What is Profit?

"Profit" is the most abused word in the vocabulary of the dmerican business m.an.

The principal ,cause of the abuse of this particular and very important word is that the average business man fails to distinguish between the tern.rs "gross" profi,ts and "net" profits. E,very man, of course, knows the difference in a general way between the two terms, but fails to appreciate the tremendous difference that really exists between the two. He fails to appreciate the fact that ,,gross,, profits is a factor in our daily trade that really has no business there. It has no standing in court. In fact, there "ain't no sech animal." When you hear a business man talking about his "gross" profits, look out for him.

The reason so many dealers are disappointed when they come to actuallv counting up their profits after the business has been handled, is because his basic principles of cost accounting and price making are not correct. He has been fooling with old man "Gross" profits, when as a matter of fact he should have had nothing to do with the deceitful cuss.

There are just four fact,ors in the financial end of a sale: The invoice cost, the cost'of delivery (freight), the cost of doing business and the NET profit.

An article which costs 50 cents delivered, and sells for a dollar, does NOT pay 100 percent profit, as some have tried to tell our dealer friends. An article which costs 80 cents delivered, and sells for a dollar cannot be said to pay 25 per cent. Just remember that it costs you fr per cent to do business-or somewhere in that immediate vicinity -and be sure you get your 2O per cent in there EVERY TIME.

If you want to know what profit you can make on an item, add together the original cost and the cost of delivery; then figure 20 per cent of this total and add it to said total, and you will have the actual cost of your business of this sale. Check t,his against your selling price and, you will know what you have made and be able to check your net profit. Look out for old man "Gross" profits, Mr. Dealer. He will deceive and betrav vou.

Using Our Stuff

The co-operation article, "God Helps T,hose Who Help Each Othern" from one of the recent issues, was reprinted in a ful,l page of "The Knot-Hole," a bulletin issued to its members by The Mountain States Lumber Dealers Association, Denver, Colo.

If you clDnot wait lor him-nail or wirc your ordcr or inquiricr direct to

Tounloaszn can sapply you sith this door in all standard si7es, immediately on receipt of your order