My(simple) opinion on Oil Companies Record Profits
Ok here is my simple opinion on Record Profits for Oil companies. I by no means am a business genius or anything like that.
I work in a grocery store and we use a set gross profit percentage, i think its 33% but not sure. Anyhow the price of Oil continues to rise. at $138 a barrel, oil companies are paying $2.50 per gallon of oil + taxes+refining costs. If they are using a set gross profit percentage and the costs go up for their profit, of course their profits are going to rise.
Example: If a loaf of bread costs us $1 and we have a 10% Profit Margin, We sell that bread for $1.10. If the cost of bread rises to $1.50, in order to maintain our 10% profit margin, we would charge $1.65, making 5 cents more profit than before. Oil prices have risen to record levels, so will profits.
RE: My(simple) opinion on Oil Companies Record Profits
Quote:
ORIGINAL: AmateurHunter44857
Ok here is my simple opinion on Record Profits for Oil companies. I by no means am a business genius or anything like that.
I work in a grocery store and we use a set gross profit percentage, i think its 33% but not sure. Anyhow the price of Oil continues to rise. at $138 a barrel, oil companies are paying $2.50 per gallon of oil + taxes+refining costs. If they are using a set gross profit percentage and the costs go up for their profit, of course their profits are going to rise.
Example: If a loaf of bread costs us $1 and we have a 10% Profit Margin, We sell that bread for $1.10. If the cost of bread rises to $1.50, in order to maintain our 10% profit margin, we would charge $1.65, making 5 cents more profit than before. Oil prices have risen to record levels, so will profits.
Interesting take, IF the oil companies are working on a 'set gross profit percentage'.
That's an assumption on your part, albeit a reasonable one. I did not know it was an issue that
oil companies are making a profit on their products ? Are you suggesting government regulation
or a profit 'cap' on their products ?
RE: My(simple) opinion on Oil Companies Record Profits
The Democrat Party, being the Socialist scum that they are, have a plan for reducing prices (yeah, right...). One of their members let the cat out of the bag a couple days ago... Here is the illustrious Maxine Waters, caught on tape...
RE: My(simple) opinion on Oil Companies Record Profits
Quote:
ORIGINAL: ipscshooter
The Democrat Party, being the Socialist scum that they are, have a plan for reducing prices (yeah, right...). One of their members let the cat out of the bag a couple days ago... Here is the illustrious Maxine Waters, caught on tape...
These lowlifes don't just want to take over the entire medical industry in our country, they want to take over the oil companies, too.
Rush hit on this last week. It was good to see the video that wet along with her comment. It was a good find. I wish they showed Shell's CEO response.
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RE: My(simple) opinion on Oil Companies Record Profits
Quote:
ORIGINAL: bergall
Quote:
ORIGINAL: AmateurHunter44857
Ok here is my simple opinion on Record Profits for Oil companies. I by no means am a business genius or anything like that.
I work in a grocery store and we use a set gross profit percentage, i think its 33% but not sure. Anyhow the price of Oil continues to rise. at $138 a barrel, oil companies are paying $2.50 per gallon of oil + taxes+refining costs. If they are using a set gross profit percentage and the costs go up for their profit, of course their profits are going to rise.
Example: If a loaf of bread costs us $1 and we have a 10% Profit Margin, We sell that bread for $1.10. If the cost of bread rises to $1.50, in order to maintain our 10% profit margin, we would charge $1.65, making 5 cents more profit than before. Oil prices have risen to record levels, so will profits.
Interesting take, IF the oil companies are working on a 'set gross profit percentage'.
That's an assumption on your part, albeit a reasonable one. I did not know it was an issue that
oil companies are making a profit on their products ? Are you suggesting government regulation
or a profit 'cap' on their products ?
The reason i posted that is because of these people that think the Oil Companies are just robbing us blind and that they are making record profits and screwing us over. If they are using a set profit margin it only makes sense that when the prices rise to record levels, so will profits. Like i said i am no business genius or anything just offering my opinion on why these Oil Companies are making record profits and not screwing us.
RE: My(simple) opinion on Oil Companies Record Profits
Quote:
Example: If a loaf of bread costs us $1 and we have a 10% Profit Margin, We sell that bread for $1.10. If the cost of bread rises to $1.50, in order to maintain our 10% profit margin, we would charge $1.65, making 5 cents more profit than before. Oil prices have risen to record levels, so will profits.
Actually for a 10% margin, you would need to MARKUP that $1 bread to $1.11.
For 10% on the $1.50, the marked up price would be $1.67
To get a 10% margin, you need to divide cost by .9.
To get a 30% margin, you need to divide cost by .7. etc
Margin and markup are two different animals commonly confused - and a costly error.
RE: My(simple) opinion on Oil Companies Record Profits
Quote:
ORIGINAL: ipscshooter
The Democrat Party, being the Socialist scum that they are, have a plan for reducing prices (yeah, right...). One of their members let the cat out of the bag a couple days ago... Here is the illustrious Maxine Waters, caught on tape...
RE: My(simple) opinion on Oil Companies Record Profits
on one of those news shows, they said oils is making a 9-10% profit, agree with you on the record profits.
Though maybe since oil is so high that profit should drop to 8%.
They were talking about how to continue searching or alternatives etc....they need profits otherwise they're stuck with whats already been found and waiting for it to dry out.
I find it odd when people expect oil to not make a profit....this isnt socialism, its a private industry.....its american to sell yoru product for the highest price you canget for it.
RE: My(simple) opinion on Oil Companies Record Profits
Quote:
ORIGINAL: salukipv1
on one of those news shows, they said oils is making a 9-10% profit, agree with you on the record profits.
Though maybe since oil is so high that profit should drop to 8%.
They were talking about how to continue searching or alternatives etc....they need profits otherwise they're stuck with whats already been found and waiting for it to dry out.
I find it odd when people expect oil to not make a profit....this isn't socialism, its a private industry.....its american to sell yoru product for the highest price you canget for it.
Exactly,
A lot of people don't understand that if a new refinery is to be built, or new oil exploration is to be done it takes an oil company to do it. The government rakes in a bigger % on a gallon of gas and the government does not have to risk a dime.
All the oil companies ask is to spend some of those profitsand drill in new places.
C. Davis
__________________ Am I greedy because I don't want to give you what is mine?
or
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My(simple) opinion on Oil Companies Record Profits
