The Conservative Cave
Current Events => The DUmpster => Topic started by: ScubaGuy on March 18, 2010, 01:15:13 PM
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For everyone who thought this mornings thread was the ultimate in stupid.
DUmb DUmb DUmb (http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7947220)
Uncle Joe Donating Member (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Thu Mar-18-10 01:17 PM
Original message
Poll question: If you could sell a product and were limited to a 15% profit, would you sell it for
Poll result (13 votes)
$100? (2 votes, 15%) Vote
$500? (0 votes, 0%) Vote
$1000? (0 votes, 0%) Vote
Infinity plus a cherry on top? (7 votes, 54%) Vote
Other (4 votes, 31%) Vote
Once again the DUmmies show their total ignorance of what profit is.
rocktivity Donating Member (1000+ posts) Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Thu Mar-18-10 01:32 PM
Response to Original message
14. Presuming that I'm not limited to what I could charge for it
Edited on Thu Mar-18-10 01:33 PM by rocktivity
I'd sell it for as much I could legally convince someone to pay.
:eyes:
rocktivity
tridim Donating Member (1000+ posts) Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Thu Mar-18-10 01:33 PM
Response to Original message
15. If you wanted to sell a new/improved product in a newly expanded market would you..
Edited on Thu Mar-18-10 01:41 PM by tridim
Sell your product for as much as possible and risk losing customers to your competition?
Or would you set the price as low as possible to get more of the new market?
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Uncle Joe Donating Member (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Thu Mar-18-10 01:17 PM
Original message
Poll question: If you could sell a product and were limited to a 15% profit, would you sell it for
Poll result (13 votes)
$100? (2 votes, 15%) Vote
$500? (0 votes, 0%) Vote
$1000? (0 votes, 0%) Vote
Infinity plus a cherry on top? (7 votes, 54%) Vote
Other (4 votes, 31%) Vote
What the hell? What does this mean?! Are they actually discussing this? It is like that stupid thing about; I the whole bottle.
Good night, they're idiots.
KC
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That has got to be one of the dumbest things I have ever seen. How do you dollar figures on an unknown product that have such a wide range. They obviously have no clue as to how economics works either.
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What a stupid question, if you were limited to 15% profit you couldn't give a dollar amount you would sell it for because he hasn't given you info for the cost of the product. Also in some instances, your profit margin can't be 15% because the market wont support it.....like health insurance, which according to last year made an average profit of 3.3%
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LOL Here's a really fun exchange!
Nicholas D Wolfwood (1000+ posts)
Thu Mar-18-10 01:20 PM
Response to Original message
1. Re-read your question, then tell me if that causes any logical problems for you. (nt)
Uncle Joe (1000+ posts)
Thu Mar-18-10 01:22 PM
Response to Reply #1
3. I haven't had much coffee yet please explain the breakdown in logic.
Nicholas D Wolfwood (1000+ posts)
Thu Mar-18-10 01:26 PM
Response to Reply #3
7. You said there's a 15% cap in profits.
Therefore, the only way you CAN price your product is 15% higher than the cost of producing that product.
Let's use math here. Say your product cost you an even $100 per unit to produce. If you are capped at a 15% profit margin, the highest amount you can ever charge for that product would be $115. (100*1.15=115)
Thus, you answered your own question.
slampoet (1000+ posts)
Thu Mar-18-10 01:41 PM
Response to Reply #7
25. BINGO!
Edited on Thu Mar-18-10 01:42 PM by slampoet
Finally a DUer with a grasp of middle school math. (that and the others on this thread.)
Now, I'm no math genius BUT when I want to figure profit margins I don't figure it like the above DUmmie just did.
Using the DUmmies figure of $100 .... If I wanted a 15% profit then I would figure it like this;
$100/.85 = $117.65
That way when you take out my 15% you get back to your $100 (cost to manufacture)
$117.65 x .15 = $17.65 (my profit)
$117.65 - $17.65 = $100 (cost to manufacture my product)
***Sorry about the long explanation but if any DUmmies are lurking I wanted THEM to be able to understand***
This is why DUmmies don't run businesses.
:-)
KC
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15%???
Companies would kill for that.
On edit, What Texacon said!
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15%???
Companies would kill for that.
Uhm ... these are DUmmies we're talking about here. You have to remember that in their world all the evil corporations make an 85% profit and THAT is why they can afford to eat all the extra taxes Congress needs to pass on them.
KC
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Companies wish they could get 15%. In their dreams.
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That thread just keeps getting better!
Oregone (1000+ posts)
Thu Mar-18-10 03:22 PM
Response to Reply #61
68. It "caps" what they can spend which is not on medical loss
So that includes profits and operational overhead.
Of course they can control operational overhead (and this will make them become more efficient). But these companies also control medical loss by negotiating rates and adjusting the throttle on how and what types of care they ration. They control the entire big picture, and its not difficult for them to increase medical loss so they are allowed more money they for profit and operations.
Oregone (1000+ posts)
Thu Mar-18-10 03:22 PM
Response to Reply #61
69. dupe
Edited on Thu Mar-18-10 03:22 PM by Oregone
Nicholas D Wolfwood (1000+ posts)
Thu Mar-18-10 02:11 PM
Response to Reply #48
54. Someone tell "ignored" that I'm not interested, please. (nt)
Oregone (1000+ posts)
Thu Mar-18-10 02:12 PM
Response to Reply #54
56. If you ignore people due to fear of an intellectual debate, what makes your view objective?
Edited on Thu Mar-18-10 02:16 PM by Oregone
Or even reasoned? To look an an issue with binocular vision seems to sell yourself short. How can you convince anyone of the authority and accuracy of your view if you refuse to debate it?
If you have reasoned arguments, you should welcome them to be challenged.
Bwahahahahahahahahahahaha It actually posted that at the DUmp!
KC
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Uncle Joe Donating Member (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Thu Mar-18-10 01:17 PM
Original message
Poll question: If you could sell a product and were limited to a 15% profit, would you sell it for
I wonder if DUmbass Josef realizes just how many business owners would sacrifice DUmp monkeys to Aztec gods just to see a 15% profit for one year. The health insurance industry has an average net profit of 3%. "Big Oil" rakes in an "obscene" 5% - 8% on average - and pays about 3 times that amount in taxes to the gub'mint every year. (Even when the eeeeeeeeevil BFEE was in power, lurkers.) When I worked at Boeing, the profit on every plane we kicked out the door was about 1.5% of the total pricetag, after all the sensitivity training and team building meetings and the rest of that horsecrap on company time was paid for. And I could go on and on with the examples.
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I urge you all, please don't row over. There's nothing to make you laugh, only groan and rub your temples. My God.
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What a stupid question, if you were limited to 15% profit you couldn't give a dollar amount you would sell it for because he hasn't given you info for the cost of the product. Also in some instances, your profit margin can't be 15% because the market wont support it.....like health insurance, which according to last year made an average profit of 3.3%
Yep! Just like the eeeeeevil oil companies, who make a whopping 6% and have to put up with moonbat lunatics who think they are making a 200% profit!
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No idea how many competitors there are (Although treating it like the 15% is guaranteed indicates 'None,' notwithstanding the therefore-irrelevant talk about cutting the price to get competitive superiority later) or how many of them you can sell, or a ballpark market price, makes the whole thing meaningless. A DUmmie economic treatise meaningless?!? Yeah, I know, what surprise.
I once knew a guy who among other things sold buns to fast food restaurants, about 40 years ago in the town where I went to high school. One day he was chatting with me and my ne'er-do-well buds and decided to teach us an economics lesson. He told us he made 33% profit on an item every time he sold it but would go broke if he had to depend on it alone. He was talking about the buns, and explained that each one cost him $.02 each, and he got $.03 each for them from BK and other customers. He then noted that if that was all he had to rely on, he'd go bankrupt, because he couldn't move enough product to make a living from the existing demand he served to ever survive on it.
Profit margin alone is not enough information to make sound decisions...and as many have noted already, 15% is beyond the wildest dreams of vendors in most industries.
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Also, a cap of 15% would be irrelevant to the pricing question. Profit is maximized at the price point of the intersection of the supply and demand curves. You always try to price it there - the point where people are willing and able to pay for every unit you produce at that price
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Uncle Joe
Poll question: If you could sell a product and were limited to a 15% profit, would you sell it for ($X)?
I know what he's trying to say. He's trying to say that's it's better to sell 1000 units for $230 (at a cost of $200) than for $115 (at a cost of $100) because you make $30 a pop instead of $15. He's trying to prove that insurance companies, if their profit is capped, will artificially inflate the cost of their insurance in order to make more money. It's a poor illustration and doesn't fit at all what will happen.
The price of insurance will increase because you're adding people in with pre-existing conditions that can't afford to pay the premium, so I'll get spread out to the rest of us. This is the same problem the primitives have complained about, that the insured end up paying for the uninsured anyway. So we've come back to full circle, but we've lost more of our freedom and some dolts will "feel" better. Whoop-de-doo.
.
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40 years ago, recapping tires around here was big time. They would pay $1 to $1.25 each for a recappable carcus(used tire). I had a distance cousin in Texas that had to get rid of all the used tires for Sears, Pennys and few more stores. These were excellent tires for recapping because in Texas the summer heat was to much for them to run recapped tires. He said he would load and ship me as many used tires as I could handle for 5 cent each. I lived about 1200 miles from him and even at 95+ cent per tire profit unbelieveably I couldn't scratch it out on paper how to make a profit. If it won't work on paper, it won't work in reality.
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I urge you all, please don't row over. There's nothing to make you laugh, only groan and rub your temples. My God.
Do not worry about them Karen, do not worry!
Black hole stupidity as that which is the default in DUmmy Land, will eventually burn their flatulent asses to the ground.
They will suffer due to their own stupidity, we see it all the time. Relax and rejoice with the knowledge of their forthcoming self-administered angst and anger!
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Do not worry about them Karen, do not worry!
Black hole stupidity as that which is the default in DUmmy Land, will eventually burn their flatulent asses to the ground.
They will suffer due to their own stupidity, we see it all the time. Relax and rejoice with the knowledge of their forthcoming self-administered angst and anger!
My only complaint is how long it is taking them! Ah well, I need the entertainment!
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Oregone
Response to Reply #13
17. Insurance companies dictate, through a process of rate negotiation, how much to pay per service
You getting a bit of the picture here now?
Insurance companies, along with a standing anti-trust exemption (that is suppossed to be repealed), are being faced with contained overhead. But on the flip side, they control their medical loss directly, so they can easily operate within these ratios and still profit as much as before.
Really dummie? Do they also control how ill a person gets and quantity of promised services under a government forced insurance policy? The stupid is strong at the dump, especially in threads regarding economics.