So my operating profit is really my profit because I don't have to pay taxes on it.

If you and I one sell individually what little we produce,

And so I had a total expense or total cost of goods sold of 1 million.

He made a profit of ten thousand dollars on the sale.

So what's the profit going to be? So let me write this down.

So, you're selling costs were embedded here, this was the commission or direct sales costs or whatever you were paying your direct sales people and you made 37 selling directly.

Before I think about how much does it cost for me, all of the overhead expenses.

Sell, sell, sell.

So already we have some new nuance on profit.

Over here, this axis right here is going to be the selling price,

Or if we just wanted to round to the nearest penny, since we're talking about selling something, this optimal profit, this optimal profit, will happen at a selling price of 23 and 30, 23 and 33 cents.

If it turns out you're right, we could sell dealerships now, which sounds crazy.

And when they produce their crops, they sell the surplus on marketplaces.

Fair enough.

And it has been a powerful marketplace differentiator, increasing sales and profits.

This is jack... one of our best salesmen.

We get 30 s squared plus 1400 s minus 16000.

But this is, of course, an optimistic scenario. Let's think of other scenarios.

And their value proposition, as even they realized later, was pretty unclear.

And this number tells you, how much money did you make, or how much profit did you make just from selling these widgets?

Sold

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What do you sell?

A company is a business organization with sales, a product, or service in exchange for revenue and profit.

And your cost of producing that incremental cupcake is a lot lower, so you're just like, well, as long as I charge something more than that,

We call it a select opportunity .

And do their profit is 20 for carrying, stocking, and reselling our product.

So let's say I just want to know what has to happen for my operating profit to be zero.

I made a good profit by selling my car.

Minus 50,000.

He's like, you know what, we have to match his prices.

My dad sells tractors.

If the cost to produce the item is 20, so the cost to produce an item is 20, what is the selling price that optimizes the yearly, the yearly, profit?

This is the PC guy over here.

I'm a salesperson.

I had to break a machine open.

Our liquor license!

What's so awesome about a queensize futon sale?

This guy is a Bible salesman.

So if we substitute 30 s plus 800 for q, we get 30 s plus 800 times s minus 20, times, and this is in a different shade of yellow, times s minus 20.

In a physical channel, a direct sales force are sales people that work for you directly and typically sell directly to the end user.

The second area of discrimination is advertising and marketing.

I made a good profit by selling my car.

So I'll do a line here. I'll subtract that from that.

And the reason why they're the sell side is because they're always selling you stuff.