Re: Question for techs/operators


"Lloyd Olson" <ltg@xxxxxxxxxxxxxxx> wrote in message

No such thing as pure profit. You are over looking things like license,
insurance, electricity, somebody wipes off the glass you are paying an
employee salary plus cleaning supplies. Even the space they take up has
value when you add in rent, maintenance and up keep of building, property
taxes.

No disrespect, I hope you and the game's owner make a deal that is
profitable for both of you. I just saw the 100% profit and cracked up. LTG
:)

OK, semantics. If you normally pay $35 for an item that you normally sell
for $75 then you're normally making 53% GP on that item. If you make a
special purchase (that requires nothing of you beyond a normal purchase) on
said item at $20 each and continue to sell the lower costed items at $75
each then you made 73% GP on the down costed items. However, if you
continue to pay your commissioned sales staff based on a fixed "normal
price" (as opposed to an averaged cost or a serial numbered sku specific
cost) then the extra $15 profit dollars made on each of the down costed
items sold is 100% pure profit for the business. It increased the bottom
line with zero effort or expense to the business.

I'm not new to business, I've been operating one ($4M per year in sales) for
15 years successfully.

However, their business is currently housing those same 2 games and paying
for all of those incidentals that you mentioned, and has no intention of
eliminating those games, so my "pure profit" statement was referencing the
fact that they would collect money for doing nothing more than they
currently do, with no additional cost to them.

You're correct in saying that there are costs associated with having the
games in the business, my use of the term 100% profit should have been
qualified (or maybe used a different term).



.

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