|
Focus on
Profit
SOFT GOODS - cannot be sold twice
or the next day and are usually sold on 100% Exchange at normal or
discounted prices such as: Hotel Rooms, Restaurant meals,
Advertising, Professional Service, Rental / Hire Services,
Excess / Surplus / Redundant Products, Travel Services,
| Without
Exchange Sales |
Cash
sales
Total Sales
Cost of Goods
Gross Profit |
500,000
500,000
100,000
400,000 |
 |
| Expenses |
Fixed
(wages,taxes,rent....)
Variable
(advertising,legal....)
Total Expenses |
275,000
100,000
375,000 |
 |
| Net
Profit |
25,000 |
|
 |
| With
10% Exchange Sales |
|
Cash sales
Exchange Sales
Total Sales
Cost of Goods
Gross Profit
|
500,000
50,000
550,000
110,000
440,000 |
 |
| Expenses |
Fixed
Variable - Cash
Variable - Trade
TBEx Fees 10%
Total Expenses |
275,000
50,000
50,000
5,000
380,000 |
 |
| Net
Profit |
60,000 |
|
The Table shows the increase in profit that a company can
achieve by introducing 10% growth through the use of Exchange
sales to offset cash expenditures - with a 20% Cost Of Goods
Sold (cogs).Hard Goods
|