Posted by MHK on September 14, 2000 at 09:05:55:
In Reply to: Re: razor thin profit margins posted by Eins on September 13, 2000 at 19:11:20:
Eins,
Let's assume that I'm a dive shop owner, and I purchase a bc from a manufacturer for ( I'm making numbers up out of thin air so don't get too hung up on them ) $200. If I then sell it to you for $400, I have a 100% *markup*, but that by no way means that I have a profit for the year of $200.
Profit margins speak to the overall income/loss of a business not just the mere fact that they mark up a given item. BTW, this holds true for every business..
After taking into consideration all overhead, ( rent, insurance, salaries, etc. ) most dive shop do in fact operate at razor thin profit margins.
Later