Back of the napkin math says $30 billion in revenue and a negative $4 billion in profit is a not a viable business model, but people get confused with “market size” and “sales”, and don’t focus enough on “profit margin” and “profits”. A great example is the supermarket industry. According to Statista super market sales topped $848 billion in America in 2022, but did you know supermarkets operate on razor thin margins of 1% to 3%.
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