XPost: rec.arts.sf.written, rec.arts.books   
   From: john@jfeldredge.com   
      
   On Sun, 18 Aug 2013 06:10:13 +1000, Rod Speed wrote:   
      
   > "The Horny Goat"  wrote in message   
   > news:g2tu095a7hmvcb2beqimp9l5gdloed85s6@4ax.com...   
   >> On Mon, 12 Aug 2013 13:23:24 +1000, "Rod Speed"   
   >>  wrote:   
   >>   
   >>>>> Now a merchant who doesn't cover all his costs is out of business so   
   >>>>> you know where those costs get passed along to.... in grocery stores   
   >>>>> they used to work on a 1-2% margin because they were getting 'the   
   >>>>> turns' but these days it's 7-8% mostly to cover card costs.   
   >>>   
   >>>> I don't know how much shop keepers get ripped off by the banks here,   
   >>>   
   >>>Its nothing like as high as that 7-8% here.   
   >>   
   >> Didn't say bank charges were that high. What I said is that groceries   
   >> have historically made it on 1-2%, but some of the affinity VISA/MC   
   >> cards have fees in the 4-6 range which is where that 7-8% number came   
   >> from.   
   >>   
   >> In other words, the bank is making more on groceries than the grocery   
   >> store itself is and by a considerable margin.   
   >   
   > I just don't believe that most grocerys have a 1-2% margin for the   
   > grocer.   
      
   I worked for a food broker for ten years.  The 1% to 2% margin is on   
   staples such as flour or sugar.  They serve more-or-less as loss leaders   
   for convenience foods, prepared food mixes, condiments, and the like,   
   which have a higher profit margin.   
      
   --   
   John F. Eldredge -- john@jfeldredge.com   
   "Darkness cannot drive out darkness; only light can do that.  Hate cannot   
   drive out hate; only love can do that." -- Dr. Martin Luther King, Jr.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)