On July 10, 2006 at 00:18, QQQ said...
Just to argue semantics only, I think it would
be better put to say that they "run" on a gross
profit margin of 12% (I'm using your number and
assuming it's accurate, I have not looked at their
annual report) and the result is a 2% net profit.
Most major Grocery Chains... Safeway, Alberstons etc. say that their net-net (not the gross), is around 1 to 2% after costs...
A lot of the Costco stores are taking in over $1 mill a day, so 1 to 2% of that ain't too bad! How many damn Costcos are there??? Lets say if there were 50... That could be $1,000,000 daily in profits... That is unless I hit the wrong key on my calculator!?
I don't know how many Costcos there are out there... But I do know for a fact that they are making money on merchandise sales too!
When I had my own gig going... at the end of the year, I was usually about 20% in the frickin' hole!!! The high cost of not charging enough for my services & billing actual man-hours!!!
A friend of mine was selling Costco some el cheapo in-wall speaker & volume control packages a few years ago... but he gave up, because they kept requesting lower and lower prices & he was losing money!
Last edited by Mr. Stanley
on July 11, 2006 18:48.
