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In retail, yes. Retail margins are usually less than 3%; so $20m/yr in revenue would give you less than $600k/yr in profit. Not bad money by any means; but cert
by exelius 12y ago
In retail, yes. Retail margins are usually less than 3%; so $20m/yr in revenue would give you less than $600k/yr in profit. Not bad money by any means; but certainly not enough to need a bunch of shareholders.
Contrast this with the fact that an average Walmart does over $100 million a year in revenue (though Walmart's margins are closer to 1%), and it's actually not that huge.
- moggflunkies 12y agoMom and dad are retailing $55,000+/day, 7 days a week, open most holidays.... You guys are stretching the phrase "mom and pop" to lengths it has never been before.
- arbuge 12y agoI am not sure what kind of retail you are referring to (offline grocery perhaps?) but most ecommerce retail operations are running margins significantly higher than 3%. 10-30% is more typical in my experience, and 40-60% for operations selling unique products they make themselves.
- jljljl 12y agoGross or net margins?
- andrewtbham 12y agoWal-Mart's margins are 3.3% (Trailing 12 months) http://finance.yahoo.com/q/ks?s=WMT+Key+Statistics http://finance.yahoo.com/q/ks?s=WMT+Key+Statistics
- exelius 12y agoAh; you're right. I was recalling a statistic that Walmart's margin on specific items can be as low as 1% and must have gotten them confused. :)
- chops 12y agoAt first, I thought "you meant $100 billion" not "million", until, on a 2nd or 3rd rereading, I realized you were referring to an average single Walmart store does over $100m in revenue. So I thought I'd throw this comment in here in case others were misreading it as I did.
- bronbron 12y agoTotally did the same thing. Thanks for the explanation, really cleared it up.