re: Items that must have huge profit margins

I bought a set of BFG 33s for less than $900 two years ago, what kinda wheels you talking about?

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Just a week ago, after extensive research, I was able to pay less than 1,200 for a set of tires for the first time in about 10 years.

But I'm counting tires for little cars and shite too...

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You serious?

I paid $800 for 4 Cooper all terrains on my Tundra. I expect less than $600 on my next set for my rav4

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All I'm saying is overhead is included in profit margin, when you said it was not.

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And I’m saying in the context on my post, it was clear I was talking gross profit margin on an individual item.

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What most people think of as profit is actually net income (usually EBITA)

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Agreed. I got bonused on EBITDA.

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And I’m saying in the context on my post, it was clear I was talking gross profit margin on an individual item.

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I'm not trying to be a dick, I really am not sure if you understand. Individual items still have overhead included in their gross profit. The price of one widget is Direct Labor + Direct Materials + Variable Manufacturing Overhead. Fixed Overhead isn't a product cost, but variable overhead is and it will be applied on a per unit basis by one of the few methods of your choice.

An example would be say the labels and caps for liquor bottles. We aren't going to direct cost them because they are to hard to accurately track, but let's say we spend $1000 on them and produce 100,000 bottles. We are going to apply $.01 directly to each bottle, which in turn, is going to hit gross profit.

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They actually spend more on advertising than on R&D.

This article is from 2015, but I think it's only gotten worse.

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We need to be clearer on our terms here and dig a little into why this came to be.

First, it's marketing, not advertising. Most pharma companies' ad budgets aren't outlandish (at least compared to most of their valuation peers) when it comes to B2C advertising.

Those outlandish direct-to-provider marketing budgets come from two things: free samples and large sales forces. In effect, the market price that we're charged is subsidizing those samples (which also virtually always go to consumers). It's product that is essentially baked into the price.

Second, the big pharma companies these days do as much M&A in acquiring promising biotech as they do actually developing it themselves. That is not baked into the R&D numbers for these firms.

Where the big pharma firms really provide value is in taking products through trials. They are much better at both taking products through trials and building a large portfolio of potential products that the firm can stay viable. That $1,000 month or whatever it is prescription you're paying for pays as much for failed tech (you'll see some numbers on the order of only 1 in 70 that start phase 1 will end up on the market) as much as it is for the actual product you're purchasing.

Sorry boys. the most expensive item on earth is pussy. the amount paid vs the value over time aint good. Those sex robots could be a thing. just sayin.

college degrees. universities are charging way more than they are worth.

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mattresses have the highest mark up of anything you buy.

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material cost on a Tempurpedic full foam queen mattress is about $200...it retails for $4000. Pretty solid margins there

Tiny things of make-up