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689 points taubek | 1 comments | 09 Apr 25 12:58 UTC | HN request time: 0.22s | source

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AtlasBarfed ◴[09 Apr 25 19:38 UTC] No.43636776[source]▶

>>43631543 (OP) #

"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 #

1. anomaly_ ◴[10 Apr 25 03:31 UTC] No.43640346[source]▶

>>43636776 #

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.

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How much do you think it costs to make a pair of Nike shoes in Asia?