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To: central_va

Can you provide their average Gross Margin and what percentage of that is labor. Or is that a stupid question?


28 posted on 10/14/2015 5:56:51 PM PDT by stillfree? (Trump/Cruz)
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To: stillfree?
Can you provide their average Gross Margin and what percentage of that is labor. Or is that a stupid question?

You have to use common sense and deduce it your self. See corporate America doesn't want you to know things like that; it's secret. Labor and unit costs are controversial for some reason.....

But in this case let's deduce it ourselves. Ok a truck arrives at you local Wally World stuffed full of things not made in America.

Ok a gomer( we'll call our stocker gomer) gets a pallet jack and puts it under the pallet full of blenders and toasters ( all made in China off course). He pumps it up and starts his journey to Wally World's appliance row. His trip takes him 5 minutes to navigate around the fatsos shopping there.

Now the gomer unloads the pallet, it takes him 10 minutes to unload say 50 items. Ok that is all the "value added" from labor. The customer provides the labor on the way out, they pick it up put it in the cart and push it themselves to the ever so efficient and happy check out artists.

So lets say our stocker makes $10/hour. He spent 15 minutes stocking 50 items, or $2.50/50 works out to $.05 per item. Big deal. Lower his wage to $5.00 /hour and you reduce labor per item by 2.5 cents, Oh yeah big time savings on a 40 dollar toaster!

37 posted on 10/14/2015 6:14:48 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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