2007-01-23 14:25:29 · 4 answers · asked by panfriedsushi 1 in Business & Finance ➔ Personal Finance
The ingredients for a pizza are about $1.00... possibly less depending on the establishment, including the box
I would guess the employees makes $7.00/hr - so, five minutes to make the pizza = $0.58
Rent is almost incalcuable because it depends on the zip code and the type of building they're in... but we'll say $4000/month - for 5 minutes worth of time... $0.18
All other operating cost probably come to about $0.20 per pizza... so... grand total
>$2.00/pizza -- profits for 3 = $15.00 -- think about that next time you pay $20+ for one!
If they sell 300 pizza a day, that's a profit of $1,642,500/year...
Of course, the smaller the business the smaller the profit margin because they can't buy in bulk and sell fewer.
2007-01-23 14:38:15 · answer #1 · answered by Tiff 5 · 0⤊ 0⤋
People buy 3 pizzas for $7 instead of just one because they think it's a good deal. $21 is much more than say $9 to $11 for 1 pizza.
2007-01-23 14:31:34 · answer #2 · answered by jjc92787 6 · 0⤊ 0⤋
It's all about volume. They buy bulk materials. Sell alot and have other products to market.
2007-01-23 14:31:27 · answer #3 · answered by Nostrebor 2 · 0⤊ 0⤋
flour costs almost nothing, a little sauce 50 cents, fake cheese $1
thats how , and volume
2007-01-23 14:30:15 · answer #4 · answered by kurticus1024 7 · 0⤊ 0⤋