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by chad_strategic 3744 days ago
Accounting 101: (No matter if it is 1900, 1950, 1999, or 2015)

Revenue -Cost of Goods (food, in this case) = Gross Profit

Gross Profit -Sales & General, Administrative = Net profit

(SG&A = office space, Webdev, logistics, etc...)

I'm sorry, but anything else is just plan BS.

1 comments

Half-kidding, but where is "growth" in your calculations? A big reason why companies discount their "fixed costs" (e.g. full-time employees' salaries, rent, etc) is because if they can get a marginal profit on their goods, then it's a matter of "making it up in volume". A company can still be losing a tremendous amount of money but have a bright future (I think this is what Amazon did for years): if you're making $0.50 per item, but have $1b of overhead costs, it very well might be possible to get to a profit, it just means you have to move a LOT of items.
Yes, I suspect Amazon has razor thin margins, so does Walmart and Supermarkets, but they can make it up on volume.

SpoonRocket... I suspect there is limited volume based on their market. (not everybody want's food delivered, people still like to go out every once and a while...)