←back to thread

689 points taubek | 3 comments | | HN request time: 0.435s | source
1. AtlasBarfed ◴[] No.43636776[source]
"Everyone needs a fixed percentage to make money"

I get they WANT to, and it's what a shoe retail strives for, but this isn't accurate.

Cars for example aren't 100% marked up. That would be insanity.

replies(2): >>43636836 #>>43640346 #
2. bluedino ◴[] No.43636836[source]
Shoe dealerships don't sell used shoes and have service/parts departments where they make most of their money
3. anomaly_ ◴[] No.43640346[source]
Because cars are a high $ item vs. shoes. A business's overheads don't scale linearly with item price, so it's possible for a car mfg to achieve a similar net profit margin to a shoe mfg but with substantially lower gross profit margins.