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Their point is simply that your cost estimate is likely wrong. > It costs pennies to produce, maybe a dollar in landed cost Kellanova last had gross, operatin
by bschne 2y ago
Their point is simply that your cost estimate is likely wrong.
> It costs pennies to produce, maybe a dollar in landed cost
Kellanova last had gross, operating, and net margins of ~35%, ~13%, and ~8%, respectively [1]. Likewise, Walmart achieved ~25%, ~4%, ~3% [2]. This isn't really compatible with "someone makes 700% of net profits on this box of cereal", unless you assume cereal is single-handedly subsidizing huge loss leaders for both its producer and retailers.
1. https://www.macrotrends.net/stocks/charts/K/kellanova/profit-margins https://www.macrotrends.net/stocks/charts/K/kellanova/profit...
2. https://www.macrotrends.net/stocks/charts/WMT/walmart/profit-margins https://www.macrotrends.net/stocks/charts/WMT/walmart/profit...
- deleted 2y ago[deleted]
- lores 2y agoA 13.5 oz box of Kellogg's frosted flakes is $11 at Walmarts. A BIGGER box of 16.5oz is $4.4 in Tesco in the UK, and store brand is $1.25. Salaries are higher on average in the US, but the minimum wage that will include many in the supply chain is higher in the UK. Yes, I would say that there is gouging going on. Besides, a company makes 0% profit if all of it goes to the executives' paychecks, doesn't it?