How Much Do They Profit From That?

By Editorial Staff in Facts On 22nd April 2016
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#1 Are You Getting Your Money's Worth

Everybody knows that the price of living in today's world is outrageous. Everyone has complained at one point or another about how much the price of certain things has risen. But have you ever asked yourself how much money the company you are buying from is actually making on what you purchased? Some are greedy and make a fortune, but then there are those who depend solely on selling by volume or by trying to earn your customer loyalty. Check out just how much some of these companies are earning as profit for each item that you buy.

#2 Little Ceasar's Hot-N-Ready Pizza

They are selling this cheese or pepperoni pizza that is could in advance and sitting in a warmer for five bucks. They are only making about .90 on each pizza. Clearly they are hoping to upsell by getting you to purchase wings or breadsticks.

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#3 McDonald's Double Cheeseburger

Believe it or not, McDonald's is only making about six cents on each of these dollar value menu items. The theory is that they are gaining your loyalty as a customer and you'll keep coming back for more. Besides, you are going to need a drink and french fries with that burger. They make a profit of .41 on a large order of fries, and the soda is only costing them around 4 cents.

#4 Subway Five Dollar Footlong

They don't offer this any longer, but it's not because they weren't making a profit. They got greedy and shortened the foot long to 10 inches and now sell a half of that for $4.00. The profit of $1.20 is pretty good in the food business, especially when they are selling hundreds of thousands each day.

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#5 iPhone 6 (Without A Contract)

So Apple is selling this without a contract for approximately, depending on where you're located or buying, for about $850.00. They are reeling in over $600.00 on each and every phone they sell. That's greed. Last reports show that the iPhone 6 has been sold 132 MILLION times since it's launch and over 13 million in just the first three days of being released. The price is going down as newer models will rolling out soon, so they can reap even more money from tech-savvy customers. Your best bet is to get one on sale before the next model hits the market.

*This is not including the 6s or the 6sPlus, which cost the company only a few dollars more to manufacturer but sell for about $100-200 more than the 6 model.

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#6 Play Station 4

Sony has sold more than 38.9 million units of its PlayStation 4 already, a lowball price average of $400.00. They are only making a profit of $43.00 on each console sold. Don't' feel so sad for them. That's over 1.6 BILLION in profits for SONY.

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#7 Microsoft's Xbox One

They've sold over 20 million units to date with an average sale tag of $350.00. The company makes a whopping $112. on each unit sold. Again, that's nothing to sneeze at when you're selling that many units. $2 billion in profits would make any company happy.

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#8 Amazon Kindle (The Regular Version)

Amazon is different. They sell the original Kindle reader at the price of $79.00 per unit. They make absolutely ZILCH in profits on each sale. (Note this is not the newer Kindle versions like the Fire, where they make over $100 in profits). Why do they sell them so low? They want everyone to buy a Kindle so they can return and order downloadable books from the Kindle store. That's where they make the money. If everyone get's a Kindle reader, the more money they make from book downloads. Very clever.

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#9 Do These Profits Sound Fair To You?

It's costly for manufacturers to make and produce high-quality products, and we've come to expect nothing but the best. Some companies are rolling in the dough while other are barely scraping by. While it looks like McDonald's and Amazon are making nothing on their items, they are making a fortune in the results of the initial sales. After reading this article you can see that there is money being made by these big name companies. Lot's of it.