Cost Price, Selling Price, Margins
Reselling vs Manufacturing
The cost price is how much it costs to produce a product, including the raw materials, production cost, building costs, and labor. The selling price is how much you sell to consumers for, not including the shipping and taxes. The margin is the difference between these prices.
There are two ways to sell: buy, store, sell or buy, make, sell. The first way is also known as reselling or trading because it involves buying a product and selling it for a higher price. The second method is known as producing or manufacturing because it involves making the products. Though this method has more initial costs, it can have a lower cost price, and therefore have better margins.