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Joined 3 years ago
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Cake day: July 15th, 2023

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  • The ‘extra’ money comes from jacking up the prices in other items in the same store, like candy and sodas. And from not spending as much money on other stuff like marketing and bonuses.

    There are two sides to the profit equation: expenses and revenue.

    In order for a store to make more profit, they can either increase their revenue (by raising prices, for example), or they can decrease their expenses (by laying people off, buying from cheaper suppliers, or paying executives less, for example).

    So these stores are lowering prices on some items. And making it up by some combination of RAISING prices on other items, and LOWERING their costs in other areas like marketing, executive bonuses, etc.

    Hope that helps.