Saturday, August 30, 2014

Cost, Price and the Visa Card

When I mention a price or cost of an item without additional information,  I'll be referring to the retail cost,  what I actually paid. If I quote a wholesale price I will note it.  I'll try to remember to provide the source,  especially if the item is difficult to find. 

Since some items are sold in my restaurants I may walk you through cost calculations,  pricing decision-making,  stuff like that.  You'll see that some of what we sell doesn't cost much. Hopefully you'll understand that the big equation - - when at the end of the month we tally all of the expenses and set them aside the revenue - - still earns us less than ten cents on the dollar. 

There is no magic Visa Card that funds losses.  In other words,  the rare item we can sell at a high profit margin is offset by many that we cannot,  hopefully the overall result allows us to stay open and do it all again.

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