JimmyDanger said:
You said something I disagreed with - (You can't make a profit off high end TV's) - I disagreed. I didn't realise only Kowen was allowed to disagree with. And while I agree with the shrinking middle class = bad/shrinking economy - in regards to your "ratio" economics/Tv rationale - there's a reason rich people generally remain rich, and that is because they don't spend 20 x on consumer goods as people earning 20 x less than them. They don't buy 20 litres of milk for your one (but they will generally buy a more "premium, high end milk", and maybe 1 or 2 times as much) or a 20k TV as opposed to a 1k TV. I have no doubt that someone on Cribs may spend 80k on "entertainment" (80k would be a cheap party hosting cost for catering/DJ's/Bands/Hosts/Decorations) - to match your %8. And while you pay off your 200k house (hypothetical example) - he (the 1 mill salary guy) is likely to not be paying off 3 or 4- 1 mill properties, rather than paying off 30 * 200k houses (unless he's a property investor by trade). While Joe Citizen may have $50 left off his $400 per week at the end of the week (or say 1/8 - 12.5%) while Pinky McBling may well have 15,000 (or %75) of his 20k per week (can very depending on excesses) and still maintain a lifestyle well above the basic cost of living. Some more basic economics - economy of scale doesn't necessarily translate from macro to micro. 2.5 % profit can be an amazingly good return for a multibillion dollar corporation primarily concerned with developing and selling goods (with the exception of some "boom" companies )- but disaster for a small to medium sized business. You'll find the further you go up the scale in terms of gross turnover the smaller the actual margins need to be. Why supermarkets can afford to sell much, much cheaper than corner stores (aside from their obvious group buying power). |
well now you've gone and done that all in vain. Don't say I didn't warn you, but I definitely did not say that you couldn't make a profit on high end tvs.
If you want to make an argument about something, address exactly what point I made, because I can't tell. I didn't say 2.5% was bad. Kowen did, to which I pointed out that samsung was 1.7 and some other company (LG?) was 1.3.