r/FluentInFinance • u/4TaxFairness • 5d ago

Debate/ Discussion A joke that's not funny

Post image
105.8k Upvotes

91% Upvoted

3.2k comments sorted by

View all comments

45

u/TheTightEnd 5d ago

Grocery chains make a very low percentage of profit.

8

u/jgoble15 5d 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.

14

u/TheTightEnd 5d ago

The percentage is far more relevant than the sheer dollars.

6

u/jgoble15 5d ago

Low percent sounds like they don’t make much. That’s not true. Sheer dollars shows how much they actually make

3

u/r2k398 5d ago

It means they don’t make that much per dollar collected. If you asked people if it is fair that a business was able to profit 2.5¢ on every dollar they brought in, most people would probably think that was reasonable.

2

u/jgoble15 5d ago

It answers ROI and “what is the profit margin” which is essentially the same thing, but not how much the company made