orange Cadillacs
Blue Apple Jacks
And White Maybachs.

Green 4 Leaf Clovers.
Yellow Polar Bears.
And Red Range Rovers.
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This thread continued for 2 pages in the real archive, 19 posts total - only page 1 survived here.
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