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A comment on Steve Jobs: Let's force Amazon to use our payment system (2010). Parent comment

Re:Steve Jobs: Let's force Amazon to use our payment system ... by doctor_eval on Thursday September 16, 2021 @06:13AM (#28549885)
No, I’m talking about groceries. Food, stuff you need to live. Gross margins in Australia for the top two chains were about 28% last I looked.
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Re:Steve Jobs: Let's force Amazon to use our payment system ... by mthoms on Thursday September 16, 2021 @01:12PM (#28554408)
Profit margin is more useful metric to determine if you're being gouged -

Grocery stores: < 3% Profit margin, huge inventory risk.

App store: > 70% profit margin, zero inventory risk.

Put another way: If grocery stores cut gross margin by a couple points they'd be out of business. They are basically charging the absolute bare minimum they need to make a profit. The reason? Competition.

Apple could drop their App Store gross margin by 50% and still have one of the most lucrative operations in the world.

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