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Post# of 76909
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The Original dpb5!

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Re: opeum post# 39056

Thursday, 11/22/2007 11:21:15 PM

Thursday, November 22, 2007 11:21:15 PM

Post# of 76909
If I may add opeum...

The margins that you show for the BIG PLAYERS... Family Dollar, Dollar General and Dollar Tree INCLUDE the very cost of SHIPPING products to the stores.

In this fashion, instead of it being Cost of Goods, it is called LANDED Cost of Goods (which means AFTER freight charges!)

Generally, in retail, it costs 8% of sales to pay the freight costs incurred to ship product in.

So, if Market 99 is not including the freight costs, then they will more likely achieve a 34% Gross Margin rather than the 42% that they are currently stating.

Hope this helps.



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