Tuesday, August 15, 2017 3:33:51 AM
Let's see how much profit they made selling 7,232,640 medium baby diapers. 7,232,640 x .10 = $723,264.... Now let's see how much they paid for 7,232,640 medium diapers. 7,232,640 x .05 = $361,632... Let's see if we are kind of close to that $1.1 million.... 723,264 + 361,632 = 1,084,896... Close enough.
The margins from maker to seller is really cheap if you ask me. Only .05 cents for making the diapers, and .15 cents for selling them. .10 cent profit.
So, if Bemax Inc makes a .10 cent profit off each diaper. The $36.50 medium pack for 240 diapers the profit off the sale of $36.50 is $24. 240 diapers x .10 = $24.
The diaper costs I didn't get off Walmart, I got it off of the Bemax inc webstore. Walmart is selling the medium pack higher for $39.99 instead of $36.50. Even better..
https://www.bemaxinc.com/webstore/
So, getting to my point if Bemax Inc makes a $24 profit off selling just one of those medium packs, and she decided to sell on WalMarts webstore. Walmart has a 15% referral fee and warehousing fee. I did a short research on the warehousing fees and I found this. New fees ranging from 1% on the value of goods held in inventory up to 10% for food suppliers on the value of goods shipped to new stores are being assessed to 10,000 of the chain’s 11,000 vendors. So, let's say all the fees come down to 26%, 26% of $24 equals $6.24.
Amazon fees are about 1/3 of the sale price of the item, that is 33%. So, I'm pretty sure 26% of fees by Walmart is pretty accurate. $24 - $6.24 = $17.76. That is $17.76 in profit for selling on WalMarts web store. But Walmart is selling the medium pack (240 diapers) for $39.99 better than $36.50. The profit would be even higher at $22.23...
The profit is there, and its higher than you think.
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