One of the BW Old Guard
Date registered: Aug 2004
Vehicle: 1988 560Sl
Location: Fort Payne, Al
Mentioned: 3 Post(s)
Quoted: 242 Post(s)
10 cents on the Dollar
10% profit. Is it worth the liabilities, hassles, potential risks, etc to operate a business on 10% profit(lets assume profit, here, means profit, not some mythical suppressed number). In layman's terms, for every dollar of revenue taken in, $.90 goes back out in costs of doing business. Another way of looking at it is, The business owner gets to keep $.10 of every dollar revenue (now, before you business majors and economists jump in, ignore depreciation, depletion, etc for a moment). Obviously, the business owner beter have a high volume of sales to afford to stay in business, otherwise it would be better to work for someone else and let them assume the risks, liabilities, etc.
Why this rambling? Well, if reported figures are correct, then Exxon's profit margin this last year was about 10%. Sure, it is billions of dollars, but its still 10% (tell the shareholders that). Sure, thats a better return than the stock market averages, and it does seem exorbitant, but in reality, is it all that out of perspective?
Man, I wish it were that simple. I have operated a business on a loss for years at a time, banking all the depreciation/depletion dollars instead of re-investing, until a year comes around where profits are good (usually single digit). Sooner or later, the piper comes a collectin'... I can't imagine this same scenario with stock holders to answer too...
It is all too easy to say, "the gov is ...", or "Exxon is...", but one has to remember, There ARE individuals out there. A gov or business is just that, a collection of individuals, not some faceless, generic, amorphous entity...
What's that...? Already? Well, its time for my little white pill, again. CIAO!
RM Smith www.rmsmithco.com
Where is it again that we are going... And why are we in a handbasket?