Document kzkDJZ8aNkogYX0wd7YoVjn0

A Fe w Po in t e d Pa r a g r a p h s o n Pr o f it s By GEO. H. GRIFFITHS Uanepmg Supervisor ef Prim - -* > t : ;:* *i :v Th e Sh eo w ih -Wil u ah s Col ;> eunuoo, omo 0007-SWP-000012201 YOU-ARE IN BUSINESS TO -MAKE -MONEY The way to make money it to aell aocnethinf foe mere than it coat. Therefore jroo most know your cost. Coot is Material, Labor, and Bxpenae. Money spent in learning with .reasonable , accuracy what your cost is and its percentage to sates, is an investment-and not an expense, if you use the information wisely. Guesswork is unsafe and poor business practice. Keep at least a record which sriD show you exactly what your sales are and what your total expenses are. See that all expenses are recorded within die year to which they apply. If you have not kept such a record, begin now. If you have to estimate your coat of doing business, be sure that you do not overlook any Hem of vp----, mid be sure that Hems which are paid ' only once or twice a year, such as Taxes, etc., are proportionately distributed. In figuring cost of doing basinms die only safe plan Is to take average sales and normal espmset for same period--a whole year is beet. Divide your total npcnscs by your total sales. It is die safest method. No profit is made until a sale has been effected. Know on what articles you make a satisfactory profit and on what articles you do not. Eliminate as far as practicable the unprofitable. Ccocgitrate on the profitable. If you must carry lines on which die margin of profit is narrow, know in what ratio die sake stand to those on which the margin Is satisfactory. If you don't, you are skating on thin fee. See that every article bears Ha proper share of overhead expense. Ifyou would be successful in business you must face the facts of businem. Don't practice the folly of the ostrich. When an enemy U approaching, the ostrich buries its head in the sand and counts itself safe. The following list shows Hems of upnisr to be considered: Salaries of Principals Depreciation on Merchandise Salaries of Buying Department Depredation on Equipment Salaries of Salesmen Allowances Salaries of Office Staff Uncollectable Damage Losses Wages of Warehousing Dept. Cash Discounts Wages of Shipping Dept. Donations Wages of Delivery Men Collections Wages of Store Clerks I irensrs Expenses of Salesmen Delivery Advertising all kinds Postage Gifts to Customers Fuel Rot Light Interest on Capital Beat Interest on Borrowed Money Power | Insurance Water ( Stationery and Office Supplies Freight Warehouse Supplies Bad Debts Shipping Dept. Supplies V -.' Saxes 8tore Supplies Legal Repairs and Rmewala, General Miscellaneous (Not Included in Telegraph foregoing) Telephone MAKE A PROFIT FIGURING A PROFIT Dost fool yourself into thinking that If an article cost you $20.00, freight and your coat of doing twinc m is 15%, that if you add 40% to the cost of mr artide you art making 25% profit, because you are only making 13.6%. Here's bow it works out: Artide cost delivered................................................$20.00 Add 40%................................................................... 8.00 8ale Price....................................................................... .$28.00 Leas cost of doing business, 15%____ ______ $ 4.20 Leas original cost................................................20.00 ---------- 24JO Profit on sale-------- -------------------- ------------------- $ 340 or 134% If an artide costs you $1.00 delivered, and your cost of doing borinas is 15%, your full cost is $1.18. If you desire a net profit of Price at 5% 10% 15% 20% 25% 80% 35% 40% 1.24 1.31 1,39 1.48 1.57 1.69 1.82 1.97 5% added toboat Is 4Jf% on sale 10% * * * * `0% 15% .-*>- 13% * 20% /'* * 16K% * 25% 20% - 30% * i.'V* - ` 33H%* * :* 35% * 25% * 26% *' ` 40% * 2$H% * * 45% * 31% * " 50% * * 3SX% * * - OUT OP WHICH MUST COMB YOUR COST OP DOING BUSINESS. MAKE A PROFIT 0007-SWP-0000X2203