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14 results for “low margin business”
...low margin business. If you set up your your structure correctly and you're buying correctly and your ads business is working correctly, and now we're launching a whole new host of businesses that think they're gonna improve our margin structure more
6:00 / 7:21
from transcript6:00 – 7:21
...after a low gross margin percent business, you just need a ton of volume. So you need high repeatability. And the notion of gross margin is a strange thing. If you look at DoorDash from a GMV standpoint, then their gross margin is really low. But if
31:20 / 32:30
from transcript31:20 – 32:30
...Their gross margins are 98%. Unreal. There are no variable costs in this business. There are no cost of goods sold. Unreal. It's crazy. So I think with 50% net income margins, this is literally the most profitable large scale company in the world. I
2:50:15 / 2:51:17
from transcript2:50:15 – 2:51:17
...All the cash flow can't go into customer acquisition and customer success or wherever it's been going that's caused a lot of these businesses that have grown real fast to not grow margins or even have margins shrink over time. So getting back to and
13:56 / 15:20
from transcript13:56 – 15:20
...has much lower margins than their competitors, but the volume that they drive and the actual dollars end up being worth it. Yeah. Even though Costco is only an 11% gross margin business and only ever will be at 11% gross margin business, it's still a
1:47:13 / 1:48:18
from transcript1:47:13 – 1:48:18
All the cash flow can't go into customer acquisition and customer success or wherever it's been going that's caused a lot of these businesses that have grown real fast to not grow margins or even have margins shrink over time. So getting back to and
49:17 / 50:48
from transcript49:17 – 50:48
...five years, the businesses average low 20 to 23, 24% margins. So very attractive margins. Is that operating? Yeah. Operating margins. Gross sits around 40%, 41%. So what's quite interesting is if you actually compare their margins to some of their li
35:16 / 36:19
from transcript35:16 – 36:19
All the cash flow can't go into customer acquisition and customer success or wherever it's been going that's caused a lot of these businesses that have grown real fast to not grow margins or even have margins shrink over time. So getting back to and
14:26 / 16:15
from transcript14:26 – 16:15
...matter? I think the same business principles that have applied to businesses for the last three decades in technology are the same business principles that matter today. Margin matters, but it's nuanced. I would add an addendum to that. Margin matter
33:00 / 34:06
from transcript33:00 – 34:06
...It'll probably be around there. It could go up a little higher, but that's with their generous offering back. You're talking about a very profitable, rapidly growing business. And the question one really needs to ask is, who's gonna stop that happeni
36:44 / 37:47
from transcript36:44 – 37:47
...were low margin early. Those are the best software platform businesses in the world, Snowflake and Databricks. Very low margin early. A lot of people passed on those early rounds because they're, oh, in SaaS, you have to have 80% gross margin. Look a
33:42 / 35:03
from transcript33:42 – 35:03
...businesses to value on either of two metrics, so we do focus really on both and see how both interact with each other. At the same time, we do not feel yet confident enough to assume a significant capital return of the excess capital. So, we let it b
35:57 / 37:05
from transcript35:57 – 37:05
...dollars? Because of the cost of shipping, what how do your margin dollars play out? It's a little better on ecommerce right now Okay. Kind of what you're saying. Our margin, when you go to retailer, the distributor takes a fee. Right. Everyone gets t
13:28 / 14:31
from transcript13:28 – 14:31
...lowest gross margin percentage category, but our highest gross margin dollar category. These baskets are much higher with alcohol baskets than nonalcohol baskets. So you rather lose a few percentage points on the gross margin percentage side and gain
7:21 / 10:05
from transcript7:21 – 10:05
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