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When you have over half a trillion of revenue a year the fractions of a percent add up. Doing this allows them to negotiate a lower price from the manufacturer
by m_ke 2y ago
When you have over half a trillion of revenue a year the fractions of a percent add up.
Doing this allows them to negotiate a lower price from the manufacturer or get the manufacturer to adjust the ingredients to lower the COGS. So either it increases their own margins or allows them to have lower prices than the competition.
- AnthonyMouse 2y ago> When you have over half a trillion of revenue a year the fractions of a percent add up. The issue is that the estimate doesn't get you the fraction of a percent because it isn't accurate to within a fraction of a percent, so you don't know if it implies you can squeeze them for much more or not.