please explain how a gallon of milk at the grocery store is 3.50 and the
same gallon of milk is 1.99 at the quik-e-mart. also how is it that a half
rack of Corona is 16.00 at the grocery store and its 12.00 at the
quick-e-mart. also a pack of Marlboro cigarettes is 5.40 and at the
quick-e-mart they are 4.60 at the quick-e-mart. Doesnt sound to me like a 5%
profit.

Sounds to me like the grocery store is exploiting the fact that everything
is all in one place.

Chris DeLong
Fine Tuning
206.427.4777
www.finetuningperformance.com
Seattle, WA USA

>From: Norm - RoweBoat <norm@ROWEBOAT.COM>
>Reply-To: Norm - RoweBoat <norm@ROWEBOAT.COM>
>To: vanagon@GERRY.VANAGON.COM
>Subject: Re: 2.1 hose price deal
>Date: Sat, 24 Apr 2004 10:08:48 -0700
>
>Some items in grocery stores are marked up at a higher rate than others.
>From what I understand (and never having been in the grocery business, I
>can't speak from first-hand knowledge) the overall profit margin is about
>5%
>and their costs (rent, insurance, wages, advertising, etc.) get covered by
>that.  Which means high sales volume is critical.
>
>Plus, at a car dealership, it isn't the car sales that really makes the
>money and keeps the place in business.  The Parts Dept. helps some, but the
>main profit center is the Service Dept.  The Service Dept. is what usually
>makes or breaks a dealership.  And if your dealership acts as a district or
>regional parts supplier (which we weren't, it was just a small town
>dealership) and offer some of your commercial customers a 35% discount
>(keeping 5% for yourself), you're still making a little bit off of the
>discounted parts and your standard 40% off of the bulk of your parts sales
>(parts used by the Service Dept. on customers' vehicles and
>across-the-counter sales) so you're still showing a good profit margin.
>
>Norm
>
>-----Original Message-----
>Date:    Fri, 23 Apr 2004 22:06:25 -0700
>From:    Karl Wolz <wolzphoto@WORLDNET.ATT.NET>
>Subject: Re: 2.1 hose price deal NVC
>
>That margin is after paying fro rent, insurance, wages, advertising, etc.
>Not direct, item-by-item mark-up.
>
>Karl Wolz
>  >
>  > I used to work in the Parts Dept. at an Olds/Cadillac, GMC Truck
>dealership.  > Our prices were across the board 60% cost, 40% markup.  So
>even if we sold  > to someone at a 35% discount, we still had a %5 margin.
>Not much, but most  > grocery stores operate on a 5% average profit margin.
> >  > Norm

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