Ways to Determine Profit
How is profit calculated? The formula remains the same no matter what the currency: Profit is what remains after paying for products, services, time, knowledge, and expertise. It can be called the currency flow after expenses and time. There are several types of profit. Let's look at a few to understand the motivation behind selling.
Businesses need profit in the form of currency—money—to stay alive. No matter how talented or skilled you are, you must make enough money to pay all your expenses, including paying yourself. You may have excellent and well-made products, but you have to make enough money to pay the bills, pay your own salary, and have enough to invest back into the business to succeed. Making good products alone is not enough. Communicating to your customers the reasons they should buy your products and services is an essential part of any sales rep's business arsenal.
The Reward of Helping Others
Nonprofit organizations’ profit may take the “feel good” form of emotional currency that they get from aiding others. But this good feeling can't be their only form of profit. In other words, it still takes money to run the organization and meet their goals. Their main goal as a nonprofit may not be to make a monetary profit, but money makes it possible for them to do the wonderful things they do for their members and others in society.
The Satisfaction of Contributing
Selling an idea to your client or business is profitable in terms of emotional currency. All people in sales know how emotionally rewarding it is not only to see sales goals reached or exceeded (and thus knowing they are contributing to the health of the company), but to see their goods and services being used and helping people.
Quality or Brand
Some people buy because of the perceived quality of the product or service. Their main priority is to get good quality, and money does not play an important part in closing the deal. The currency of brand is very strong, especially among certain demographic groups. For example, a young person may buy only a certain brand of athletic shoe because he believes that when he's wearing these particular shoes, he'll do better in sports. A woman who loves home entertainment toys may do extensive research and realize that she wants the very best. She's willing to spend as much money as it takes to get what she feels is the best.
Knowledge, Validation, and Satisfaction
Going the extra mile and getting an advanced academic degree is profitable and yields further benefits in the form of increased credibility and higher salaries. People who do volunteer work often do it out of a personal passion for a particular association or cause because of their own experiences that have led them to want to help others. For example, people who have watched family members suffer from a particular disease may feel strongly about helping to find a cure or to provide support to other people going through the same thing. Parents who invest in their children's education and emotional stability with their time, love, and respect may consider their profit to be the feelings of peace and joy they get.