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How to calculate true profit on used phones

Published Last updated Written and reviewed by the Resale Intelligence team

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  1. Which costs do you need to deduct before counting profit?
  2. Example: two units with the same profit that aren't equal
  3. How do margin, ROI and profit per day differ?

True profit = revenue actually received − every cost of that device. Look at profit per day as well, because cash tied up for a long time has a cost.

Which costs do you need to deduct before counting profit?

Besides the purchase price, deduct repairs, battery swaps, parts and screen film, shipping to and from the repair shop, card and marketplace fees, discounts and promotions, and staff commission. These costs are easy to forget and make the profit in your head look higher than it is.

What remains after every cost is that device's True profit.

Example: two units with the same profit that aren't equal

Unit AUnit B
Sold for20,00020,000
Total cost16,20016,200
True profit3,8003,800
Sold in10 days60 days
Profit per day38063

Device A brings your cash back to buy new stock six times faster, while device B leaves it as Capital tied up for longer.

How do margin, ROI and profit per day differ?

Margin is true profit divided by revenue, ROI is true profit divided by total cost, and profit per day is true profit divided by the days you held the device. The last one tells you how fast your cash turns over.

  • Margin = True profit ÷ revenue
  • ROI = True profit ÷ total cost
  • Profit per day = True profit ÷ days held
True profit report per unit: total cost, revenue, net profit, margin, ROI and profit per day
The true-profit-per-device report

The app records every cost in a per-unit ledger and calculates these automatically. Learn more in Inventory Intelligence

Frequently asked questions

How do we calculate profit on a used phone correctly?

Add up every cost of the unit (purchase price, repairs, battery, parts, shipping, fees) and subtract it from the revenue actually received after discounts.

Why look at profit per day?

A unit that makes ฿2,000 profit and sells in 5 days turns your cash over better than one that makes ฿3,000 but takes 60 days.

See true profit from the first unit you buy

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