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A comment on It's not a crime if we do it with an app. Parent comment

Re:It's not a crime if we do it with an app by bschne on Sunday January 26, 2025 @06:20PM (#42835354)
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...

2. https://www.macrotrends.net/stocks/charts/WMT/walmart/profit...

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Re:It's not a crime if we do it with an app by lores on Monday January 27, 2025 @05:53AM (#42839616)
A 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?
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Re:It's not a crime if we do it with an app by bschne on Monday January 27, 2025 @06:06AM (#42839714)
Gross margins don‘t include executive pay on the cost side
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Re:It's not a crime if we do it with an app by lores on Monday January 27, 2025 @10:14AM (#42841936)
They include executive pay of all their suppliers :P
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