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Net Profit VS Gross Profit

Name: Net Profit VS Gross Profit
Uploaded: 2026-02-14T00:15:00+00:00
Duration: 29 s
Channel: Shanli Liu, CPA, CTP
Description: In this brief instructional video, the speaker explains the difference between gross profit and net profit using a simple cat‑selling example. Gross…

14 Feb 2026 · 0 min

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In this brief instructional video, the speaker explains the difference between gross profit and net profit using a simple cat‑selling example. Gross profit is defined as the selling price minus the direct cost of the product ($15‑$7 = $8 in the example). Net profit is then described as gross profit minus all other operating expenses such as employee wages, rent, electricity, etc. The speaker emphasizes that gross profit indicates whether a product itself is profitable, while net profit shows whether the overall business is profitable. The video targets business owners interested in scaling and invites viewers to follow for more similar tips.

Net profit versus gross profit. So what's the difference? If this cat cost me $7 and I sell it for $15, my gross profit is $8. Now there's employees, there's rent, electricity, et cetera. The net profit is after you count for everything else, what's left over. So the gross profit is the price minus the cost of delivering it. The net profit is the gross profit minus the cost of everything else. The gross profit tells you if the product is profitable. The net profit tells you if the business is profitable. If you're a business owner and you're looking to scale, keep following for stuff like that.