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The Retail "Half-Off" Mystery Explained In Two Simple Bullet Points
The two bullet points below from a just released update by Yum Brands explain all you need to know about the "magic" of half-off retail discounts.
- YUM BRANDS- IN CHINA, LIMITED-TIME "HALF PRICED" BUCKET PROMOTION YIELDED AN ABOUT 16% INCREASE IN KFC SAME-STORE SALES FOR FIRST 10 DAYS OF NOVEMBER
- YUM BRANDS - IN CHINA, KFC SAME-STORE SALES WERE DOWN APPROXIMATELY 8% FOR THE REMAINDER OF NOVEMBER
So, sales were up 16% for the 10 days in which margins were crushed, then down 8% for the remaining 20 regular margin days. And the net impact on the bottom line is...
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LOL.
At least their sales were up. /sarcasm
"Sure we lose money on each order -- but we really make up for it in volume!"
..... is that you, Bezos ?
Rainman - exactly, start delivering supplies to YUM stores by drone. Cut out transportation costs.
Thanks for reminding me drones don't count under transportation/energy costs. I forgot that electricity is free in the future.
Have a drum stick and your brain starts click'n !!
http://www.youtube.com/watch?v=yd4XaLwXpLQ
Grasshopper - it is the price / cost differential.... and I just assumed that my comment didn't require a sarc tag.
The Colonel's secret recipe for.... PROFIT*
*non-GAAP
I guess it IS possible that while the chicken was half-off, they doubled their prices on everything else. I'm speaking in a sarcastic tone if you couldn't tell.
And here's more government intervention to fuck things up...
http://www.myfoxny.com/story/24111247/german-plan-to-ban-flat-rate-offer...
See, now Barry Sweato and Joie "the Plugs" Bidet couldn't get laid for the same price in Berlin.
Can you guess why?
PS Did you all know that Germans consume more bananas per capita than any other peoples?
Wanna know why? ;) I reckon it has to do with this:
Before and during WWII Germany imported bananas from it's colony Cameroon at very low cost (they were recognized as healthy), without greedy corporations as go-between.
After the war they were exempt of import duty and thus very cheap. I recall from my youth that bananas would "always" cost 1 DM/kilogram, for many years - iirc about the same price as oranges and (locally grown) apples.
If you are really *that* curious, you might find the following interesting (text both in German and in English)
http://d-nb.info/972352945/34
Or maybe Germans are simply monkees.
100 Euro for unlimited sex?
How much is that in bit coin?
Channel stuffing or china stuffing
27 heroism potions, please.
http://www.giantitp.com/comics/oots0135.html
Wait, are you saying you can't sell below production cost, but 'make it up on volume'?
Jeff Bezos does. So go figure.
Never mind the quality, feel the width.
Boom!
Same sales, lower margins = Losing.
Them chicken legs will be gettin' skinnier and skinnier
yeah, but they make up for it with extra msg and other GMO goodness...
Chinee chicks do have awfully skinny legs, no?
Hmm, you be da judge !!!
http://25.media.tumblr.com/tumblr_lqpwf6IQ3X1qefm89o1_500.jpg
Ugh. I still don't know why I clicked your link. Decent upper body + world's strongest man lower body still equals a huge turnoff for me. And that's excluding that dirty crapper in the background.
A demand pull forward in micro.
What we have done here is pull about 3 decades worth of demand forward.
Ok so... with some basic (very) calculations - if YUM does + 16% @ 50% off, then the real price is around 66% of current retail price, while if they do - 8% at regular price (100%) then that real price is at 92%. Combining the two real price scenarios [(66+92)/2] = 79%. So the real pricing has to fall 21% to maintain year on year sales.
YUM is the leader in China so other chains probably must fall moar ! So if China is overpriced by a minimum of 21%, what is the US?
Don't worry POMO is $4B to $5B tomorrow.... but methinks that the banks are going to start hoarding cash rather than buying stawks or bonds (who the fuck would be buying bonds now.. except the fabian felons at the Fed?).
Markets sell off hard going into close tomorrow... methinks.
Yes banks have been hoarding cash... but also giving a bid to stawks.. leverage for thie rown books and lend out at leverage to hedge funds. My point is that they will hoard more and ergo pull in leverage ... got it ?
"Worshipping low inflation"... are you a dumkoff ? The deflation in the general proce level was what was needed in 2007 / 08. Yes it would have been painful for a year or two, but the response by the Fed / ECB/ BOJ has created the liquidity trap which will be forced upon the economy. It is not a question of worshipping low inflation / deflation, it will be the natural law reactio to the fabian socialists at the Fed/ECB, et al.
Square the blame on where it belongs... not on your sycophantic definition of "capitalism".
does this mean new all-time-high tomorrow?
Yum brands, masters of food debasement phood counterfeiting.
My lil bro pointed out my chicken nuggett was actually more "chicken slime*" than actual chicken, chicken nuggets are actually only 50% chicken meat, the other 50% chicken stuff* that's before battering, spices, and grease.
They taste good so who cares. I really do like McNuggets. Crispy good, white looking meat good, some kinda slime good.
Be sure to take a picture of it. Then compare it to the pitcure of the slime your surgeon removes from your body 10 or 20 years from now.
It might help in the lawsuit.
In China it's actually "canine slime".
David C. Novak is indeed a scam artist . Who would have thought?
Don't worry about Novak, he got plenty chikkken.
Bullish!
Off Topic, the Whiners circuit
Big defense to Congress: End budget cutshttp://money.cnn.com/2013/12/02/news/economy/defense-sequester/index.htm...
The surgery was a success even that the patient didn't survive.
"And the net impact on the bottom line is..." - Who cares about the bottom line? Next month they're goign to start delivery those promotional buckets by DRONES! People will start ordering just to see the damn cyborgs in action!
Where are the Cyber Monday sales figures?
Forty two. The answer is forty two
The great experiment is coming to the end stage.
People are always motivated by sales. However when you have inflation that greatly increases beyond wage growth for decades the population starts to only react to sales because they could not really afford it otherwise. Additionally the internet has spread this process quicker as its easier to bargain shop.
Henry Ford had it right when he paid his workers more so they could afford to buy the product they were selling. The reverse is true today. Its all about wage arbitrage and outsourcing to maximize the bottom line. Without cheap financing (credit cards, loans) the whole house of cards falls apart as the end consumer cannot afford the product. Whole global corporations are built upon this and will fail without it. The only reason it has lasted so long is through the exploitation of wages in one country after another. We are reaching the climax of that - there are very few places left to pull that off on a global scale. I do not think we make it to the point where it ends - the house will collapse prior to that.
"And the net impact on the bottom line is"...
Wait, don't tell me, ... Winner, winner, chicken dinner?
agreed...add tax arbitrage to the scam. Just ask GOOG, AAPL, and MSFT how it works....