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No, I’m talking about groceries. Food, stuff you need to live. Gross margins in Australia for the top two chains were about 28% last I looked.
by doctor_eval 5y ago
No, I’m talking about groceries. Food, stuff you need to live. Gross margins in Australia for the top two chains were about 28% last I looked.
- mthoms 5y agoProfit margin is more useful metric to determine if you're being gouged - Grocery stores: < 3% Profit margin, huge inventory risk. App store: > 70% profit margin, zero inventory risk. Put another way: If grocery stores cut gross margin by a couple points they'd be out of business. They are basically charging the absolute bare minimum they need to make a profit. The reason? Competition. Apple could drop their App Store gross margin by 50% and still have one of the most lucrative operations in the world.