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How does the buying at wholesale prices and selling retail prices help you make a profit?

Well its really simple profit is equal to selling price- cost of good sold. therefore increasing profit comes from several actions, the cheaper you buy(wholesale) the more profit. The more expensive you sell (retail) the higher the profit. The next factor is volume, the more you sell the more profit you will receive thus all retail business tries to make the largest difference in price between wholesale and retail price while maintaining high sales volumes since you are probably a kid heres and example buying 20 ipods for 100 each (wholesale) and selling them for 200 each retail creates 100 profit per each ipod.


Differences between export marketing and export selling?

export marketing is when a company increases its market share by maintaining production in its own country while venturing into the international market. While export selling is the selling of products and services out of the origin country in order to make profit.


What is a dealer versus broker market?

A dealer market is a financial market where dealers buy and sell securities for their own accounts, facilitating transactions by providing liquidity and acting as intermediaries. In contrast, a broker market involves brokers who act as agents for buyers and sellers, executing trades on their behalf without holding the securities themselves. Dealers profit from the spread between the buying and selling prices, while brokers earn commissions for their services. Both markets play essential roles in facilitating trades, but their operational structures differ significantly.


What factors drive a company to exit its market?

Economic conditions, profit margins, growth potential, liabilities, performance, lack of execution, competition ...etc. Lack of proper planning,unnecessary liabilities,financial debts,improper Business management skills,low selling market,


Why is it a companies objective to increase profit and market share?

A company has to expand year on year to satisfy those who have invested in the company. This investment is normally through purchasing shares, if the company is listed on the stock market, or by buying a direct share in the company. This could be either the directors of the company,employees, or private investors. A dividend is paid to share holders based on the companies performance. This is very important to the investors because it offers a return on their investment . The share price of a company will increase if the company is making good profit on the assets it is selling. This will also please the share holders because their investment will have increased in value.

Related Questions

What term means buying land with the intention of selling at a profit when the market price raises?

Speculation


A buying a commodity such as land or stock with the intention of selling it later when the price goes up?

Speculation: the buying of land with the intention of selling at a profit when the market price rises. Source: United States History [in christian perspective] Heritage of Freedom(3rd Ed.)


What do mean by buying and selling of securities?

Buying and selling securities refers to the stock market usually. It is the buying and selling of stocks and mutual funds to make a profit.


What is the strategy of selling a stock and buying it back in order to potentially profit from fluctuations in the market?

The strategy of selling a stock and buying it back to potentially profit from market fluctuations is called "short selling." This involves borrowing a stock, selling it at the current price, and then buying it back at a lower price to return it to the lender, pocketing the difference as profit.


Is it possible to profit from both selling and buying the same stock?

Yes, it is possible to profit from both selling and buying the same stock through a trading strategy called "buying low and selling high." This involves purchasing the stock at a lower price and then selling it at a higher price to make a profit.


What does profit mean in math terms?

profit = selling price - (cost of buying + overheads)


Slave Trade?

A business of buying and selling people for profit


What does it mean to flip houses?

The simplest definition to flipping a house is buying a property with the sole intention of selling it for a profit at a later date. It's also important to be aware of the housing market for whatever neighborhood you look to purchase the property, as property values may or may not appreciate depending on where you buy.


What is a selling and buying price in stock market?

In the stock market, the selling price is the price at which an investor sells a stock, while the buying price is the price at which they purchase it. The difference between these two prices is known as the spread, which can indicate the liquidity and demand for a stock. Typically, the buying price is higher than the selling price due to the market dynamics of supply and demand, as well as transaction costs. Investors aim to buy low and sell high to realize a profit.


How did the French profit most from their activities in the world?

Buying and selling furs


Who are people that hoped to make a profit by selling and buying land?

speculators


Do communism deal with the term profit?

Yes--buying and selling involves profit and these occur in communist countries.