Profit

[redlig]

This is not a trick question but as someone who has never been in business I am in discussion with a mate and would like to know the following, If I sell something that has cost me absolutely NOTHING how much PROFIT ( as a percentage ) have I made ?

 

[julianf]

100%

But then you might get into the mathematics of "divide by zero" and go down a rabbit warren.

However, in laymans terms, 100%, assuming you are not accounting for your labor to conduct the transaction.

 

[8ob]

The profit as a percentage would depend on the true cost of what it cost to have the item in your possession, market it and deal with whoever buys it.

Bob

 

[Stupoty]

This is not a trick question but as someone who has never been in business I am in discussion with a mate and would like to know the following, If I sell something that has cost me absolutely NOTHING how much PROFIT ( as a percentage ) have I made ?

If you were employed by your own company the time you spent finding it would be part of your wages which have a cost.

If you found it outside work hours you should put it on ebay and sell it for your self personally.



Stu

 

[Mikes]

You don't make a profit and the money that you get cannot be expressed as a percentage.
Definition of profit : financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

 

[Erie Fred]

Around here we have "people" that do garage clean outs.

You pay them to clean out and dispose of your junk.

They take some of the junk to the weekly flea markets and sell
it for profit.

Their math is even better than yours, they get paid for removing the item, and then they sell it.

 

[redlig]

100%

But then you might get into the mathematics of "divide by zero" and go down a rabbit warren.

However, in laymans terms, 100%, assuming you are not accounting for your labor to conduct the transaction.

!00% of what?

 

[Burdekin]

0

 

[skotl]

!00% of what?

Well, of the selling price of course.

That would be gross profit, net profit would be after your time, selling costs (perhaps petrol etc) were deducted.

 

[Blobber]

100% but dont tell HMRC

 

[s410man]

Infinity % profit

 

[hotponyshoes]

Although you say it's not a trick question it sounds a lot like one of those questions that pops up on social media designed to get people arguing because there is not a correct answer.
Mainly because it's not a correct question.
You can't get an answer as a percentage of nothing.
If you want a 'correct' answer, or at least one people can agree on, rephrase the question

 

[redlig]

This is exactly the discussion I'm having with a friend at the moment .He insists that the answer is 100% profit,but I fail to see the 100% of what . I'm afraid I see it as a markup from zero and not a profit in % terms. The funny thing is that your gift of horseshoes is at the heart of this . I made and gave away as a present a pot holder to be told " you should make them and sell them " To which I replied that it sounded like work and I gave that up years ago.

 

[julianf]

Profit is sales price minus cost.

If you have no cost, then 0% is cost, and the rest is profit.

What's 100 minus 0?

 

[MattF]

Profit is simply what's left over after all costs are accounted for.

 

[Memmeddu]

There's never 100% Profit in my opinion TBH.
There's always a cost either financial, time,transportation or commissions .
Let's say we make an example really quick .
I've got an object for free .
Where I was surely not home ,so the fuel and the time to purchase the item it's already a cost.
I found something ,take it home , clean-up and put on selling.
How much I've spent
Transportation
Clean up even if with a wet rag
Put on eBay , we have to pay a commission
The time spent in those operations.
Storage time as a cost even if laying on your kitchen floor ,it has a cost cause it's taking you space for something else.
Anyways you'll never get 100% profit
NEVER

 

[premmington]

This is not a trick question but as someone who has never been in business I am in discussion with a mate and would like to know the following, If I sell something that has cost me absolutely NOTHING how much PROFIT ( as a percentage ) have I made ?

100% minus any costs - costs to sell - and any warranty claims you need to uphold.

 

[Burdekin]

It’s a math equation and when you have 0 in the equation the answer is 0. Percentage profit = 0 / value x100 = 0.

You can have more than 100% profit. If your profit is more than double what you paid for the item then it’s greater than 100%.

 

[8ob]

It’s a math equation and when you have 0 in the equation the answer is 0. Percentage profit = 0 / value x100 = 0.

True if there is no cost but that is never the case.

Bob

 

[Burdekin]

True if there is no cost but that is never the case.

Bob

Not sure how you plug that into the equation.