Green PolkaDot, Inc. (GPDB)

[Rawnoc]

OK, yeah, selling at below cost is a great business model. Go GPDB. You lose on every sale, but you make up for it in volume.

joenatural wins hands down -- 50% gross profit margins in today's PR.

Good grief that was a fun exchange to read, but what you failed to realize is that there are other costs in cost of goods sold that can take on a fixed-like nature including allocation of overhead.

The electric bill and the secretary salary in the warehouse, for example, are fixed cost of goods sold whether GPDB sells 1 item or 10,000 items in a month.

Most likely there are is a lot of salaried labor in that COGS figure involved in the shipping of merchandise, taking orders, etc. When sales are slow these salaried employees are twiddling their thumbs and earn the same paycheck as when things are busy. It's like the kitchen staff at a restaurant -- their wages stay the same whether the place is busy or not and is a "fixed" COGS.

Hope that helps. ;)

Today's PR:

The blended gross margin on sales exceeds 50%.
GPDB will likely earn profit on operations for the first time in its history