4 ms·
So... profit?
by jmcdiesel 10y ago
So... profit?
- sokoloff 10y agoValue is closer to revenue than profit, IMO. Profit is an internal accounting issue. If you give me two $10 bills in exchange for a single $20 bill, it's clear that the value of what you gave me was $20, but unless you are counterfeiting or laundering money, I presume your profit was $0. Conversely, if you save the seeds from tomatoes, grow them in your yard, and sell me $20 of tomatoes, same $20 of value, and presumably close to $20 in profit.
- wpietri 10y agoValue is definitely closer to revenue, but it's important to note that it can diverge. For example, channel-stuffing [1] creates revenue but does not deliver value. Fraud too can have high revenue but deliver no value. [1] https://en.wikipedia.org/wiki/Channel_stuffing https://en.wikipedia.org/wiki/Channel_stuffing
- naasking 10y agoGoods and services that don't turn a profit can still have great value. For instance, can you monetize the air you breath? Not really, but I imagine it has great value to you.
- sokoloff 10y agoDive boat operators and dive shops monetize air all the time.
- naasking 10y agoExcept that's clearly not the good or service I'm referring to is it?
- jmcdiesel 10y agoBreath is monetized quite often. How much do you think an assisted breathing machine costs? Or a CPAP mask, or a scuba tank? Everything is monetized, and profit drives everything, we are a capitalist society. A business will not operate on charity very long...