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QuestionLooking for contacts Pin
Rozis29-Jun-09 13:44
memberRozis29-Jun-09 13:44 
QuestionBusiness Question [modified] Pin
wes2118-May-09 8:28
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Snowman5818-May-09 8:43
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wes2118-May-09 8:59
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Snowman5818-May-09 9:23
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Ray Cassick18-May-09 9:30
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wes2118-May-09 9:57
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Snowman5818-May-09 14:05
memberSnowman5818-May-09 14:05 
21concepts.com wrote:
if there's a 5% profit margin and the default rate is 7%, then over time, I'll lose 2% rather than make 5%


I am afraid I don't understand your math. As I see it you make 5% regardless. You may give up a potential 2%, but you don't lose anything.

The only time you might say you were losing money would be if you had an alternative investment that would make more. For example if you could put the money in bonds at 9%, you would be losing 4% by investing it for a 5% return. If the bonds were tax free, you might even be losing 5 or 6% after taxes. But absent an alternative investment, the return is what it is.

If you are trying to determine the customary margin for an industry, I suggest you do some research using the industry SIC code. There are statistics published for each industry. But use caution in applying them. The numbers may have been generated using a statistically insignificant number of samples or perhaps generated for companies that fall in that SIC, but have no real relation to your situation. And they are by definition several years out of date.

The questions you need to ask yourself are; Am I satisfied with this return relative to the risk involved and could I get a better return using the money in a different way?

Melting Away

www.deals-house.com
www.innovative--concepts.com

QuestionSelling my software..... please help! Pin
Rajdeep.NET is BACK3-May-09 23:05
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mindserve7-May-09 4:52
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muddan7-May-09 20:55
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wes2117-May-09 11:04
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Steve Maier3-Jul-09 7:04
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Mari Jenkins24-Feb-10 8:56
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Mario M.20-Mar-19 10:37
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QuestionPricing products Pin
Leslie Sanford24-Apr-09 20:35
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mindserve7-May-09 4:51
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kokoblinks27-Jun-09 3:51
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blunderbolt23-Jul-09 11:15
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Questionhiiiiii wants to launch my own website and earn money Pin
Alok Sharma ji6-Apr-09 3:07
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JokeRe: hiiiiii wants to launch my own website and earn money PinPopular
Smithers-Jones15-Apr-09 23:43
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AnswerRe: hiiiiii wants to launch my own website and earn money Pin
Ashfield16-Apr-09 1:29
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Pete O'Hanlon16-Apr-09 2:32
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