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Old 09-30-2013, 04:31 PM
 
Location: San Jose
1,853 posts, read 2,028,631 times
Reputation: 539

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I think she makes sense with her argument....

http://www.upworthy.com/a-ceo-tried-to-give-a-senator-a-math-lesson-so-she-had-to-calmly-explain-how-math-actually-works-am2-11b-2?c=ufb1
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Old 09-30-2013, 04:37 PM
 
11,780 posts, read 8,211,669 times
Reputation: 3425
No she doesn't. She picks out McD's and they have a 20% profit margin, but most restaurants have profit margins in the single digit range. Grocery stores have about a 1% profit margin and they are already automating instead of hiring people to start at min wage.
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Old 09-30-2013, 04:39 PM
 
Location: Long Island
29,546 posts, read 12,355,783 times
Reputation: 6111
He looked lost, would have liked to see of the McDonald's CEO show us the math.
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Old 09-30-2013, 04:48 PM
 
7,372 posts, read 4,436,083 times
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No, she doesn't make sense with her argument. The reason is that she's applying McDonalds to another restaurant. She simply takes the average price a $7 meal would rise at McDonalds and doubles it for the other restaurant's $14 meal. But what this does not address is the amount of sales an employee generates. If the McDonalds employee sells 3 of those $7 meals per hour while the other retaurant's employee only sells 2 of their $14 meals per hour then then you can't simply double the prince increase of the McDonalds meal and apply it to the other restaurant. You must consider volume.

Liberals always go towards the giant corporations that pay thousands of employees little money. This makes for good rhetoric. But the fact is that most people aren't employed by giant corporations. Most people are employed by small businesses. Those businesses don't have nearly the revenue of the giant corporations.
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Old 09-30-2013, 04:51 PM
 
Location: Long Island
29,546 posts, read 12,355,783 times
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Quote:
Originally Posted by lycos679 View Post
No she doesn't. She picks out McD's and they have a 20% profit margin, but most restaurants have profit margins in the single digit range. Grocery stores have about a 1% profit margin and they are already automating instead of hiring people to start at min wage.
There is not one business that can survive on a 1% profit margin.
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Old 09-30-2013, 04:53 PM
 
9,473 posts, read 5,654,834 times
Reputation: 2161
LOL, A Warren clone tries to debate reality and loses...

https://www.youtube.com/watch?v=60rvDF1kpcQ
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Old 09-30-2013, 04:53 PM
 
Location: Annandale, VA
5,098 posts, read 4,123,743 times
Reputation: 4199
Quote:
Originally Posted by Goodnight View Post
There is not one business that can survive on a 1% profit margin.

Grocery stores only have a 2% profit margin.
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Old 09-30-2013, 07:15 PM
 
Location: Long Island
29,546 posts, read 12,355,783 times
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Quote:
Originally Posted by Spaten_Drinker View Post
Grocery stores only have a 2% profit margin.
Show me an example of a grocery store large or small that can survive on a 2% profit margin. Why would you even think of going into business for a 2% profit margin unless you have a low regard for money.
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Old 09-30-2013, 07:23 PM
 
2,721 posts, read 2,145,866 times
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High competition, low barriers to entry, commoditized product = low margins, indeed often around 2% for companies like safe co, etc. high volumes help to offset low margins. You can only charge so much for a bottle of ketchup.

Quote:
Originally Posted by Goodnight View Post
Show me an example of a grocery store large or small that can survive on a 2% profit margin. Why would you even think of going into business for a 2% profit margin unless you have a low regard for money.
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Old 09-30-2013, 07:27 PM
 
11,780 posts, read 8,211,669 times
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Quote:
Originally Posted by Goodnight View Post
Show me an example of a grocery store large or small that can survive on a 2% profit margin. Why would you even think of going into business for a 2% profit margin unless you have a low regard for money.
Why do you think people aren't opening up grocery stores?

Safeway's quarterly profit margin was just .10%.
Safeway Profit Margin Quarterly (SWY)

Kroger's profit margin was 1.4%
Kroger Profit Margin Quarterly (KR)

Supervalue was 1.65%.
SUPERVALU Profit Margin Quarterly (SVU)


If we expand to superstores that sell more than just groceries we find a similar trend.

Walmart was 3.45%
Wal-Mart Stores Profit Margin Quarterly (WMT)

Target was 3.57%.
Target Profit Margin Quarterly (TGT)
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