Originally posted by: MikeyIs4Dcats
Wal-Mart's 2004 profits were $9 BILLION. McDonald's profits were $2.28 BILLION. Hardly near zip point sh!t.
Throw out a big number to try to make a point without putting that number in context.
In the three months ended October 31st the company reported the following information:
Revenues were 69.2billion
Costs of sales was 52.5billion
Operating costs and SG&A were 12.9billion
Interest, taxes and misc Income was -1.5billion
Net income was 2.286billion
Without getting to in depth, labor for running the stores is all in the SG&A number. If you doubled the average wallmart Salary there would be operating losses of 10 billion dollars per quarter and Wallmart would be competely out of business in less than a month.
Wallmart's margin runs at 6-7%. This is miniscule, most small business operate on 20-50% margins. Wallmarts greatest expense is labor, even a VERY small adjustment in salarys will wipe out their profit completely and put them in negative territory.
