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> 100% profit margin [..] That’s not how these things work

• PunchyHamster 1mo ago
  that means $5 part is sold for $10. It's exactly how that kind of thing works
  • BenjiWiebe 1mo ago
    That's actually a 50% profit margin. Also known as a 50% markup, even though you marked the price up by 100%.
    • antonvs 1mo ago
      It's a 50% profit margin because the profit ($5) is 50% of the selling price. It's a 100% markup because the selling price is 100% more than the cost. Some people might call it a 50% markup, but that's purely a deceptive tactic, or just ignorance.
      • BenjiWiebe 27d ago
        It's the industry-standard (for grocery stores at least) term; doesn't mean it isn't wrong, but it's the way they use it. Could be deceptive, could be ignorance, but it's multiple unrelated grocery store owners, talking to me as a seller.
• niccl 1mo ago
  No. I got from the article that he's saying that the purchase is sunk cost, so any sale is 100% profit. So it's correct