
S E9: Supply - Getting the Best Out of What You Sell
Think Like An Economist
00:00
What's the Profit Margin?
A typical cup of coffee costs about five dollars. Samir says if the price is too low, he won't even be covering his marginal costs or making any profits and therefore it's not worth running the business at all. "If we can bring that typical sale up from eight dollars to nine dollars, to ten dollars, then we can start to put more money in like our labor cost," said semir.
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