Price, cost, and what is left
- What it is
- What one unit sells for, what one unit costs you, and how many go out in a month.
- Why it matters
- Selling a thing is the only shape here where income is not tied to your hours. But it is also the only one that can lose money at scale. Selling more of something with no margin makes the hole deeper, faster.
- The method
- Price minus cost is your margin on one unit. Margin times units, minus your fixed monthly costs, is what the line actually earns. Count delivery, packaging and fees in the cost — they are real.
- Example
- Adeel sells at PKR 950 and each unit costs him PKR 570. Margin PKR 380. Three hundred a month is PKR 114,000, less PKR 45,000 of fixed costs, leaving PKR 69,000.
Now you
Price per unit, cost per unit, units a month, and your fixed monthly costs.