“If companies have sales overshoots or undershoots, a very high incremental margin relative to a lower stated margin can cause a big profit beat or a big profit loss.”
♫
Said on In Good Company with Nicolai Tangen
“Sale one has to be a profitable sale… if I'm selling a good for $2,000, let's say, I've got to have no more than a 30%, 35% cost of goods.”
True Wealth: money & business podcast · Billion-dollar founder: 5 rules I use to build businesses that actually scale
Play from 11:58
11:58
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What was described
Require that the first sale of any new product be profitable on its own, covering cost of goods and SG&A, with any additional sales being incremental profit
30% cost of goods max; product price example $2,000
Said nearby on the same subject
“I bought a profitable free cash flow generating business…in a very narrow vertical…make your first sale profitable.”
TW
Tristan Walker
Equity ·
“We actually pushed it further… got the level of pre-sale requirement… down to 20 percent of the debt cover… that was new ground”
♫
Said on The Deal with Adam Di Marco
“I'm donating 100% of any of the profit to charity, which won't surprise you from this conversation or from reading the book.”
AK
Adam Katz
Moneywise ·
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