Matte Proof Lincoln question

Mike, I'm sorry, something is still ajar. Here, take these two earlier statements of yours. Let's "do the math" on them, together, see where we end up:

In the first statement, provided you didn't misspeak, you're saying COGS is 95% of sales, which would leave a GMOS of 5%. Now, take the second statement, a profit margin of 2%. Subtract the two, and get 3%. You're saying the store's operating expenses are only 3% of its sales? Do you see? A big store like that? I don't care what kind of sales volume, that's utterly incredulous! But that's how these statements add up. You see that, right?

 

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Mike
We have had 2 chains go out of business here recently, Abco and Bashas. All we have left is Albertsons, Kroger ( Frys ) and Safeway. My family buys monthly at Costco with weekly little trips to Frys.

Your 7% suprises me, I have heard it was much lower than that.

 

FWIW, I think you may be confusing terms. There's a difference between markup and margin. Supposing you bought a coin for $1 and sold it for $2. Your markup would be 100%; your margin would only be 50%.

 

You are correct

 

He may be talking about a gross as opposed to net figure, there. Still, from what I know, I agree, that's kind of high.

 

I'm thinking we are not all talking in the same terms.

For what it's worth Sams puts a 6 to 8% GP on most hardlines items.
They have the volume to do this and still have a net profit at the end.

 

That may be, Larry. I think Jack and I are just unaccustomed to seeing that that high. For a Walmart, though, I can swallow that, as a gross profit before taxes.

Just for the heck of it, I went to the Internet, and pulled up this little number on Whole Foods Market. These are more in line with the gross and net profit numbers I'm accustomed to seeing. They're for Q2 (Apr '09) and 2008, respectively:

Net profit margin 1.90%; 1.44%
Operating margin 3.75%; 2.97%

That linky-poo: http://www.google.com/finance?q=NASDAQ:WFMI.

 

eddie, not being an accountant, I will defer to those who do accounting. We are probably not speaking in exactly the same terms.

I will tell you, however, that Whole Foods has probably the largest margin in the grocery business.

It was just a point that I thought needed clarification. The grocery business is a place where you have to do an inordinate volume in order to stay profitable. Economies of scale are what keep these companies in business.

I have also worked in other areas of retail from shoes to coins and I know that markup varies greatly. It just happens in the grocery business that on average it's much lower than anyone would expect and on balance those companies are far less profitable than anyone realizes.

 

Eddie, you posted this and now I'm not sure what you are posting.

 

Ask and ye shall receive, Larry. That 40% GM referred to the top-line margin. That is to say, Sales less Cost of Goods Sold equals Gross Margin. Express Gross Margin, now, as a percentage of Sales, and that's the 40%. Actually, between 35-40% would be more accurate for most big grocery retailers from what I know. I was rounding for purposes of replying to Boss, though. Now, that 7%, and that 6-8% you referenced, as well as those Whole Foods Market numbers I just referenced, are all off the bottom of the income statement. Those come in after all the operating expenses have been accounted for. Mike and I got to that point through a rather circuitous route. If you'll backtrack a little, I'm sure you'll see how that happened. Hey, FWIW.

 

Is this a MPL ???

Hello everyone, This is my first post at cointalk, and I think I found the right place to post my question. I got this 1910 wheatie as raw BU and now I beleive it to be a proof. It's got really bumpy surfaces and looks like some I have seen in the TPG holders. But I'm not quite sure. Plus it has a split in the rim I'm hoping was done at the mint when it was made so I don't think it's worth submitting for grading. Thanks

 

Is this a MPL ???

Here is the reverse I hope. I couldn't get it to load, so I cropped the pic and I think it will work now. Yes success, LOL Thanks again

 

ehh...looks polished IMO but idn, also mint damage adds value post mint damage takes away value... Proof is a strike, not a grade. The designation PL/DMPL is for morgan dollars with a cameo like appearance

 

Stormy, I can't tell for sure.
It has that "Crisp Luster" that MPL's have.
And it looks like one.
I am not an expert, but I know some knowledgeable people in this field will be here soon to answer your question!

 

Hi Stormy,

I am concerned also with the rough appearing rim of the obverse. Doug may be correct. But it is not a matte proof, as the rim doesn't have the flat obverse and reverse edges and perpendicular polished flat rim. Here are photos of my PCGS ( before submission) 1909 matte.

Jim

 

Fake? Now I'm sure I don't understand this. Can you go into a little detail on how you're arriving at that, Doug? What are you seeing that makes you say that?

 

I am curious about the test cut you mentioned.I have not heard of this before. Please elaborate for me.
Are you implying that fake coins have a weaker metal content ,so they can be scored more easily? thanks

 

Is this a MPL ???

Thanks all for your quick replies. I'm convinced it's a cast fake. I was blinded by the exceitment. I guess I need to invest in a microscope. The rim has grinding marks down by the split like on cast or pewter seams. Heres some close-up pics. I just took. In the split it is copper colored, so I wonder if they melted good cents or plumbing to make this. Thanks again