Profit, generally speaking, is what is left over after all the bills have been paid. To make a profit requires that the concern sell its goods services for more than it costs to produce and deliver them. In other words, the selling price must be high enough to pay all the costs of purchasing, transportation, manufacturing, selling, delivering, office work, and supervision. If the selling price is not high enough to include all the costs, then the concern suffers a loss, if the loss continues, the concern must go out of business. This throws out of work all the employees who depend on the concern for their living. The selling price, must be high enough to cover all costs of doing business. But if the selling price covers only the mere cost of doing business, so that nothing is left over after paying all the bills, then there is no profit.
It is usually the hope of making a good profit than attracts men of ability to business. If a man felt that the best he could expect from hard work and long hours was a bare living, he probably would feel that the efforts was not worth while. As the saying goes “The game is not worth the candle.” So it is the hope of a adequate reward that induces men to go into business. If the hope of that rewards is taken away, capable men will not be willing to put into business the time and energy needed for success.