Definition of
Amount
The concept of amount It has two great uses. On the one hand, it is about the addition or the worth of a price, a balance, a debt, etc. On the other hand, the term is a conjugation of the verb matter (value, affect, introduce foreign products or habits).
The was worththe amount or the cost of a good, therefore, they are established by fixing their amount. If a clothing store offers a pair of pants 300 pesosit can be said that said price ($300) is its amount. The person who wants to buy these pants, therefore, he will have to pay that sum.
When making a purchase, it is always important to know the amount. That will be the amount of money that must be delivered to the seller to get the good offered. Being aware of the amounts also serves to compare the alternatives offered by different businesses.
- The definition of the amount
- The establishment of the price
- Other uses of the term amount
- Related Topics Tree
The definition of the amount
Today it is becoming easier to start a small business, even for one person, in large part thanks to the conveniences of the Internet. Create one store At home it is perfectly possible and does not entail a large investment of money: everything starts with an idea, and then it is necessary to design an attractive portal, include a payment gateway and choose a home delivery service that is suitable for our needs. However, one of the fundamental points is the determination of the amount of each product, since if this step fails, the profitability of the business is in danger.
An amount that is too high can scare away potential buyers, since there will always be a competitor with better offers; one that is too low can result in a higher flow of transactions for a while, but in a great loss of money in the long term. To choose the right amount, it is necessary to take into account all the costs added to the product, among which are the following: packaging, margins for stores, shipping costs, taxes and charges. benefits own.
It can help you: Operating expenses
The establishment of the price
In other words, it is not about asking the question “how much could a product like this cost?” but “How much should I ask for this product to receive Profits?/». Although the list of aspects to calculate the amount may seem overwhelming at first, if we contemplate them step by step throughout the manufacture and marketing of the product, everything is easier.
First of all are the materials necessary to manufacture the product. Regardless of the strategy and criteria we use to choose them, we must always leave a record of the expenses incurred at this stage, so that they have an impact on the decision on the amount. The time we invest in its manufacture or planning must also be a point to take into account.
One of the most common mistakes when determining the amount of a handmade product is to overlook certain apparently secondary expenses, such as the cost of consumption of electric light.
See also: Marketing
Other uses of the term amount
The idea of amount as a total of money can be used in other contexts. Suppose that a company apply for a credit 100,000 with an interest rate of 5 percent. The amount that you will have to return once the agreed term is met will be $105,000 (the original $100,000 further 5000 dollars as interest, since 5000 is he 5 percent of 100,000).
Amount is also linked to the action to import. For example: “I don’t think you care, but today I met Luisa and we talked for a long time”, “Due to the devaluation of our currency, each product that I import from now on will cost me more”, “There is nothing that matters more to me than the well-being of my children”.
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