Cheat Sheet Q&A
The question: Gas profits
This morning when you were talking about gas prices you said “ . . . the only ones who are not happy about lower prices are the people selling (gas)”:
It is my understanding that gas vendors sell based on what they pay. So if their prices go up they pass it on and vice-versa. Certain places charge more or less than others depending on overhead. I thought there were regulations on profit margins but when I researched it I couldn’t find any laws – just a bunch of guesstimates between $.08 and $.23 per gallon markup.
Bottom Line: I’ll answer your question about regulation regarding profit margins first. There are no regulations placing mandates generally (and that’s a good thing – if the Government starts deciding what profit margins should be by industry – that may be the day I have to find a new country). What you may be thinking of regs that prevent price gouging in emergencies. Now for profit margins…
Here are the average profit margins for each piece of the process:
Keep in mind that taxes add about 50 cents per gallon to the cost of gasoline. So the average per gallon profit for gas stations with gas at $4 would be about 27 cents (.079% by $3.50). With gas at $3.30 per gallon the profit would be about 22 cents (.079% by $2.80). So as wholesale prices rise or decline every piece of the supply chain will see an increase or decrease in profit as long as margins remain consistent.
The average profit margin across all industries is about 8%. The average profit margin for each company that’s part of the process is about 7.6% so the oil/gas industry is right in-line.
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In the future millionaires may be made in
Bottom Line: In the not so distant future I’ll detail how the average American making the average income can become a millionaire in 25 years (without suffering in the process). For now though let’s talk about the latest batch of millionaires.
A few months back a report came out demonstrating the belief that the majority of millionaires over the next five year will be coming from
The largest simultaneous series of promotions ever is about to take place:
Bottom Line: Very few companies have 25,000 employees on their payroll. Of those only one has 25,000 employees that are able to be promoted all at one time… Wal-Mart. Wal-Mart has initiated an effort to retain and attract talent to company through a career program. As part of the rollout of this new plan Wal-Mart will promote 25,000 employees around the country by the end of the year.
What Netflix is working on now could almost eliminate the need for the movie theater:
Bottom Line: There are two reasons left that still attract movie goers to the movie theater: Not wanting to wait to see a new movie and the “movie theater experience”. If Netflix is successful in its latest initiative that will be down to the “movie theater experience”.
Netflix is looking to use its rapid growth, 89% streaming market share and strong cash flow to try to influence movie studios to allow Netflix to release movies at the same time as movie theaters. This will be anything but easy and cheap for Netflix to accomplish but they’ve got a shot at making it happen as they continue to grow rapidly and steal market share from traditional service providers.
Surprise - Google + is suddenly relevant:
Bottom Line: Google+ has been “that other social network” for many to date. Or at least until sometime in May. Google+ is reporting significant growth in users of late. Google+ had 390 million total users with 190 being active at least monthly by the end of May. Those numbers are up to 540 million total users with 390 million of them being active monthly users. So you might find a level of engagement that makes Google+ worthwhile. There is another business reason you may want to try it out…
The more relevant you and/or your business is on Google+, the better the outcome of your organic SEO on Google. In other words, Google builds Google+ into their formula for organic search results. Given that anyone or company that needs to perform well with search needs to do well with Google, you’ll benefit by taking on Google+ .
Those who are informed about ACA are overwhelmingly opposed to it:
Bottom Line: NBC released the story that the Obama Administration knew right along that the ACA would result in millions losing insurance options as plans would have to conform to Federal Mandates. While that’s no surprise to those of us who actually looked into the law some time ago, it is the first time that’s it’s be widely reported. With that story as the backdrop here is the outcome among those who are aware of the deceit of the Administration.
So in reality it was a careful and well executed plan by the Obama administration. Say what you need to, get it passed and win reelection knowing that if Americans knew the truth of an already unpopular law there would be severe fallout.
Google Glass update:
Bottom Line: We don’t know if those vessels in the water in the
10,000 people have been granted access to Google Glass so far to aid in testing and development. Those people are able to trade in their original product for the latest version (which would indicate Google is getting fairly close to a rollout). They are also saying they’ll be prescription capable with the launch next year.
It’s still an odd concept but its coming and we may all be walking around like the terminator one day.