We operate on the famous "bottom line"..If that is 5% we are heroes. The profit "margin" may start out high but in the end the net profit is what counts and allows for reinvestment in the business. Personally I never subscribed to the "gouging" theory...what is that anyway? If the consumer is happy with his or her purchase at a given price it is great if the merchant makes a decent profit. I can actually service my customers much better with a good profit. Too little profit breeds poor service and nickel and dime added costs. No one can operate a business for long at too low a profit margin. Accounting can manipulate things for only so long. Some businesses such as oil exploration and pharmaceuticals require immense start up and research costs that either have to be financed by capital or internal profits.

I was thinking about a Hooters franchise. Anyone know what the profit potential is there?
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