this post was submitted on 27 Mar 2024
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[–] snausagesinablanket@lemmy.world 10 points 6 months ago* (last edited 6 months ago) (2 children)

How do you lose money selling one hotdog for what a 10 pack of cheap hotdogs cost?

[–] SpaceMan9000@lemmy.world 15 points 6 months ago

Mostly man power and the power it takes to prepare the hot dog.

[–] Che_Donkey@lemmy.ml 11 points 6 months ago

It's not losing money, it's losing a percentage of profit.

Say 10 hot dogs cost 1 dollarydoo.

1 hot dog sells for 1 dollarydoo that's a 10% food cost.

Enter bullshit inflation, hot dogs now cost 2 dollarydoos, so each one sold at 1 dollarydoo is now at 20% food cost.

that 10% comes out of profit margin unless your labor & fixed costs are 0.