RE: [BaadAssGremlins] Impossible to make 300 % profit- Wrong!

["John W Rosa" <JohnRosa@xxxx>]

Onree-

What you are saying is that your investment is 25% of the
sale price, while profit was 75% of the sale price......but
you made a 300% profit on your original investment.

If I buy something for $10 and sell it for $15, that's a 50%
profit, as the $5 profit is 50% of the original price. Thus,
$20 would be a 100% profit, as I've made the same amount as I
originally spent. So, selling it for $40 is a 300% profit,
as I've made $30 over my $10 investment- 300% profit.


John

-----Original Message-----
From: Onree [mailto:onree@xxxx]
Sent: Wednesday, September 01, 2004 1:14 PM
To: BaadAssGremlins@xxxxxxxxxxxxxxx
Subject: Re: [BaadAssGremlins] Impossible to make 300 % profit



It is not possible to make 300 % profit. Profit can never exceed 100% and
profit percentage is defined as markup divided by selling price. Thus, if I
buy a carburetor for $10 and mark it up by $30 to sell it for $40, I have
made a profit of 75%. If I sell it for $20, I make a profit of only 50%.

The only way to even make 100% profit is if something costs you nothing. If
I find a carburetor lying in the street, and sell it for $20, or $40, or
$66, or $2955, my profit percentage is the same, 100% because the selling
price, whatever it may be, is all markup.

It is sure possible to have a 300% markup, but that is not the same as 300%
profit.

Onree

> on 9/1/04 5:39 AM, AMC74HORNET@xxxx at AMC74HORNET@xxxx did
write:

> He probably got these parts for next to
> nothing and is trying to make 300% profit.
> "Doc"
>
>





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