Posted by: A. C. Cockerill | December 28, 2012

Factoid #39: Profit v.s. Profit Margin – Part 1

Factoid #39: Profit v.s. Profit Margin – Part 1

Manufacturing is about individuals taking materials from lower-ordered, less valuable states to higher-ordered, more valuable states. (Gemstones are higher-ordered crystals–more valuable.)

An individual creates additional value in a product or service by using his or her energy, intent, skills, abilities, and soul.

Profit (earnings before taxes) = sales (revenue) – costs (expenses)

= the value added (wealth) in creating a product or service

= created wealth (as opposed to redistributed wealth such as taxes)

= the essence of an individual invested in a product or service

For a writer, profit represents not only the energy, intent, writing skills, and storytelling abilities he or she uses, but also the fire of his or her soul invested in the manuscript.

Profit is quite precious.

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