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Posted on 5/2/18 at 9:30 pm to TH03
quote:
Yes. Talking strictly about a margin on a specific item, it's (retail price - cost)/retail price.
I'd pull that accounting book back out bubba.
Posted on 5/2/18 at 9:32 pm to weagle99
Donuts, but most of the time donut shops are just money laundering fronts so there’s that.
Posted on 5/2/18 at 9:34 pm to Cotten
quote:
Donuts, but most of the time donut shops are just money laundering fronts so there’s that
I've seen these a lot so let's clear this up, no food item is high margin. They may be high CM (contribution margin), but their profit margins are razor thin.its a volume business. High profit margin items are going to be expensive, uniquely identifiable items like jewelry or boats, things of that nature.
This post was edited on 5/2/18 at 9:35 pm
Posted on 5/2/18 at 9:37 pm to Mingo Was His NameO
quote:
I'd pull that accounting book back out bubba
You trying to tell me margin on an item isn't what I said?
(Item price - item cost)/item price is margin
(Item price - item cost)/item cost is markup
Please argue that.
I do this everyday in independent liquor stores and managed a grocery store for 2 years before that.
Posted on 5/2/18 at 9:41 pm to TH03
quote:
Items that must have huge profit margins
quote:
(Item price - item cost)/item price is margin
COGS=DL+DM+VMOH(variable manufacturing overhead)
Contrubution margin (what you're talking about) is SP-DL-DM
quote:
I do this everyday in independent liquor stores and managed a grocery store
That's cute. I do it everyday as well, except as an accountant.
Posted on 5/2/18 at 9:42 pm to slackster
Pharm is blockbuster profit... most projects fail and it’s a very big gamble. Lots of putting good money after bad and companies exchanging hands for solvency keeping a project alive. Once a project get legs marketing comes full steam ahead though... $$$
Posted on 5/2/18 at 9:48 pm to Mingo Was His NameO
quote:
Contrubution margin (what you're talking about
Except it isn't. I've very clearly stated what I'm talking about, which is what the OP was referring to.
From the OP
quote:
A glass of ice tea at a restaurant. Costs $2.50 a glass and probably costs 5¢ to make.
Egg crate foam dog beds. $80 for something that cost $3 in materials.
Sex robots?
It's a very simple excercise that you're complicating for some reason. This whole thread is about gross profit margin.
This post was edited on 5/2/18 at 9:49 pm
Posted on 5/2/18 at 9:54 pm to TH03
quote:
It's a very simple excercise that you're complicating for some reason. This whole thread is about gross profit margin.
I was specifically replying to your comment that overhead isn't included in margin when, in fact, it is.
ETA: Exactly what you said,
quote:
Overhead isn't calculated in profit margin. P&L is a different story than the margin on a Coke.
This post was edited on 5/2/18 at 9:55 pm
Posted on 5/2/18 at 9:58 pm to Mingo Was His NameO
quote:
I was specifically replying to your comment that overhead isn't included in margin when, in fact, it is
on an individual item
Like I’ve said 30 times, profit on an individual item isn’t the same as your bottom line.
You know this, I know this, you’re arguing against something that I never said.
The post you first replied to differentiated between a single item profit and a P&L statement. You just wanted to argue for no reason.
Posted on 5/2/18 at 9:59 pm to Mingo Was His NameO
quote:
Exactly what you said,
quote:
P&L is a different story than the margin on a Coke.
Good god you’re dense.
Posted on 5/2/18 at 10:00 pm to weagle99
RVs. Mark up is Yuge
Posted on 5/2/18 at 10:00 pm to Mingo Was His NameO
I’m here for this nerd fight.
Posted on 5/2/18 at 10:01 pm to 777Tiger
quote:
They don’t have similar overhead?
Bar overhead is not even remotely similar to restaurant overhead.
Bar margins are magnificent. Restaurant margins are thin at best. Higher product costs per serving and ridiculously higher labor, equipment, etc. overhead.
Posted on 5/2/18 at 10:02 pm to weagle99
Tea is $2.99 at B-Dubs now
Furniture if it hasn't been mentioned already.
Furniture if it hasn't been mentioned already.
Posted on 5/2/18 at 10:03 pm to TH03
(no message)
Posted on 5/2/18 at 10:03 pm to TH03
quote:
Overhead isn't calculated in profit margin
I mean you said this not me.
quote:
You know this, I know this,
I'm not sure you do, or you wouldn't have said overhead wasn't a part of margin.
I'm just trying to help you out partner. Trying to make you a more learned individual.
Posted on 5/2/18 at 10:04 pm to Mingo Was His NameO
You guys are both right. One is looking at the company or product line, the other is just doing unit cost analysis. Get on with it.
Posted on 5/2/18 at 10:05 pm to Mingo Was His NameO
quote:
Mingo Was His NameO
I'm glad someone in here actually understands profit margin.
Posted on 5/2/18 at 10:05 pm to Mingo Was His NameO
quote:
I mean you said this not me.
And in context with the next fricking sentence as well as the OP, you know I’m talking about gross profit margin.
You can’t take things out of context and then argue against the context you’d like to put it in. This is retarded.
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