Viewing post #1064713 by Horntoad

Cinta said:

Retailers never lose. I was in the business office of a major retailer. I would bet the plants that they sell at regular price for 20 they purchased at 3.00. Even selling them for 50% there is no revenue lost. Tax right off and profit of the plants they sold at original price puts them ahead.

You would lose that bet.I have worked "Big Box" retail for nearly 40 years and their gross margin is no where near your example. A retailer would have to make a 50% gross margin to break even on a plant marked down 50%. Your example would the retailer a 85% gross, but in reality it is closer to 40% on average.