Realistic profit

Insider

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What do you think is a realistic yet "ethical" profit to make from one customer in a year?

How much does it depend on your type of business and the size of the business?

(Remember to indicate gross or nett profit)

E.g. You make and install fireplaces - you make R2000 profit from 200 customers every year to make a decent living.

On the other hand - ABSA makes about R8.5 billion after tax per year on a base of 8 million+ customers. That is approximately R1000 per customer per year.

So is the fireplace seller doubly greedy?

Also keep in mind that ABSA probably makes a lot more from corporate deals and huge government/private sector financing than from the man in the street.

I don't know the distribution of their income but let's thumbsuck R500 per "regular" customer/year - is the fireplace seller 4 times greedier than ABSA?
 
Maybe you should move this to off-topic for more responses?

My basic answer would be that it very much depends on the choice of the consumer and then the real price vs actual price being charged.

If I have no choice then they should be selling at cost.

If they can sell a product for R1000 and they are selling it for R2000 then it's gross profit. Normally 50%-100% markup of manufacturing costs is the max limit.
 
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