The 30-second formula
Profit = realistic sale price - shipping/packaging - sourcing cost - safety discount
Buy only with deal approval rules
- Set a minimum margin per category.
- Define max sell-through duration by category.
- Reject all deals below threshold consistently.
Why a safety discount is mandatory
- Negotiation discounts happen more often than expected.
- Small defects often appear during detailed checks.
- Without a buffer, thin margin quickly turns into loss.