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[quote]QUOTE: Originally posted by Murphy Siding [quote]QUOTE: Originally posted by futuremodal [quote]QUOTE: Originally posted by Murphy Siding [quote]QUOTE: Originally posted by futuremodal That's what businesses do, determine prices charged to their consumers based on their costs. [/quote] Nope. I take it you've never worked in a business where you had to compete? The selling price is based on market competition, not on your cost. [/quote] "Compete" is the key word there, alfalfa. If you had taken any economics classes, the first theory they teach you is the old "cost + 10%" rule of thumb which only applies to competitive markets. In monopolistic markets, it's more like "cost + the sky's the limit" because there is no competition there to keep you honest. Why is this so hard for you to grasp? [/quote] OK. To be fair, I went back and re-read your post. It still says the same thing, and you're still wrong. If you'd ever worked in a business that had to compete you'd understand why you are wrong. Why is that so hard to grasp?[;)] If you don't mean what you say, why don't you say what you mean? It's way to hard for those of us with average intelligence to decipher what you *mean*, when it's different than what you *say*.[}:)] [/quote] The "cost + 10%" is a standard for the retail sector. I worked in a grocery store in my younger years, and got to know this caveat. No, it's not 10% for every item. Rather, it is a rule of thumb to determine a minimumly acceptable profit margin for high volume businesses. It is not set in stone. Some items have higher markups, some have negative markups. But the average markup should be in the 10% range. What I would like you to do for me Murphy is this: Since you are a seller of lumber, go through the various varieties and configurations of the lumber you sell, and find the average markup on each item. What is your store's average markup for the aggregate product? Is it in the 10% range give or take, is it lower (5%), or is it much higher (say 25%)? Can it not be argued that railroad transportation services are a high volume business? I'll stop here and let you catch up.
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