The majority of companies I have worked for do this. If they buy the item for 100 dollars, they sell it for 200. They are not double their money since they still pay for the store, salaries, electric and all business costs out of the 100 dollars over the cost of goods. So they have to control that cost. That is the issue, controlling the other costs, If they spent too much, they lose money, if they keep costs down, they often ended up with 15 to 20 percent total profit.
Many business work with about a 10 percent total profit.
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