business modeling S = T - G - TR
What is business modeling S = T - G - TR?
Advanced governance structure advisor for non-profits.
- Added on November 19 2023
- https://chat.openai.com/g/g-kqOD55Hu2-business-modeling-s-t-g-tr
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FAQ from business modeling S = T - G - TR?
The S = T - G - TR business model is a formula used to calculate a company's net profit. 'S' stands for net profit, 'T' represents total revenue, 'G' is the cost of goods sold, and 'TR' is the total revenue foregone due to unfulfilled orders or returns. By subtracting the cost of goods sold and total revenue foregone from total revenue, a company can determine its net profit.
The S = T - G - TR business model can be applied in various business scenarios to calculate net profit accurately. For example, e-commerce businesses can use this model to track their profits and understand areas where they need to optimize their processes, such as reducing returns. Similarly, brick-and-mortar stores can use this formula to calculate their net profit by accounting for the cost of goods sold and revenue loss due to unfulfilled orders or returns.