RC> Hello Bob!

 RC> 08 Nov 08 23:45, you wrote to Jim Holsonback:

 JH>>> Once again, Klahn demonstrates that doesn't know WTH he's
 JH>>> talking about. He is so ignorant of business and accounting
 JH>>> that he doesn't even know how profit margin is determined.

 BK>>  And you aren't bright enough to figure out, if they make any
 BK>>  profit at all on $2/gal, they are making 100%+ at $4/gal.

 RC> I hope you wont mind my 28.5 years of retail experience
 RC> dampen your day, for none of your stubborness can negate
 RC> it..

 Do you understand that there is such a thing as profit on
 investment? Profit on sales. Profit vs cost?

 RC> Profit margin is determined by dividing the cost by the
 RC> retail.

 And if I was talking about "profit margin" that would be
 interesting.

 RC> Cost = $2

 RC> Sell = $4

 RC> $2 / $4 = 0.50

 RC> 50%

 Margin. Cost = $2. Sell = $4. Profit = $2. Profit equaly 100% of
 cost. Also, if the cost is the investment, then profit equals
 100% on investment. Now, turn it over several times and it adds
 up even more.

 The ROI determines if it's worth doing.

 RC> In my early days  I used to think the same as you, until I
 RC> got shown how the numbers crunching went on in bookeeping
 RC> when I got shown how to merchandise, order and plan.

 And if you ever build your own store you better figure your ROI.

 BK>>  Hey, it ain't rocket science.

 BK>>  BTW, I am the one continually explaining economics to you right
 BK>>  wingers.

 RC> and one just explained it to you..

 In a limited way.

BOB KLAHN bob.klahn{at}sev.org   http://home.toltbbs.com/bobklahn

... I'm an amateur crastinator; someday I'll turn Pro.
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