First, determine your total investment. This includes the cost of Viagra, shipping, storage, and any other associated expenses. Let’s say your total investment is $10,000.
Next, estimate your gross profit. This is the revenue you expect to generate from selling your Viagra wholesale. For example, if you expect to sell your stock at a 20% markup and project sales of $15,000, your gross profit is $5,000 ($15,000 – $10,000).
Accounting for Operational Costs
Subtract operational costs like marketing, administrative fees, and potential losses from your gross profit. Suppose your operational costs are $1,500. Your net profit is now $3,500 ($5,000 – $1,500).
Calculating ROI
Finally, calculate your ROI by dividing your net profit by your initial investment and multiplying by 100 to express it as a percentage. In this scenario, your ROI is 35% ($3,500 / $10,000 * 100). This indicates a strong return on your investment.
Profit Margin Analysis
Analyze your profit margin–the percentage of revenue that represents profit. A higher profit margin suggests better efficiency. A low profit margin may indicate pricing issues or high operating costs that require review.
