Originally Posted by
golfisforfun
I am basing my statements on about 20+ years of wholesale/retail experience, selling to the largest chains in Canada, selling to the smallest stores in Canada, being a buyer etc etc...
The mark ups you suggest are not LARGE profit margins. As soon as they start discounting they reach a point where they are no longer making profits. Do you think a store selling clubs at 20% off is actually making a profit? Yes, they may make some money above the cost they paid, but that money goes to cover all their operating expenses.
Yes, purchasing costs improve (discounts) with volume but only to a certain point.
As you said above, a company that is struggling should do more to stimulate sales... BUT NOT AT A LOSS!!!
They need to sell more goods and services at full value to finally start making a profit.
Do people think GT and other retailers are on this earth to sell products to all of us at a loss?