Random Arguments & Strawmen #15

I said 60-70% profit margin on products. A $10 action figured probably cost $3-4 to make and package. A $10 burger probably cost the same to make. The later I'm telling you from personal experience in the food industry.

Advertisement and shipping is another beast all together.

BUT THEIR NECESSITIES!

Truth be told I have no *** idea how to fix our system because we have to fix the people first, and good *** luck.

Look Kingnobody is probably the only one here qualified to talk about taxes and no one pays attention to him !

So back to childish name calling and blaming liberals !

Minimum wage workers. And I'm going by your definition.

But let's just pretend you didn't say minimum wage workers don't deserve to live comfortable lives and as such totally don't fall in the loser category to make yourself look nicer.

lol

The way some CEOs get paid, you'd think that running a successful business is hard or something.

It's a piece of cake! you should all go run out and start a business of your own!

Fine I'll go out and start my own website dedicated to FFXI and it won't have any boring discussions of taxes !

To expand: There are two types of taxation when it comes to investment income: Ordinary and Capital.

Ordinary income from investment comes mainly from interest and foreign (non-qualified) stock dividends. Some types of property sold are taxed as ordinary, such as when a person sells a machine for $5,000, and over the life of that machine has depreciated (or claimed as an expense on previous year's worth of tax returns) $10,000, and the value when first purchased was $10,000, then that $5,000 is considered ordinary since the tax value of that machine was $0 ($10,000 purchase less $10,000 expenses over years = $0).

Capital income from investment comes mainly from qualified stock dividends, which, according to the US Tax Code, are domestic stocks and certain foreign stocks (mainly, Canada and Mexico stocks (Thanks NAFTA!)). Some types of property sold are taxed as capital, such as, using the example above, except there was no depreciation expenses over the years. The tax value is $10,000 ($10,000 purchase price), and the person ends up having a capital loss because they sold it at a loss.

There are also some rules associated with treating ordinary losses vs. capital losses, but that's enough tax lessons for one day.

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If I may interject something on this particular note:

People on Yelp are *** idiotic.

"Food is too expensive here."

Mother ***, you want a cheap burger, go to McDonald's and get what you deserve. If you can't tell the difference between a burger made by a trained artisan (which is what a real chef is) using high quality ingredients and real cooking methods compared to a teenager/part-timer throwing pink slime in a steamer, you don't deserve to be posting to Yelp because you don't understand page the *** one of quality food.

"I pay taxes, I'm qualified to talk about them."

-- everyone ever, probably.

There are a few places that have stupidly low profit margins. Or sell certain dishes at a loss, but is made up by much more popular dishes in that 60-70 margin area.

And some really high end places put out dishes at a loss so they can show off high end ingredients. Spago Beverly Hills sells a white truffle pizza during white truffle season at a massive loss purely for prestige.

But good try Nik.

Acceptable attempt.

Remind me to bookmark this discussion when I open up a high end burger place. That sells white truffle cheeseburgers !

Talks to investors: You see Jimmy if we sell high end burgers to yuppie liberals in San Francisco we can't lose:

Jimmy: It's genius it's fabulous but we need a snooty name for the restaurant.

Me: Fromage de fantaisie

...that's not all involved in figuring profit margins...at all....

You have transportation of the products, the labor it takes to build the product, the purchase of the raw materials involved in making the products, certain taxes and tariffs for that product, etc.

Small companies may get away with a 50% profit margin, but that's because their output is so small. The bigger the company gets, the lower their margin is, but the more output they make, the bigger (value, not %) their bottom line is.

But you want to go into food industry? Fine:

McDonald's (Gross Profit Margin: 28%, Net Profit Margin: 2%)
...hell, there's not that many chains that isn't completely franchised out.

Either way, I highly doubt you understand what you are stating.

That's because they import actual truffles instead of bs'ing the customer with what may or may not be truffle oil.

To back your point though pasta for instance has a stupid high profit margin for restaurants especially if it's hand made at the location.

Don't worry when Trump is in office he will give all of you truffle oil so you feel special too !

The most expensive burger I've heard off sits at $777.

Wagyu beef, lobster, aged goat cheese, pancetta, foie gras, arugula and 100+ year old balsamic vinegar.

Unfortunately, they don't release their financials.

I have, in the past, worked on quite a few restaurants with their tax returns. Unfortunately, I cannot state their margins, but I can state that those restaurants don't have nearly as large of a profit margin as you state.

I'm sorry I cannot use examples for this, I can only state what is public information, not private. However, I do know you are wrong in every way, mainly because of your lack of understanding basic accounting principles.

Actually....

They went with "The Counter" and "Unami Burger"

Fancy for me when I use a napkin.

I'm purely talking about raw product costs to finished product costs.

A burger being sold for $10 is made up of $3-$4 in raw product.

The end.

Good, you identified one cost aspect that goes towards gross profit margin.

Product costs between 30-40%. You still need to add the following: Labor costs, machinery costs (in this case, depreciation of machinery, since almost all machines are not replaced every year), repair/maintenance costs, certain taxes associated with labor/machinery/R&M. There are other cost of goods sold expenses associated with restaurants, but those are a per-restaurant basis only.

All of those costs are associated with GPM. You cannot state that restaurants have a 60-70% gross profit margin and only look at one aspect of gross profit.

That's just using the basic 2-3x mark up formula all businesses use.

There's a reason for that........

Don't forget building costs such as rent/mortgage, utilities, and upkeep.
Advertising too if that is applicable.

I'd also imagine there's a fair bit of loss in the whole producing more product than you sell.

Which people having more money to spend on luxuries would probably offset.

Like during holiday sales.

Actually, that's considered "below the line" or operating costs.

Gross Profit is the money that is made just for creating something (be it a toy, a burger, or providing profession services to a 3rd party hack website, which, by the way, Rooks, here's my invoice for $5,000 for teaching and professional fees).

While equally important, GPM is the basis on seeing how well a product and/or company is doing (dependent on if the company sells more than one product or not).

Depending on the industry. Spoilage and/or inventory/warehousing costs take into place in that case.

That's why there are analysis done at the executive level to determine what the appropriate rates of production vs. the anticipated demand vs. raw material availability vs. economic strength of the environment vs. price levels vs. ability to market and shelve products.

It's a complete mess the larger the company is. That's why it takes teams of executives and managers to figure it out, and half the time they still get it wrong.