Turnover is the amount of money from sales during a certain period. In accounting, turnover is also often referred to as revenue which is calculated by adding up all business operational processes including discounts and product returns. Turnover is also often used as a benchmark for business size, including small, medium or large groups. Meanwhile, profit is the gain or benefit from a business. So profit is calculated from sales minus cost price and expenses as well as taxes. So turnover and profit are very different, but as a businessman you prioritize turnover or profit.
Turnover vs Profit: Which is More Important for Your Business?
- Thread starter Suba
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As for me, I consider profits more. It's okay to have a small turnover, if the profits are large enough and at least able to support my life. I once sold products at cheap prices to achieve high turnover, but the result was that I just got tired. The profits are not commensurate with the sacrifices I make. 
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- #3
It's okay, if you consider large profits, it means you can determine a higher profit percentage for each product you will sell, and you allow for slow inventory turnover and of course you sell goods/products that do not have an expiration date.As for me, I consider profits more. It's okay to have a small turnover, if the profits are large enough and at least able to support my life. I once sold products at cheap prices to achieve high turnover, but the result was that I just got tired. The profits are not commensurate with the sacrifices I make.
For some products, it is better to pursue a decent profit rather than simply pursuing turnover, usually for reasons that require quite a long time to prepare the product or because of limited labor. Like some kind of furniture product, which cannot be finished in a day.
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- #5
Furniture products are an example of a product that does not have an expiration date, so this product prioritizes profit for each unit sold rather than high turnover. Carpentry or labor costs will be grouped into production costs to form production costs, then operational expenses and marketing expenses will be added, plus the desired profit.
You should focus more on your products and allocate good budget for marketing if both things are good in longer term you will always find yourself having profitable ventures from your avenues .
Yes, you are right, and the turnover of goods in the form of furniture and sales is not as fast as the turnover of goods in the form of food. So, I think whether pursuing a decent profit or turnover is back to the principles of each seller, it can be different between one seller and another.
I am also the same as you. I once pursued high turnover in a short time but the result was little profit, in the end I was exhausted and my health dropped. Better for me are stable sales and decent profits.
Turnover with less or no profit will render a business pointless according to me. That shows your expenditure equals turnover or very high leaving little room for profit
I do not think any businessman will aim for high turnover with less or no profit. \
I do not think any businessman will aim for high turnover with less or no profit. \
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- #12
In business, turnover or profit must be adjusted to the type of business, especially if your business is like food or drink which has an expiry date, it is better to choose high turnover, even though the profit is small for each unit sold, but multiplied by thousands of sales the results will be very big, but if you Selling furniture that does not have an expiry date is more suitable for choosing profit.
For me I cannot separate the two.. They are twins. My profit is dependent on the amount of sales I make. Whereas profit may be high but turnover is low it means the commodity could be priced high and you might be stocking up on inventory.
May be you have a point when it comes to perishable items but in general I doubt if one would go for turnover and not be concerned about earning profits. I am not quite clear on this
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- #15
OK, I'll explain in other words or better with examples. A baker can sell 1000 loaves of bread every day, and for each loaf of bread he will make a profit of $0.2. so for 1000 loaves of bread he will earn $200 per day. Turnover is high, because the goods are sold out, whereas if we compare it with a cupboard maker who only produces 1 cupboard per day and sells it with a profit of $100, turnover is low because only 1 unit of cupboard is sold per day.
