I know that there's the "5x rule" -- BOM cost is supposed to be 5x less than ret... | Hacker News

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		mlsu on Sept 26, 2023 \| parent \| context \| favorite \| on: FTC sues Amazon for illegally maintaining monopoly... I know that there's the "5x rule" -- BOM cost is supposed to be 5x less than retail. Is there such a rule for fulfillment and delivery? Of course, 56% seems monstrously high to me, but then again, so did 5x BOM cost before I had that explained.

22289d on Sept 26, 2023 [–]

Food cost in restaurants in similarly shocking. They operate on metrics similar to BOM. Might shock you to find out how much that $40 pizza cost in dough, sauce, cheese and toppings. (Probably just a couple bucks).

papertokyo on Sept 26, 2023 | [–]

And yet a 10% profit margin in the restaurant business is considered high.

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