High turnover and supported by adequate profits, it will make our business grow fast and we will become rich people. What does high turnover mean if the profit is small, all of it will be used up to pay for business operational costs.
The secret in using turnover to get wealthy.
- Thread starter Niyi Briggs
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- #22
Let me explain how this works to you. I sell rice at $5 and it takes me one week to sell off and my profit is $2. I now decide to sell it at $4.5 or even $4 and it takes me 3 days to sell off and my profit is let's say 1$. If I decide to stick to getting the $1 profit, I would make more profit at the end of that month than of I kept on selling at $2. That's because I would sell more quantities.
Oh yeah, maybe that makes sense, it's just that not everyone is tempted by a lower price. There are people who still dare to pay high prices but with quality and service that is more satisfying to them. It all depends on our target market anyway. So, it doesn't guarantee a high turnover, so the profit will be high, it all depends on the profit margin that we set.
Probably, I think this is one of the major secrets a lot of people that want to venture into many businesses do not understand. Having quick turnover will make you more profit in the long run if you are consistent.
Turnover is far superior to the rate of profits and can be the major difference between a business that would be successful or not.
