News for hackers. Stuff that matters.
Re:The fraying of the U.S. global currency reserve system by sudosysgen on Monday December 14, 2020 @04:55AM (#25415195)
This isn't a correct way of looking at it. You're assuming that the sum total of profit generated is in that one manufacturer. It isn't the case. You have subcontractors that also make an additional ten percent, then materials coming from a supplier that takes another ten percent, which comes from raw material suppliers that make yet another 10%, and then you're going to have consultants in R&D and marketing that might make even more than 10%, and so on. So it really can end up quite a bit higher than that.
Re:The fraying of the U.S. global currency reserve system by CountSessine on Monday December 14, 2020 @01:45PM (#25421402)
Possibly - although if your suppliers have operating margins that are as wide as yours, or wider, it might actually make sense to just buy them and take those earnings for yourself. I wonder how many of Ford's suppliers have an operating margin as wide as Ford's 5%?