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Shufflepants t1_je59nmg wrote

Yes, I know profit margins are a thing. But my question is whether those margins are reasonable, compared to other kinds of products (say 5%-15%), or is it almost entirely profit, (like does it only cost them like $50 to make). That's why I said "even close".

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Birthday_dad420 t1_je5wyy2 wrote

"say 5%-15%" Big supermarket chains: *Laughs in 300%+"

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Shufflepants t1_je6886d wrote

What supermarket products have a 300% profit margin? Remember, profit is after all costs. A 300% markup is not the same thing as 300% profit.

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Birthday_dad420 t1_je8kb0a wrote

I meant it like they produce it for 100% then sell it for 400%

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Shufflepants t1_je8m4oq wrote

Supermarket's don't produce anything. They buy stuff from distributors or producers and then resell it. Are you suggesting supermarkets you go to are buying things for x and then selling it for 4*x, or are you suggesting that they buy it for x and then sell for (x+c)*4 where c is a proportional amount of all their other costs?

I'm talking about profit margins which subtract out all their costs. Everything I can find says that grocery stores typically operate on 1%-3% profit margins. Nowhere near the absurd rate you're suggesting.

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