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How much lower can profit margin get than 2% before a business stops being a business and becomes a charity? Why would it even have shareholders at that point?
by lotsofpulp 2y ago
How much lower can profit margin get than 2% before a business stops being a business and becomes a charity?
Why would it even have shareholders at that point?
Surely, even someone who hasn’t operated a business can see why revenue should exceed expenses by a couple percent to survive volatility, much less make it worth investing in.
- blackeyeblitzar 2y agoMaybe it should be near 0% for this business because that is the end result of competition and a functioning market. Or maybe they should just become better at operating more efficiently. But what they shouldn’t do is artificially create profit margin by stealing from their customers and handing them death sentences instead of providing the care that is paid for. When you deceive and defraud customers and literally cause them harm when they’ve paid you to avoid harm, that does seem evil. That’s what I’m pointing out.
- jimbob45 2y agoThe business model contains dark patterns incentivizing patient deaths in many cases. It’s not that they’re turning a profit, it’s that they’re profiting off of death. If it was a break-even org (I.e. non-profit), people would likely have less of an issue with it.