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To: Alan Smithee who wrote (5746)9/7/2001 12:32:20 AM
From: HG  Respond to of 10077
 
Yep, what you're saying is true. But unless they have statistical and emperical data to prove percentages, I'd say that funding of the interest from their own coffers is a risky proposition. But of course a +/- a small percentage may be guess work.

Thats how most of these retail outlets can afford to sell at low margins. A lot depends on their relationships with their suppliers. I have seen 90 and 120 days credtlines in some parts of the world ! I doubt if suppliers in US can afford those kind of timelines though...

Thats where the "We shall not be undersold" comes from. Even if they sell at zero profit, they still end up earning interest, which can still work towards offsetting the fixed costs....just like the airlines industry operates...

I'd be interested in seeing Martha Stewart's terms with K-Mart.

I edited my post and added some stuff at the bottom of the post.