General Discussion

Blue_true

(31,261 posts)

40. Sane businesses shoot for a gross margin in the 65% range.

Sat Jul 7, 2018, 10:36 AM

Jul 2018

Generally gross margin is calculated after wages and depreciation. BUT, although 65% seems high, that must cover all taxes and fees, as well as investments for future operations and inventory. A business that is getting GM below 50% is borderline.

I agree with your synopsis. Your husband takes an inherent risk when he buys a fixer upper car, that risk is that there won't be something terrible and wrong that turns out to be costly to fix, plus, even when things go well, will someone be there to buy it, or can he auction it off for a profit. It looks at how much he spent on a car and his time and he sets a sale price that is hopefully for him, lower than competing car offers. Profit is the reward for taking a risk, anyone advocating taking that reward away is pushing a non starter concept.

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What does "abolish profit" mean? [View all] MichMary Jul 2018 OP

Have you asked a Democratic Socialist what it means? n/t leftstreet Jul 2018 #1

I don't know any. n/t MichMary Jul 2018 #8

If you have Google, you can look up their platform leftstreet Jul 2018 #11

So how does a business make money if there is not profit? Adrahil Jul 2018 #29

"Mom and Pop" vs Pharmaceutical Corporation leftstreet Jul 2018 #71

Well, we need pharmaceutical companies. We can't get drugs from Mom and Pop operations. pnwmom Jul 2018 #117

They don't have to be privately owned leftstreet Jul 2018 #119

OR we could have government researchers ALSO developing drugs. pnwmom Jul 2018 #120

THAT would be a huge step forward leftstreet Jul 2018 #121

I'm so sick of this socialism vs capitalism debate. Only a healthy, dynamic blend works. DemocracyMouse Jul 2018 #129

Volume. NT mahatmakanejeeves Jul 2018 #108

0% on 100 items 0% on 10,000 items. Adrahil Jul 2018 #112

They conflate the roles of government and private business. Blue_true Jul 2018 #31

Their position is no business owners or profit Lee-Lee Jul 2018 #110

That is a ridiculous viewpoint. Blue_true Jul 2018 #115

DAMN!! lark Jul 2018 #2

I checked their Twitter feed MichMary Jul 2018 #5

Looks like a winning platform...../s comradebillyboy Jul 2018 #9

Really, are you making joke? lark Jul 2018 #12

note the /s comradebillyboy Jul 2018 #18

Sounds reasonable! Oneironaut Jul 2018 #57

I've been thinking this as well fallout87 Jul 2018 #131

This message was self-deleted by its author sfwriter Jul 2018 #80

I don't think it means that MichMary Jul 2018 #81

I wonder why they pick up on the republican accusation that Democrats want "open borders"? George II Jul 2018 #96

It's not quite this simple JackintheGreen Jul 2018 #36

I get your point, but still think attacking it from the profit end is not productive in an election. lark Jul 2018 #142

I actually agree JackintheGreen Jul 2018 #143

well, no profit doesn't seem like a working system, or rather, it comes with all kinds of JCanete Jul 2018 #130

To be their own boss, to bring a product or service to a wider market, to fill an otherwise unfilled WhiskeyGrinder Jul 2018 #3

Does that mean no more stock market? n/t MichMary Jul 2018 #7

Really bad slogan lamsmy Jul 2018 #88

But Northern European nations are not socialist. GulfCoast66 Jul 2018 #99

????? lark Jul 2018 #15

I really don't understand this MichMary Jul 2018 #19

Depends on whether they mean 'gross profit' or 'net profit' ... (nt) mr_lebowski Jul 2018 #20

Partially, I agree. lark Jul 2018 #22

Adequate gross profit can look obscene, whe in fact it is not. Blue_true Jul 2018 #47

we have lots of non-profits doing really great things scarytomcat Jul 2018 #33

I have worked for non-profits MichMary Jul 2018 #41

OMG. What, did you have to sell candy bars door to door or something like that? kcr Jul 2018 #91

My employment experience MichMary Jul 2018 #92

Yeah. Relying solely on donations to provide services is a pretty sucky way to do things. kcr Jul 2018 #95

I can't imagine MichMary Jul 2018 #105

Local and state governments do so all the time. kcr Jul 2018 #118

No problem with real non-profits. lark Jul 2018 #42

I think the question becomes how much profit is right scarytomcat Jul 2018 #86

This isn't about salaries, it's about profit. lark Jul 2018 #94

Sane businesses shoot for a gross margin in the 65% range. Blue_true Jul 2018 #40

pay, salary, wages, etc... handmade34 Jul 2018 #114

You aren't thinking broadly enough. lark Jul 2018 #125

You're missing a ton of stuff, though.... Adrahil Jul 2018 #32

Bizam, Bingo. Some simply can't grasp that. I think that EVERYONE that hate the concept of profit, Blue_true Jul 2018 #49

you sure it wasn't edhopper Jul 2018 #4

See the Tweet linked above MichMary Jul 2018 #6

That sign and text looks like "abolish profit from prisons" muriel_volestrangler Jul 2018 #51

Exactly how does that work? Blue_true Jul 2018 #52

i don't know, edhopper Jul 2018 #97

I was curious, so I looked at it. Yonnie3 Jul 2018 #10

But, MichMary Jul 2018 #13

Including you, obviously. ret5hd Jul 2018 #14

Well, MichMary Jul 2018 #17

You wrote that you read the platform said abolish profits. Yonnie3 Jul 2018 #21

The platform didn't say the words in the OP? american_ideals Jul 2018 #30

I made a stupid assumption MichMary Jul 2018 #37

It is difficult. Yonnie3 Jul 2018 #46

So your OP is fake news it seems. Kingofalldems Jul 2018 #70

Feel free to do so. nt Yonnie3 Jul 2018 #38

Just noting that this is the day Skidmore Jul 2018 #89

I couldn't agree more. Yonnie3 Jul 2018 #90

The selection of phrases is important. Blue_true Jul 2018 #53

What does this mean? MichMary Jul 2018 #50

Or to put it another way wellst0nev0ter Jul 2018 #100

They are socialist? GulfCoast66 Jul 2018 #102

Boom! Thanks, OP is made up. Kingofalldems Jul 2018 #74

It's a stupid unsellable slogan Loki Liesmith Jul 2018 #16

What if it's targeting for-profit prisons and the like? wellst0nev0ter Jul 2018 #101

Sure Loki Liesmith Jul 2018 #106

I'm a firm believer in source documents. Igel Jul 2018 #23

Maybe no one will be in business Yupster Jul 2018 #24

Come on. DSA is center-left on a world scale american_ideals Jul 2018 #28

I taught history in high school and college Yupster Jul 2018 #43

You almost have it right- the DSA holds one difference Lee-Lee Jul 2018 #72

Can't think of anything Yupster Jul 2018 #98

Profit is "surplus value appropriated from labor." yallerdawg Jul 2018 #104

You gotta be kidding..... Adrahil Jul 2018 #34

they might run a business to earn a living (a pay check) scarytomcat Jul 2018 #25

What about funding future inventory, unexpected expenses? nt Blue_true Jul 2018 #55

bank loans personal capital scarytomcat Jul 2018 #87

Are you a business person? Blue_true Jul 2018 #93

Post a link to their platform if you think it's important? american_ideals Jul 2018 #26

Again, sloppy phrasing. Blue_true Jul 2018 #27

It's a simplistic slogan. MineralMan Jul 2018 #35

As I posted above, MichMary Jul 2018 #39

W-2 Workers Often Don't Think about Profits MineralMan Jul 2018 #44

When I worked W2, I cared a great deal about profits fescuerescue Jul 2018 #116

To continue - Most of my work is for clients who own and operate MineralMan Jul 2018 #48

Most W2 employees only think about their pay checks. Blue_true Jul 2018 #58

No, they mean all profit. See my explanation below. Lee-Lee Jul 2018 #56

You have to understand Marx to understand the DSA and what they want Lee-Lee Jul 2018 #59

Then they're ignoring American entrepreneurship altogether. MineralMan Jul 2018 #60

Agreed. But that's their vision Lee-Lee Jul 2018 #63

Uff da! In that case, they're more irrelevant than I thought. MineralMan Jul 2018 #66

I can understand the reasoning behind it. Though the specifics of implementation Lint Head Jul 2018 #45

Any business person that is making a $10 billion profit, or even a $100 million profit, Blue_true Jul 2018 #61

"rich people being more vocal and politically active than poorer people". Exactly. Most of the poor Lint Head Jul 2018 #84

Here is how a very active DSA type explained it to me. Basically abolishing private business owners Lee-Lee Jul 2018 #54

Silly concept. In worker owned businesses, why should an owner even bother? Blue_true Jul 2018 #64

In thier vision that's all done collectively Lee-Lee Jul 2018 #65

Not workable. Where has true Marxism ever worked? Blue_true Jul 2018 #67

You have to understand Marx to understand what they want and mean Lee-Lee Jul 2018 #62

So why did Marx write the manifesto? n/t discntnt_irny_srcsm Jul 2018 #68

Why? Lee-Lee Jul 2018 #69

So, he was paid to? discntnt_irny_srcsm Jul 2018 #77

My guess is that it is supposed to be "abolish for profit prisons" and the last word got dropped grantcart Jul 2018 #73

No, they mean profit Lee-Lee Jul 2018 #76

I didn't read your comments because they assert a definitive grantcart Jul 2018 #78

Here is one link for you: Lee-Lee Jul 2018 #82

Your patronizing "spoon fed to them" is noted. grantcart Jul 2018 #113

That disproves your point muriel_volestrangler Jul 2018 #123

It is in how they define profits Lee-Lee Jul 2018 #132

Is there anything to indicate the DSA define "profit" like that? (nt) muriel_volestrangler Jul 2018 #135

Read Marx, it's where all their base economic beliefs originate Lee-Lee Jul 2018 #136

No, I think you are mistaken in thinking they all stopped thinking 150 years ago muriel_volestrangler Jul 2018 #137

Of course they don't put the hard line stuff out there Lee-Lee Jul 2018 #139

Interesting thread eh? Kingofalldems Jul 2018 #83

Profit vs. Prosperity northremembers Jul 2018 #109

Not to be argumentative but I find these groups tedious and boring grantcart Jul 2018 #111

Here's what it means for elections... GaYellowDawg Jul 2018 #75

They also want to "abolish prisons" grantcart Jul 2018 #79

Abolish profit means "We don't ever want to win an election, ever" comradebillyboy Jul 2018 #85

that means you have a business in Arkansas WhiteTara Jul 2018 #103

the most antiamerican slogan I've heard yet AlexSFCA Jul 2018 #107

People drive innovation and the economy ck4829 Jul 2018 #124

Serious question of my own. Is this actually a concern? JHB Jul 2018 #122

It is not anywhere in the Democratic Platform Wwcd Jul 2018 #127

I know that it's not part of the Democratic party platform... JHB Jul 2018 #128

Here is my concern- when DSA members and endorsed people run on our ticket it becomes our problem Lee-Lee Jul 2018 #133

Well, what do you propose? Shut down every fringe party... JHB Jul 2018 #134

There is no good answer Lee-Lee Jul 2018 #138

I thought it was more... Crutchez_CuiBono Jul 2018 #126

On DU, it often means avoidance of relevant research in order to pretend sincerity. LanternWaste Jul 2018 #140

Can you show me where that is part of the overall platform of Democratic Socialists? NCTraveler Jul 2018 #141