Quote:
Originally Posted by Zeke
When I used to build convenience stores in '83 the owner told me that if a pack of gum was stolen it took the sale of 5 more packs to put him where he would be profit wise if he SOLD that first pack.
I never did the math. If I did I suppose I would know his mark up. Or he may have been exaggerating. I just tried the math: I think his MU was 40% assuming he was counting the lost profit on the stolen pack. I wonder what his accountant thought about that knowing that there was some handling labor for the stolen pack. Actual loss seems different.
Anyway, there was no candy within reach of the customers, which for candy was a lot of school kids. Those are 2 reasons I never owned a store.
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Walmarts net profit margin on goods sold is 3.1%. They rely on volume