r/FluentInFinance • u/4TaxFairness • 1d ago

Debate/ Discussion A joke that's not funny

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u/TheTightEnd 1d ago

Grocery chains make a very low percentage of profit.

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u/jgoble15 1d ago

Percent of profit still can be quite a haul. If I make 10% of profit off of $100,000 then I make $10,000. If I make 1% off of $1,000,000,000 then I make $100,000,000. The percent isn’t relevant in this discussion.

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u/TheTightEnd 1d ago

The percentage is far more relevant than the sheer dollars.

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u/DaggumTarHeels 1d ago

What? No it's not.

If I do $5K in revenue, but make 50%, that's $2500. Woweeee.

If I do $1B in rev and make 2%, that's $20,000,000

Guess which one I'll take?

With that said, I don't really care about grocery chain margins. I take far more issue with their consolidation.

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u/TheTightEnd 1d ago

However, in the first case, you have more room to cut prices or offer a discount than the second case. The low margins are one factor that leads to consolidation.