Replies to post #39056 on Market 99 Ltd (fka MNTY)

[Pastor Phil]

your dangerous, lol

[The Original dpb5!]

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.

[Pastor Phil]

Retail is simple. It's not rocket science or mining where there might be some huge discovery. Either you sell enough stuff to pay for expenses or you don't.
I like the way you put that and agree 100%

[stayfocused]

Excellent post, much appreciated.