Amazon gives non-Prime members free shipping at $35 or more of eligible items. Instead of simply letting users get the product with free shipping, they’ve added a discount that prices it exactly one cent below the $35 limit, while only subsidizing the price with $3.38, which is about half of what they’ll then charge you for shipping.
I mean, non profits exist. Of course it’s not the case for Amazon, but you don’t need to profit in order to exist as a company, and people still get to make money.
Non profit doesn’t mean no profit.
Non profits make enough profit to pay their employees, rent, and any other business needs, or they get money from other sources. They still need and make money to operate.
For a company to succeed, there must be profit, or have an outside source of funding.
You cannot pay rent, employees or other business expenses with revenue and no profit without going into debt.
Non profit means no profit. Salaries, rent, etc are not paid from profit.
That is fundamentally what profit is, revenue less expenses. By definition, profit is money that does not have anywhere to go in a business, and so gets distributed to stake holders of the company.
This is why you’re wrong
Profit is revenue minus cost of goods
NET profit or net income is after expenses unrelated to cost of goods.
If a widget costs you $100 to make and you sell it for $100 that’s $0 profit.
Tack on all the other expenses to run a business and now you’re in debt.
Profit is not NET profit.
“Profit” is a general term referring to the money a company earns after subtracting the cost of goods sold from its revenue, while “net profit” is the final profit remaining after all expenses, including operating costs, taxes, and interest, are deducted from revenue, representing the company’s true bottom line profitability
Edit: Below shows some guidelines, on how they can earn profit.
NON PROFITS can earn profit, they’re just restrictions on it.
Yes, nonprofits in the United States can earn a profit, but they must reinvest it back into the organization. Nonprofits are tax-exempt and are formed to serve the public, so they can’t distribute profits to individuals. How nonprofits make money
Donations and fundraising: Nonprofits raise money through donations and fundraising events
Earned income: Nonprofits generate income through activities related to their mission, such as:
Selling merchandise
Charging fees for services Renting out space Selling food
How nonprofits use their profits
Program growth: Nonprofits use profits to grow their programs, hire staff, and upgrade technology Sustainability: Nonprofits use profits to build reserves for long-term sustainability Fundraising: Nonprofits use profits to attract more support through fundraising efforts
Restrictions on nonprofit profits
>Nonprofits can't distribute profits to individuals
>Nonprofits must reinvest all surplus funds back into the organization
>Nonprofits must ensure that their revenue is directly related to their mission
Heh, “revenue is not profit”.
Non-profits are specifically not allowed to have revenue in excess of expenses. If they take in too much money, the excess has to be put back in for operational expenses in the future, an endowment or something like that.
(In the Netherlands) Non profits are allowed to make profit, they just need to pay tax above a certain amount of net profit. The thing that makes them “non-profit” is that they are prohibited to pay out that profit. Hence there is no incentive for (excessive) profit.
Yes, nonprofits in the United States can earn a profit, but they must reinvest it back into the organization. Nonprofits are tax-exempt and are formed to serve the public, so they can’t distribute profits to individuals. How nonprofits make money
Donations and fundraising: Nonprofits raise money through donations and fundraising events
Earned income: Nonprofits generate income through activities related to their mission, such as:
Selling merchandise
Charging fees for services Renting out space Selling food
How nonprofits use their profits Program growth: Nonprofits use profits to grow their programs, hire staff, and upgrade technology Sustainability: Nonprofits use profits to build reserves for long-term sustainability Fundraising: Nonprofits use profits to attract more support through fundraising efforts
Restrictions on nonprofit profits
Nonprofits can’t distribute profits to individuals Nonprofits must reinvest all surplus funds back into the organization Nonprofits must ensure that their revenue is directly related to their mission
All companies have to earn a profit, not just to pay for the expense of the goods plus all of the overhead, but also to be able to reinvest and grow. There’s a difference between earning a livable wage while the company as a whole remains poor and earning barely enough to live on while the investors pull in massive gains year over year.
A company taking excess revenue and reinvesting it isn’t profit.
There may be phrases with the word profit in them that include that value, but the general accepted definition is profit is the money that gets distributed to the stakeholders after expenses are covered. This is things like dividends for publicly traded companies, or for private companies, it’s just straight up paying out the cash to stakeholders.
