Profit is just a "spread"

Larry Janesky: Think Daily

Net profit is just a difference between the cost of running our business to supply what we do for our customers, and what we charge/collect for it.

To make a net profit or more of it, we just need to increase the gap between them. We can lower cost or charge more.

To lower cost, we can lower our direct cost of producing our product or service, or lower our fixed cost.

Charging more may involve increasing our prices or producing more that customers will pay us for without increasing cost (much).

However we do it, we must make a profit while creating and keeping customers, or we are toast.

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