We often see the book cover and see only one side of the coin or the business. The business model that you see may be actually losing money
1 The car dealership may barely make a profit on the unit they sell but they earn on:
1. Parts and lubricants
2. Servicing the unit
3. Insurance
4. Repairs
2. We on the other hand barely make 5% on the unit we sell but we make up for the services too. Our margin on service is 50-60%
3. A billiard hall may not make money on the pool tables but earn money on food and drinks, tournaments, memberships, events
4. As in Amazon they lose money on membership prime ($20 b) a year but make up for it in sales and video streaming
5. A computer shop makes money on peripherals and consumables
6. A gasoline station makes money on retail rentals rather than gasoline
7. A condo or subdivision makes more money on recurring income: H20 sewarage and building admin
8. A retail establishment makes money on rack rentals rather than the sales of good. Prime locations are paid by manufacturers more than margin of each product (Sales - cgs)
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