[mlsu]

I know that there's the "5x rule" -- BOM cost is supposed to be 5x less than retail.

Is there such a rule for fulfillment and delivery?

Of course, 56% seems monstrously high to me, but then again, so did 5x BOM cost before I had that explained.

[22289d]

Food cost in restaurants in similarly shocking. They operate on metrics similar to BOM. Might shock you to find out how much that $40 pizza cost in dough, sauce, cheese and toppings. (Probably just a couple bucks).

[papertokyo]

And yet a 10% profit margin in the restaurant business is considered high.