Posted on 12/26/2008 5:34:47 PM PST by An Old Man
Edited on 12/26/2008 5:35:48 PM PST by Admin Moderator. [history]
Price-slashing failed to rescue a bleak holiday season for beleaguered retailers, as sales plunged across most categories on shrinking consumer spending, according to new data released Thursday.
Despite a flurry of last-minute shoppers lured by the deep discounts, total retail sales, excluding automobiles, fell over the year-earlier period by 5.5% in November and 8% in December through Christmas Eve, according to MasterCard Inc.'s SpendingPulse unit.
(Excerpt) Read more at online.wsj.com ...
Very briefly. In 2005, I worked for Sears. In the early morning hours, I would change signs advertising 40% off of a ridiculous "nobody would pay that much" retail price, and put up signs offering 50% of that price. A few days later, I'd go out and replace the 40% signs. It occurred to me pretty quickly that if we got rid of my department, and all the signs and the flyers sent out in newspapers, we could just sell the crap for 60% off of that inflated retail price, and make more money in the process.
But no, Sears has to play some little mind game with the shopping public, to pretend that they're getting some fantastic deal. I guess I developed a bit of counter-contempt for retailers in the process.
It doesn't matter, in ten years, most of what you and I will buy in the non-perishable goods arena will likely be online. Even clothing.
“Considering most retailers bottom line is about 2-5% of sales, an 8% drop would wipe most out.”
Ah-—No! 5% of 8% is only .4%, and if they are working on a smaller margin, the differenc is even less. It only means there will be a smaller gross—the profit (percent-wise) on the gross will be the same, but the net profit will be smaller, but only by the percentage the gross is decreased.
No wonder B. Madoff was such a success—for a while.
Hank
what is the obsession with buying guns...didn’t you hear the Supreme Court ruled in favor of gun owners?
I live in Ohio...Walmart was not packed on 12-23...no one around here is shopping much.
There was a car ad on TV today that guaranteed financing for a car...and offered a free car if you could not get financed. If I wasn’t worried about unemployment, I’d head down there. My wife overheated the van and bent the head gasket (old car). It’s going to cost big bucks to fix this.
Bags are packed. The Left has traditionally used social unrest and social protest to win political victories. We need to consider the same tactics.
Just think about what would happen if "we" all stopped making mortgage payments, car payment s and credit card payments for 6 months. Think about this VERY carefully. We have huge leverage over the system.
If we are going to drop out, we might as well consider taking them down with us. Just some ideas for discussion, I'm not advocating any action here.
I suspect that a few people, very prominent people, have already set the machinery in motion to take them down. Keep your bags packed and be ready to move. You will know when it's time for action.
Read Heller.
Also, if nobody is planning to enforce the "natural born citizen" component, why should we believe any part of the Constitution is safe? We either live under the law or we don't. If we don't, then lots of folks want to be able to protect themselves.
Wow! Glad I don’t live in Latvia!
I did fifteen years ago. I owe no-one.
“”Just think about what would happen if “we” all stopped making mortgage payments, car payment s and credit card payments for 6 months.””
Wouldn’t we be thieves in that case, assuming the debts are legitimate?
Um. No. If your bottom line is 1 million out of revenue of $50 million. Subtract 8% of revenue = sales of $46 million. Your bottom line is now -3 million. Don’t ever run a business.
No-you couldn’t. The retailer I work for DID cut out all of the advertisements a few years back. There are a lot of costs associated with running a retailer that people never see unless you’ve been a store manager at least or even better work for corporate management (like I do). For example, credit card fees last year were half as much as our net profit—and we run a bottom line of almost 6% which is huge in our industry. If you want to see how profitable they are, you can always look at some of their info on a lot of finance websites. Most run in the 1-4% net margin range (after all expenses are paid).
I'm waiting for that zero tax for everyone earning under $200,000. After all, it was a promise, was it not? Think we should all go into our employers on Jan 2nd and fill out new W-4s claiming 10 exemptions? After all, I'm just SURE obambi will keep his word and give us all that tax cut.
Would you mind putting the artwork on the Internet? If you do, it will become an immediate hit!
Not thieves. Revolutionaries.
I didn't say we shouldn't pay our debts with interest. I only said it would be interesting to see what would happen as an act of social protest if we held back payments for 6 months to capture the attention of the government who thinks we smell too much to visit our own Capitol building.
“Um. No. If your bottom line is 1 million out of revenue of $50 million. Subtract 8% of revenue = sales of $46 million. Your bottom line is now -3 million. Don’t ever run a business.”
1 million is 2% of 50 million, so the margin is 2% of whatever revenue there is. If the revenue is 46 million, the bottom line is 2% of 46 million, or $920 thousand.
What you are saying is the cost of doing business is a constant $49 million, regardless of the revenue. If that’s how your business is run, it will not last long.
Hank
You pay property taxes?
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