Replies to post #273775 on Sulja Bros. Building Supplies, Ltd (SLJB)

[Risicare]

No they would be lower if anything, the efficiency in a larger operation and buying power are far stronger. That is why home depot and such are dominant and not a bunch of small operations. If you were right home depot would not exist. Sulja is closing stores not home depot LOL

[EarnestDD]

Here are some stats for Home Depot as per their 2006 10K filing.
Gross profit .......... 32.8%
Net income B4 taxes ... 10.3%
Net income after taxes ... 6.3%

I believe that Home Depot can certainly buy much better than Sulja.
I also beleive that they have many more stores and revenue dollars over which to spread their overhead.
IMO if Sulja makes 10% Net income after taxes they are doing extremely well for a little lumberyard in a depressed area.