Baltoro Posted November 15, 2006 Share Posted November 15, 2006 Maybe becuase something to the tune of 80% of profits go out in people's dividends. It's not like Sally and friends are down there in Kent counting their billions. First there are taxes to pay. That figure is a sales figure from the register. Say for the sake of math it's 10%. Assume than that maybe half of their after tax sales are cost of product so now it is 450mil. Assume that half of the original sales were regular price stuff so people earn a dividend on it. So 50mil is going back to members. So you've got 400mil left over to run 80+ stores, pay 7000 employees, develop new technology, both product and otherwise, have your return policy abused and build a new 400K sq.ft. warehouse on the east coast to support all those people who want to buy over there as well but shouldn't be allowed because that's not fair. REI never should have left Capitol Hill because growth is bad and/or unethical and anyways, I'm sure they'd still be doing a booming business like the rest of the flourishing retail market on Capitol Hill. It is without a doubt not the most "pure" co-op structure, but it is also still in business. A co-op that is out of business can't serve it's members very well. You can argue that going out of business is better than doing what they're doing but I think that's taking it too far and your not likely to find any retailer that's going to take that high road. Didn't they also have some involvment in retaining the Peshastin area for public use? Support of bad rock doesn't mean that they're bad people. Quote Link to comment Share on other sites More sharing options...
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