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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: DrGrabow who wrote (38845)	3/7/2002 9:31:52 PM
From: retiredcfo	Read Replies (1) \| Respond to of 99280

BTW - this wasn't to extend the argument on domestic content. It is a global market for a lot of stuff. The big builders - Pulte, U.S. Home, Calton, Toll Bros, K&B, etc. buy direct. The smaller builders buy through some form of distribution. Fashion retail has a huge initial markup; cost is 40-50% of selling price. However, if wrong styles bought, markdowns can be even more - see the GAP numbers. Grocery products have far lower: cost is 80-85% of selling price. The grocery guys want you to buy in the bakery, the deli and the florist departments where costs are 50% of retail again. Deduct labor, facilities, utilities etc. and the grocery guys get to a net after tax of 2-3%. Not a fun business, which is reflected in PE's. good trading to all gm