SAR 149 minus SAR 62… is the rest really your profit?

BTMSE · 2026-10-06T06:12:08.965Z

Many store owners calculate profit like this: Selling price − product cost = profit. But the picture is usually bigger than that. A simple example: Selling price: SAR 149 Materials or product cost: SAR 62 Apparent difference: SAR 87 Is the whole SAR 87 profit? Usually not. Before you count the difference as profit, review, depending on your business, items such as: Payment gateway and platform fees Advertising and marketing costs Packaging or shipping, if any Returns and waste Fixed costs Any commissions or expenses linked to the sale Then you’ll have a more realistic view of your contribution margin and net profit, how many units you need to sell to cover your costs, and whether your current price fits your goal. Sometimes a product sells well, but once you add up the costs, the real profit turns out to be much lower than expected. My question for store owners: What cost did you discover too late that was eating into your product’s profit?