Another DUmp economics major flunks the class

[tuolumnejim]

Do these morons ever have a clue?  If you could only make 15-20% profit why would you even be in business?

Link

Rage for Order (809 posts)      Fri May-02-08 01:17 AM
Original message
How Much Profit Is Too Much Profit?
 Edited on Fri May-02-08 01:18 AM by Rage for Order
As a general question, how much profit, as a percentage of sales, is acceptable before a corporation is considered to be acting in too greedy a manner? Is the cut-off 3%, 5% 10%, 20%? At what point do you, personally, consider a company to be making too much money?

I tend to think something in the range of 10% - 15% is reasonable. Of course, this number won't be static from year to year. Early in a company's life cycle, during periods of rapid growth and innovation, the profit margin could be much higher or lower, but once the company matures and earnings grow at a steady, predictable rate, I think a healthy company is one that earns a profit of roughly 10% - 15% of gross revenues. What say you?
 

[Lord Undies]

I guess this means the DUmpmonkey thinks the oil companies are good corporate citizens.  The oil companies make 6-8%. 

Of course, the DUmpmonkeys discussing economics is serious humor.  Their blanket statements and dumb assumptions are high slapstick comedy.

I'd love to be a mole right now and ask the little goon to explain how his little profit formula works if we compare a company that sells grand pianos to a company that sells discount toilet paper.   

[Carl]

A typical DUmmy post that shows how hopelessly devoid of any practical knowledge of the world they are.

What profit margin a company needs to have to exist is determined by the expenses they incur which is directly affected by the locale they are in,the regulations and taxes they face and the product they sell.

There is simply no way for one to divine what that figure is and then apply it as universal.

undergroundpanther  (1000+ posts)         Thu May-01-08 10:16 PM
Response to Original message
10. I think
   Profit the concept should be eliminated from all exchange.. Profit is destructive and it fosters greed and it creates great income disparity when rich piggies go hog wild for it. Profit carries the seed of ruin and does alot to create poverty. Destroy profit.

There are far saner and fair ways to run an economy.

One of the principles of the Gift Economy is that the gift must always move (each time we receive, we must pay it forward). A second principle is that in the Gift Economy we are agents, not (passive) consumers -- and what we give is generally what we have some mastery over, something we do well. Market Economy fans work hard to undermine these principles: The 'value' of every exchange, they say (usually some product in return for money, a surrogate for 'equivalent' goods or services) must be provided back to the giver, rather than forward to someone else. And the act of consumption is advertised as a pleasure in and of itself, a reward for previous personal sacrifice (unpleasant work), which imposes no obligation or responsibility on the consumer (or on the producer, for that matter).

It is hard to overcome the constant propaganda barrage of the Market Economy, whose adherents invest billions of dollars in their 'commercial messages' and take up between 10% (some radio stations) and 75% (many magazines) of the total 'information bandwidth' of the media -- a cost we 'passive consumers' of course pay back to them in the final cost of the product.

Let's not kid ourselves: This is war. File-sharing is just the tip of the iceberg in the battle between advocates of the Gift Economy and the Market Economy. Believers in the Market Economy see everything as property, and the use of any property without payment as theft. They are using absurdly anti-innovative patent law, armies of lawyers and their control of major political parties to try to crush every aspect of the Gift Economy.

http://blogs.salon.com/0002007/2005/07/31.html


**** THE MARKET!! To HELL with Profits! We do not need it.

Does this person walk the street among us or are they locked up where they belong?

undergroundpanther  (1000+ posts)         Fri May-02-08 08:45 PM
Response to Reply #31
34. I don't get paid for it
   but I do psych activism,I do newsletters, I do art,I give it away,I write and I even share my house.Yes my roommates pay rent it is low because it is their portion of the bills and their share of the household stuff we all use like TP,dish detergent etc.A small part of my money and theirs gets put away in a kitty for house repairs because we all use this house. I don't profit from this, why? Because I'm not a selfish pig or a greedy **** that's why.I couldn't live with myself if I got something for nothing,because I have standards I hold myself to.I don't have that nauseating entitlement delusion that profit seeker's have.I share what I have because it is there because I want to.And my kind of sharing ethics will far outlast profit driven greed if that greed does not destroy the planet first..

No explanation given where she (?) gets the money that is being spent.
Any guesses?

[jtyangel]

So their solution is to take the rest in taxes or just swoop in on the stockholder's return on investment? Something tells me they see earnings on the book that are 'retained' and they see a fat pile of unused cash...what a bunch of braniacs over there I suppose the actual owners of the company ie the stockholders have no claims either...the lazy asshats who actually 'need' the money trump the people who actually invested in the damn thing...same for those who extended cash to the organization.  I can't read crap like this on a Friday night...it's just gross.

[tuolumnejim]

A typical DUmmy post that shows how hopelessly devoid of any practical knowledge of the world they are.

What profit margin a company needs to have to exist is determined by the expenses they incur which is directly affected by the locale they are in,the regulations and taxes they face and the product they sell.

There is simply no way for one to divine what that figure is and then apply it as universal.

undergroundpanther  (1000+ posts)         Thu May-01-08 10:16 PM
Response to Original message
10. I think
   Profit the concept should be eliminated from all exchange.. Profit is destructive and it fosters greed and it creates great income disparity when rich piggies go hog wild for it. Profit carries the seed of ruin and does alot to create poverty. Destroy profit.

There are far saner and fair ways to run an economy.

One of the principles of the Gift Economy is that the gift must always move (each time we receive, we must pay it forward). A second principle is that in the Gift Economy we are agents, not (passive) consumers -- and what we give is generally what we have some mastery over, something we do well. Market Economy fans work hard to undermine these principles: The 'value' of every exchange, they say (usually some product in return for money, a surrogate for 'equivalent' goods or services) must be provided back to the giver, rather than forward to someone else. And the act of consumption is advertised as a pleasure in and of itself, a reward for previous personal sacrifice (unpleasant work), which imposes no obligation or responsibility on the consumer (or on the producer, for that matter).

It is hard to overcome the constant propaganda barrage of the Market Economy, whose adherents invest billions of dollars in their 'commercial messages' and take up between 10% (some radio stations) and 75% (many magazines) of the total 'information bandwidth' of the media -- a cost we 'passive consumers' of course pay back to them in the final cost of the product.

Let's not kid ourselves: This is war. File-sharing is just the tip of the iceberg in the battle between advocates of the Gift Economy and the Market Economy. Believers in the Market Economy see everything as property, and the use of any property without payment as theft. They are using absurdly anti-innovative patent law, armies of lawyers and their control of major political parties to try to crush every aspect of the Gift Economy.

http://blogs.salon.com/0002007/2005/07/31.html


**** THE MARKET!! To HELL with Profits! We do not need it.

Does this person walk the street among us or are they locked up where they belong?

undergroundpanther  (1000+ posts)         Fri May-02-08 08:45 PM
Response to Reply #31
34. I don't get paid for it
   but I do psych activism,I do newsletters, I do art,I give it away,I write and I even share my house.Yes my roommates pay rent it is low because it is their portion of the bills and their share of the household stuff we all use like TP,dish detergent etc.A small part of my money and theirs gets put away in a kitty for house repairs because we all use this house. I don't profit from this, why? Because I'm not a selfish pig or a greedy **** that's why.I couldn't live with myself if I got something for nothing,because I have standards I hold myself to.I don't have that nauseating entitlement delusion that profit seeker's have.I share what I have because it is there because I want to.And my kind of sharing ethics will far outlast profit driven greed if that greed does not destroy the planet first..

No explanation given where she (?) gets the money that is being spent.
Any guesses?

I always thought UP used a litter box. 

[Chris_]

That kind of stupidity should be lethal.

[ScubaGuy]

Hannah Bell  (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      Sat May-03-08 03:45 AM
Response to Original message
64. shouldn't you know what profit is before you decide how much
   
is optimal?

where does profit come from?

if it's what remains after you pay the cost of labor (salaries), materials, depreciation & any other associated costs of production, what is it?

if labor costs $1 & materials cost $1, how do they combine to equal a product worth $3, i.e. that produces $1 of profit?

i've always wondered where profit comes from. it seems to be a pink elephant - something that logically can't exist.

and if labor gets $1 & suppliers of materials get $1, how do they buy back the entire supply of product that costs $3? seems some of the product would always remain unsold.

Can someone really be that stupid?

alfredo  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      Fri May-02-08 11:41 PM
Response to Reply #33
38. Something as unimportant as football has rules.
   
There's just enough rules to make it work well. The superior team will win even with rules that don't allow cheating. The capitalist want to do away with the rules against cheating, because they want to win big, they want to win by any means. And to top it off, they want the rules to apply to the other team but not them.

The only way the capitalist will play fair is if you force them to play fair.

CasualWatcher9  (228 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      Sat May-03-08 01:44 AM
Response to Reply #38
43. so, do these football rules restrict how many points a team can score?
   
really?

how does that work?

Batgirl 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    Sat May-03-08 01:53 AM
Response to Reply #43
45. among other things
   


http://en.wikipedia.org/wiki/American_football_rules

CasualWatcher9 (228 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    Sat May-03-08 01:57 AM
Response to Reply #45
46. help me. i don't see it from your vague reference... n/t.
   

Batgirl 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    Sat May-03-08 01:59 AM
Response to Reply #46
47. it's apparent from reading the many rules of football
   
in response to your previous question, that yes, of course, those rules do ultimately restrict how many points a team can score.
[/QUOTE]

 

Batgirl  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      Sat May-03-08 02:02 AM
Response to Reply #47
48. I suspect however that given the quickness of your second question
   
that you didn't actually read all of those rules. Instead you expect to be spoonfed all of my extensive football knowledge gleaned from the 5 seconds I spent at the Wikipedia.

CasualWatcher9  (228 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      Sat May-03-08 02:06 AM
Response to Reply #47
49. um, no...
   
the rules declare how many points can be achieved in any particular action.

but ultimately you can score as many points as you can. no cap on points. none at all.


this football rules analogy... not a good one...

Batgirl  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      Sat May-03-08 02:10 AM
Response to Reply #49
50. well, I would have to disagree with you on that one
   
for instance, I am pretty sure it would be against the rules to fly across the field with one of those rocket accelerators strapped to your back in order to score a touchdown. Otherwise someone would have tried it by now and then become the top football point-scoring person, without steroids.

No need to apologize for doubting me. Next time try pulling yourself up by your own bootstraps to research these things yourself.

CasualWatcher9  (228 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      Sat May-03-08 02:24 AM
Response to Reply #50
55. wow. earth to batgirl, i was asking a legitimate question...
   
i'll go real simple here. i'll speak in small words and use simple sentences so you can follow.

it was stated "something as unimportant as football has rules". yes, football does have rules.

my question was "do these football rules restrict how many points a team can score?" remember this now in the context of this thread "how much profit is too much".

your wiki link was nice. it explained if you do this in football, you score this many points. if you you that, you score that many points.

now, again, back to the original question...

and think about this before you answer. think... remember the context of this thread and really think...

"do these football rules restrict how many points a team can score?"

Batgirl  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      Sat May-03-08 02:33 AM
Response to Reply #55
56. I like how you do that "small words/simple sentences" thing
   
it's like your signature move or something, very cute.

However I'm not sure what the disconnect is here. I feel the concept of rules, by the very fact that they restrict how a game is played, as well as spelling out specific penalties for rule violations, has a direct and indisputable impact on how many points are scored by the participants.

That's about all for now, I'm outta here. You have to understand, I do have a life. This deep-conditioning hair treatment isn't going to apply itself.

[/QUOTE]

[DumbAss Tanker]

To be fair it all depends on the scale of operations.  A 10-15% profit margin for a family business or Subchapter S corporation would be a disaster, for Exxon-Mobil it would be a stunning windfall.  I doubt the DUmmies are capable of understanding the difference,

[jtyangel]

Does Batgirl really think corporations aren't currently under any 'rules'(we call them regulations in the pesky business world, batgirl)? What about economic 'rules' that already play roles in supply and demand and determine cost, supply of materials/labor, competition(ooh, bad word at DU), whether disposable income is available or not to spend, etc etc.

Something tells me these geniuses would also be terribly pissed when all these businesses picked up operations and left the country or mass laid off people when their '10-15%' of profit rules went into effect. Not to mention DAT's point which if you read into it basically would stifle competition and encourage their dreaded 'big' business more since that's the only ones that will survive in their '10-15%' of profits world.

[USA4ME]

undergroundpanther

A small part of my money and theirs gets put away in a kitty...

 

After I catch my breath, I'll read the rest.

BTW DUmmies, I don't go to work everyday in order to break even like this Gift Economy non-sense that's mentioned.  You want to do that, go find your own little plot of land somewhere on the planet and go at it.


.

[Chris_]

To be fair it all depends on the scale of operations.  A 10-15% profit margin for a family business or Subchapter S corporation would be a disaster, for Exxon-Mobil it would be a stunning windfall.  I doubt the DUmmies are capable of understanding the difference,

From my experience, the profit margin in the restaurant industry is usually 5-10%.  Look at the NYSE... most publicly-traded restaurant stocks usually aren't more than $20 a share... even McDonalds and Burger King, and there's thousands of those.  If you find one for more than that, that restaurant is doing very well. 

[SSG Snuggle Bunny]

Hannah Bell  (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      Sat May-03-08 03:45 AM
Response to Original message
64. shouldn't you know what profit is before you decide how much
   
is optimal?

where does profit come from?

if it's what remains after you pay the cost of labor (salaries), materials, depreciation & any other associated costs of production, what is it?

if labor costs $1 & materials cost $1, how do they combine to equal a product worth $3, i.e. that produces $1 of profit?

i've always wondered where profit comes from. it seems to be a pink elephant - something that logically can't exist.

and if labor gets $1 & suppliers of materials get $1, how do they buy back the entire supply of product that costs $3? seems some of the product would always remain unsold.

Dear Clueless Twit Still Allowed to Vote and Breed (for now),

You say profit is a fairy tale, but what about the fairy tales of labor and materials?

Who decides what the worker's time and effort is worth?

Who decides what the materials cost?

ANSWERS: The worker seeking a PROFIT for his time and effort.

The supply vendor seeking a PROFIT for his product (and workers).

[BlueStateSaint]

undergroundpanther

A small part of my money and theirs gets put away in a kitty...

 

After I catch my breath, I'll read the rest.

BTW DUmmies, I don't go to work everyday in order to break even like this Gift Economy non-sense that's mentioned.  You want to do that, go find your own little plot of land somewhere on the planet and go at it.


.

I saw that, too.  My question is this:  Is UP the "kitty" that things get put away in?  If so, maybe they could put some Drano in that kitty.

[dutch508]

...I don't get paid for it but I do psych activism...

Not sure what teh UP means by this...does she/he/it mean she gets locked away alot?

[DumbAss Tanker]

Hannah Bell  (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      Sat May-03-08 03:45 AM
Response to Original message
64. shouldn't you know what profit is before you decide how much
   
is optimal?

where does profit come from?

if it's what remains after you pay the cost of labor (salaries), materials, depreciation & any other associated costs of production, what is it?

if labor costs $1 & materials cost $1, how do they combine to equal a product worth $3, i.e. that produces $1 of profit?

i've always wondered where profit comes from. it seems to be a pink elephant - something that logically can't exist.

and if labor gets $1 & suppliers of materials get $1, how do they buy back the entire supply of product that costs $3? seems some of the product would always remain unsold.

Does "The whole is greater than the sum of its parts" sound familiar, Hannah?  The differences are scarcity, specialization, and scale - i.e. you will not be able to obtain the $1 worth of tangible inputs for $1 yourself, you do not have the technical knowledge or expertise to use it with only $1 worth of your own time being consumed, and therefore it is easily worth the $3 to you.  And one other thing, don't forget to ask the customers if they want fries with their sandwich next time.

They truly do need keepers.

[DixieBelle]

Oh my. How do they manage to walk upright and log on to the computer?

Here idjits, this is a list of profit margins - chew on it and then decide who to focus your outrage on

[Chris_]

Oh my. How do they manage to walk upright and log on to the computer?

Here idjits, this is a list of profit margins - chew on it and then decide who to focus your outrage on

Big Pharma!

No wonder I can't get my Zoloft for less than $20.00!  Those guys don't deserve to exist!

(/need I say DUmmie mode?)

[ReardenSteel]

That kind of stupidity should be lethal.

A brief study of history is proof enough that that kind of stupidity is worse than lethal.   

[Rebel]

Reminds me of a post I made at my sports board:

http://ncaabbs.com/showthread.php?tid=297262&pid=3291031#pid3291031