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Non-Cattle Specific Topics
Coffee Shop
Lumber
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<blockquote data-quote="greybeard" data-source="post: 1520660" data-attributes="member: 18945"><p>Simple. Their profit margin hasn't changed one bit. If they were making $ before the wholesale price increase, and increased their resale price accordingly, they're making exactly the same profit as before. </p><p></p><p>If you were buying apples for 3 cents each, then selling apples for a nickle each, you were making 2 cents per apple profit. If your supplier raised the price you pay for apples to 8 cents each, and you raise your price to customers a dime per apple, you are still making 2 cents profit per apple.</p><p></p><p>People that need lumber are like people that need food (or anything else) . They are going to pay the price for it, regardless of whether it rises or drops..or remains the same.</p></blockquote><p></p>
[QUOTE="greybeard, post: 1520660, member: 18945"] Simple. Their profit margin hasn't changed one bit. If they were making $ before the wholesale price increase, and increased their resale price accordingly, they're making exactly the same profit as before. If you were buying apples for 3 cents each, then selling apples for a nickle each, you were making 2 cents per apple profit. If your supplier raised the price you pay for apples to 8 cents each, and you raise your price to customers a dime per apple, you are still making 2 cents profit per apple. People that need lumber are like people that need food (or anything else) . They are going to pay the price for it, regardless of whether it rises or drops..or remains the same. [/QUOTE]
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