Week 1 DQ 1 - customer such as rent, utilities, salaries,...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
What makes some companies more profitable than others? Companies that succeed versus those that do not are won or lost on profit margins. Two companies can offer the same product, yet one is profitable and the other is not. The company that is profitable is the one that markets itself in such a manner as to attract a greater number of customers. The key to remaining profitable is to provide the customer with an experience that leaves them wanting to return. The overall selection and shopping experience are going to be the key to remaining a profitable enterprise. What are the similarities and differences between profit and profitability? Profit is the difference between the cost of goods purchased and the sales of goods sold. The amount left over is considered profit. Profitability is the sustained ability to make more money than what it costs you to provide the item to the customer. After factoring all the ‘overhead’ that is required to bring a product to the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: customer such as rent, utilities, salaries, supplies, etc. Then subtracting the revenue that you have been able to generate through sales, marketing customer traffic, if you have extra you are considered a profitable company. If you have a deficit, then you are not a profitable company and will not be in business very long. Provide real-world examples to support your answer. When I receive my paycheck every week I have to factor all of my expenses for that week. If I have bills that total more than what I received in my paycheck, I am not in a profitable situation. However, if I have money remaining after I have paid all the necessary bills, I had a profitable week. In order to remain viable, I must insure that I have more weeks where I have monies left over than weeks that have a deficit. As long as the weeks with a surplus outnumber the weeks with a deficit, then I am in a profitable situation....
View Full Document

This note was uploaded on 12/13/2011 for the course BUSINESS BUS 210 taught by Professor Chericutter during the Spring '09 term at University of Phoenix.

Ask a homework question - tutors are online