I’m trying to get my mind around my finances and want to put this in terms I, someone who isn’t bad at math but isn’t super, can understand. Something like the title says - for every dollar I spend in X service area of my business, I get $Y back."

So for an area of my business, let’s say that I sold $100,000. With COGS and salary, it cost me $40,000. My gross is $60k, or 60%.

So back to my question, in this case is it “for every $1 I spend in this area, I get $1.40 back”? I just can’t get me head around this, so thanks for the help.

** and yes, I know there are more things to consider like other overhead and operating costs, but I’m trying to keep the example simple.

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  • Kromo30@alien.topBEnglish
    1·
    10 months ago

    Eh, you get into thing like Saas, where your expense is ad spend and lifetime income of a subscription is far greater.

    But apply this 100% number to physical goods/retail… you’re going to have a bad time.

    • rch5050@alien.topBEnglish
      1·
      10 months ago

      yeah i mean i could be legit. I mean you can make bank with an atm business without ‘spending’ anything but gas. whether or not you consider that ripping people off is debatable… Ho hum, ill just sit here quietly making my 6 cents on the dollar whilst getting told I charge too much…