Introduction
Profit is the money you earn after a successful sale. On AffanHub, profit does not mean every naira you see in your business wallet. Profit is only the difference between your selling price and your internal cost.
If you understand this early, you will manage your business better and avoid confusing wallet balance with real earnings.
How it works
Every sale has two main amounts:
- Selling price: the amount your customer pays.
- Internal cost: the amount your business uses to fulfil that service.
The difference between those two amounts is your profit.
Example: if a customer buys data for NGN 600 and the internal cost is NGN 500, your profit is NGN 100.
That NGN 100 is the part you can think of as earned margin. It is different from the business wallet that your store uses to keep processing sales.
Step-by-step guide
Set your prices carefully
Before selling, make sure your prices are sensible. If your price is too low, your profit may be too small. If it is too high, customers may not buy from you.
Understand what happens during a sale
When a customer buys, the customer pays your selling price. Your business wallet covers the internal cost of delivery, and your margin is recorded as profit.
Check profit separately from wallet balance
If your dashboard shows a healthy wallet balance, that does not always mean all of it is profit. Some of it may still be money needed to keep the business running.
Use small examples to check your understanding
Try simple examples yourself. If you sell airtime for NGN 500 and your internal cost is NGN 495, your profit is only NGN 5. This helps you decide whether to adjust.
Track your best-selling services
Some services move faster than others. If a product sells well and still gives you good margin, that is where you should focus more of your promotion.
Tips to succeed
- Do not set price based on guesswork. Compare your internal cost with the market price around you.
- Keep an eye on low-margin products. High sales with very tiny margin can still stress your wallet.
- Remember that profit is not the same as turnover. Big sales volume does not always mean big earnings.
- Review your prices from time to time so your business stays competitive.
Need help?
If profit is still confusing, ask before changing too many prices. A small pricing mistake can affect many sales.