Companies that can find ways to sell products or services which are popular and priced above what the company has to pay are more profitability than companies who can not. Some companies may not be profitable because another company finds ways to offer the same or comparative product for a lower price.Profit is the capital left over from selling a product or service after the expenses are paid to make and sell that product. When a company has a profit it simple means that the operating costs are lower than the incoming capital. Profitability measures the expenses or operating costs and whether these are the best ways to spend the capital to make and sell the products or services. Profitability describes what the target consumer is and what level of quality the products are.When I was younger I lived near a little store that sold groceries and had a deli. My mom and many other people liked to go to their deli because it was the only place near by that offered fresh deli meat and sandwiches. The prices of the other products in the store were more expensive than the other stores nearby. They went out of business after about 12 years because they finally just could not compete with the new stores in town as well as the nearby stores they had been competing with. Now that space is home to a small gym which is doing good business because the nearest gym is on the other side of town.