Bifalgorithm post
The average price of petrol in the US is 92 cents per liter. If you buy 100,000 liters, it would cost about $92,000. However, the same liter of petrol in Saudi Arabia averages around 62 cents. If you import 100,000 liters from there, the fuel would cost $62,000. Add approximately $6,000 for shipping, bringing your total cost to around $68,000. If you then sell that petrol in the US at 92 cents per liter, you generate $92,000 in revenue, leaving a profit of about $24,000. But there's an even more profitable market. In the UK, petrol costs about $1.67 per liter. If you export the same shipment there and sell it at that price, you generate $167,000 in revenue. After deducting roughly $7,000 in VAT and $3,000 in freight costs, your profit would be around $89,000.
The average price of petrol in the US is 92 cents per liter. If you buy 100,000 liters, it would cost about $92,000. However, the same liter of petrol in Saudi…
Ideas in this flowchart
- Petrol Pricing and Profit Analysis
- US Petrol Pricing
- Average price: 92 cents/liter
- Cost for 100,000 liters: $92,000
- Saudi Arabia Petrol Pricing
- Average price: 62 cents/liter
- Cost for 100,000 liters: $62,000
- Shipping cost: $6,000
- Total cost: $68,000
- US Market Revenue
- Revenue at 92 cents/liter: $92,000
- Profit: $24,000
- UK Market Opportunity
- UK price: $1.67/liter
- Revenue: $167,000
- VAT: $7,000
- Freight cost: $3,000
- Profit: $89,000