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Because politicians and the media tell them that. They don't verify though and just take their word for it.
Part of it is also that percentages aren't used but dollar numbers. The same thing is done with oil companies and their "record profits".
If your margin is 2% and last year you sold $100 worth of product your profit is $2. If this year you sell $200 worth of product with the price increase due to inflation and your margin is still 2% you made $4. You "doubled" your profit.
I've said many times that for a lot of people any number with more than four digits gets them confused. I saw that happen time after time as a local elected official.
Part of it is also that percentages aren't used but dollar numbers. The same thing is done with oil companies and their "record profits".
If your margin is 2% and last year you sold $100 worth of product your profit is $2. If this year you sell $200 worth of product with the price increase due to inflation and your margin is still 2% you made $4. You "doubled" your profit.
I've said many times that for a lot of people any number with more than four digits gets them confused. I saw that happen time after time as a local elected official.
Bingo!
And I would also add that many people don't understand percentages.
I don't know why people think Walmart rakes in a huge profit. It doesn't.
I didn’t say they made a huge profit. I said they’re not just taking a loss on “many” items in order to get people to buy the higher dollar items. And now with free grocery pickup, there are people not even setting foot in the store and only buying grocery items, yet they had to hire many people and create systems to even make this possible. They are making money in there somewhere or they wouldn’t be doing it. It’s not a charity.
What is the actual dollar amount of the profit margin? What is their net when all is said and done in a normal economy? They absolutely do make money and just looking at margins, esp in this current time, is totally disingenuous.
I didn’t say they made a huge profit. I said they’re not just taking a loss on “many” items in order to get people to buy the higher dollar items. And now with free grocery pickup, there are people not even setting foot in the store and only buying grocery items, yet they had to hire many people and create systems to even make this possible. They are making money in there somewhere or they wouldn’t be doing it. It’s not a charity.
What is the actual dollar amount of the profit margin? What is their net when all is said and done in a normal economy? They absolutely do make money and just looking at margins, esp in this current time, is totally disingenuous.
Are you sure they're not taking a loss? Their NEGATIVE profit margin says otherwise.
Part of it is also that percentages aren't used but dollar numbers. The same thing is done with oil companies and their "record profits".
If your margin is 2% and last year you sold $100 worth of product your profit is $2. If this year you sell $200 worth of product with the price increase due to inflation and your margin is still 2% you made $4. You "doubled" your profit.
I've said many times that for a lot of people any number with more than four digits gets them confused. I saw that happen time after time as a local elected official.
Quote:
Originally Posted by InformedConsent
Bingo!
And I would also add that many people don't understand percentages.
Except that in this particular argument being made, dollar amounts actually do matter. Walmart is not doing badly under normal circumstances. The only interest I have in that negative number posted is to prove to people like Clara that grocers aren’t price gouging. Grocer margins are slim - slimmer than restaurants. Talking about sales in a restaurant tells you not much about its bottom line, same applies in this discussion. But that’s not even the point and we’re veering way off course.
Are you sure they're not taking a loss? Their NEGATIVE profit margin says otherwise.
Please read my entire post and the one I originally replied to. I am not interested in discussing losses under covid circumstances unless as mentioned above regarding proving Clara wrong. Lol
Please read my entire post and the one I originally replied to. I am not interested in discussing losses under covid circumstances unless as mentioned above regarding proving Clara wrong. Lol
We're not under covid circumstances. Walmart's CURRENT profit margin is negative. They're LOSING money, not making a profit.
Here we go again with the Left moving the goal posts.
I'm sure there has been many people that have been forced to turn to the store brand of items to make their money stretch further. This is why we have been seeing those Dollar stores getting more popular.
Moving the goal posts and hyping the positives while downplaying the negatives. Welcome to politics 2023 where lying to us is all they can do.
The news media pushes CORE INFLATION %, because it doesn't include food, gas, or energy costs....which is where most of us feel inflation most. Core inflation is nearly meaningless to us, but its always mentioned becauae its lower than the real CPI inflation, & MUCH lower than just food,gas, & energy.
Mentioning CORE INFLATION at all, is moving the goal posts.
Both political parties do it, but the left gets a huge assist by their media accomplices.
I want to see the inflation rate for JUST food, gas, & energy....I've NEVER seen that reported...have you? I'd guess it to be ~15% (rolling 12 mo. avg).
This article jokingly calls it the "Omelette inflation index" to make the same point that food, gas, & energy inflation is never mentioned...it just gets cancelled, or offset to marginalize it. Omelette costs are up 50%!
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