What were the two big “takeaways” from Managing Markup assessment?
I think that the biggest “takeaway” for me was understanding how a business would work, from the wholesale price all the way to profit, allowing me to gain knowledge on pricing plans and strategies. The second “takeaway” would be that I know more of how percentages work in real life, as it is not as simple as sales in stores or nutrition facts on a packet of food.
How have you become a more educated investor? Be specific about how you would invest your money.
I have understood the relationship between markup, demand, revenue, cost and profit, and so I can define a good marketing strategy for my investments. I would invest my money on things that generate the highest profit, taking into consideration the price, demand, and cost. I also would not only look at the revenue, as the cost and profit can make a big difference.
Describe, with examples, how you improved some of your math skills.
I don’t think that my math skills improved a lot, as I had already acquired the math skills required for this assessment.
Why doesn’t a 20% discount followed by a 20% markup get you back to where you started?
Because they each are 20% of two different numbers. For example, if my starting price is $100, it will become $80 after the discount. The discount is 20% of $100. After the markup, the price changes from $80 to $96, because it has increased by 20% of $80. This is because it has increased by 20% of $80.
How do companies make a profit?
The costs are subtracted from the revenue. Companies maximize revenue and minimize costs, finding the optimal strategy that provides the most profit.
Is it possible for everyone to win in the marketplace?
No. You are in a competition with other businesses, aiming for the most investments and highest profit. Therefore, there will always be winners and losers. Those with the best marketing strategies, costs control and products that create the highest customer satisfaction will generate the highest profit.