Regarding my last email, 3 Percent Markup:
subtle
(ˈsʌtəl)
adj
1. not immediately obvious or comprehensible
2. difficult to detect or analyse, often through being delicate or highly refined: a subtle scent.
3. showing or making or capable of showing or making fine distinctions of meaning
4. marked by or requiring mental acuteness or ingenuity; discriminating
5. delicate or faint: a subtle shade.
6. cunning or wily: a subtle rogue.
7. operating or executed in secret: a subtle intrigue.
Two of the several notes I received:
“Hi Ron,
Interestingly a purchase at $2 and resale at $5 is somewhat more than 3%, I make it 150%, so Mr average most certainly be making a fortune. Just thought you might be interested!
Alex”
“Mark,
Your math is all wrong on your latest email. If you are selling an item that costs $2, and selling it for $5, your profit margin is 60% and I bet any business model that could maintain a 60% profit margin would be a success.”
The trouble with subtle humor is that it may be lost on some folks. I know full well the markup is 150% and the gross margin is 60%. I used to own a small commercial finance company and I was the top income producer for the largest Factoring company in the world generating over $73,000,000 in one year. Oh, I was also the president of a Public company. Although I’m not an accountant, I have examined literally hundreds of balance sheets, income statements and cash flow statements.
Thanks to those who wrote me to correct my “Mistake”. I accept your notes in the spirit in which they were sent and I appreciate your taking the time to write.
Sincerely,
Ron
