Midway prices being inflated.

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  • lazarus

    Ultimate Member
    Jun 23, 2015
    13,724
    If you are the best and most desired in your industry then 80% gross margins are not out of the ordinary and not "a bit much" in the least. The gross margins support continued development of products and experimenting with new technologies. The profits for the company usually ran about 10%.

    I think the thing is it just depends so massively on the market and product within the market.

    Margin also depends on producer or seller. Producer margins include cost of production (raw materials, energy and employee costs). Would not include fixed capital costs, marketing, non-production employee costs, etc.

    A retailer is just their purchase cost be sales prices. It still depends on the retail market and product. Higher end products usually aren’t very high margin. Auto dealerships generally run 8-13% margin.

    Higher end electronics are typically in the 15-30% range.

    Liquor store runs 40-50% margins.

    Of course once you get outside direct retail it can vary wildly. Especially when you are talking producers.

    A restaurant might run 30% margins (not gross) on a meal. The beverage might be 80%
     

    TheOriginalMexicanBob

    Ultimate Member
    Jul 2, 2017
    32,842
    Sun City West, AZ
    A restaurant I was once manager of ran 70%-80% gross profits and netted roughly 28%...but different type of restaurants operate differently. A McDonald's...if well run...operates off a 20% net...they make their money from volume sales...not so much markup. More traditional sit-down restaurants have higher labor costs due to how they operate and require higher markups.
     

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