The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: deeno who wrote (36405)	7/29/2005 9:30:01 AM
From: Mike Johnston	Read Replies (1) of 306849

Deeno and you thought that this discussion is over .... I have know Idea. Just sticking up for pizza operators everywhere ;^D LOL I am the one that is sticking up for pizza operators. I have been worried that their margins are down and suggested that they raise their prices, while you have been saying that they make enough money already. I have stated a simple economic truth and i stand by it." Actually you used it as an analogy. And concluded that you dont see how they can stay in business.... I chose to say that your analogy was poor at best (actually wrong) and that you don't know anything about the Pizza business (or the auto business either). My analogy (even if poor) to General Motors was not "the economic truth" i was referring to. The economic truth is this: When costs increase while the price of final product stays the same, gross margin goes down. Of course this assumes that productivity does not increase and that the quality of the product is not compromised. Since pizza is made by hand and you cannot increase the speed of cooking, productivity pretty much stays the same, so it is not a factor.

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