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Thread: Film Margins

  1. #11
    Truzi's Avatar
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    Quote Originally Posted by ic-racer View Post
    Yes, I though this would be a thread about printing the rebate or processing defects...
    So did I.
    Truzi

  2. #12
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    The problem with high margins and a publicly traded company is that there is enormous pressure from the shareholders to maintain those margins, even if the company's industry is changing.

    The last few years of Kodak flailing around were the result of those pressures.

    The shareholders (such as large pension plans) were not likely to let Kodak just downsize to something that would make a modest profit. They were more likely to demand that the profit stream be replaced with something like they were used to.

    One of the reasons Kodak used to be so successful was that they plowed a lot of those profits back into maintaining a happy, well paid and well benefited workforce. Unfortunately, like just about every one else in the world, Kodak under-estimated the long term costs of the retirement benefits that accrued.
    Matt

    “Photography is a complex and fluid medium, and its many factors are not applied in simple sequence. Rather, the process may be likened to the art of the juggler in keeping many balls in the air at one time!”

    Ansel Adams, from the introduction to The Negative - The New Ansel Adams Photography Series / Book 2

  3. #13
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    As a financial illiterate I don't know the answer to the question, but it's amazing how many people can become instant financial and business experts and know the answers to all of Kodak's problems, most of them without any economic education or training, when some of the Worlds best economists and business consultants have failed.
    Ben

  4. #14

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    Quote Originally Posted by benjiboy View Post
    As a financial illiterate I don't know the answer to the question, but it's amazing how many people can become instant financial and business experts and know the answers to all of Kodak's problems, most of them without any economic education or training, when some of the Worlds best economists and business consultants have failed.
    My post is asking questions, not claiming to be an expert. I see no need for your cheap shot.

  5. #15
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    Quote Originally Posted by RattyMouse View Post
    My post is asking questions, not claiming to be an expert. I see no need for your cheap shot.
    It's not your question that I have issues with, but the certitude of the answers by the instant experts that internet forums produce.
    Last edited by benjiboy; 01-01-2014 at 07:38 AM. Click to view previous post history.
    Ben

  6. #16

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    70% sounds about right ...

    and then the market dropped
    and their golden cow ended up being
    made of aluminum foil
    im empty, good luck

  7. #17

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    Quote Originally Posted by benjiboy View Post
    As a financial illiterate I don't know the answer to the question, but it's amazing how many people can become instant financial and business experts and know the answers to all of Kodak's problems, most of them without any economic education or training, when some of the Worlds best economists and business consultants have failed.
    If only world-renowned experts were allowed to take part in forum discussions, I believe this place would be rather quiet. Most of us realize that we have to critically value what we read. At least two points that have been made in earlier posts make sense to me:

    1. It is difficult to compare gross margins unless the cost structure and business model are similar

    2. Lower margins and volumes are negative to any business and will hurt the result unless countered by reducing cost or finding new business opportunities

    Best regards,

    Jonas

  8. #18
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    Gross margin (aka simply 'margin') is the difference between the revenues from sales and the cost of the materials used to make the goods sold. This is BEFORE anybody gets paid, before any other bills are paid, etc....do not confuse margin with profit. Most companies that produce something (like film) that is capital intensive and requires heavy investment in research and development would be very close to going out of business with margins below 40%. Seventy percent margins are really NOT extraordinary at all for a company like Kodak.

  9. #19
    MattKing's Avatar
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    Quote Originally Posted by BradS View Post
    Gross margin (aka simply 'margin') is the difference between the revenues from sales and the cost of the materials used to make the goods sold. This is BEFORE anybody gets paid, before any other bills are paid, etc....do not confuse margin with profit. Most companies that produce something (like film) that is capital intensive and requires heavy investment in research and development would be very close to going out of business with margins below 40%. Seventy percent margins are really NOT extraordinary at all for a company like Kodak.
    The best example of this is the software industry - those boxes with discs or downloads cost almost nothing.
    Matt

    “Photography is a complex and fluid medium, and its many factors are not applied in simple sequence. Rather, the process may be likened to the art of the juggler in keeping many balls in the air at one time!”

    Ansel Adams, from the introduction to The Negative - The New Ansel Adams Photography Series / Book 2

  10. #20
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    Quote Originally Posted by MattKing View Post
    The best example of this is the software industry - those boxes with discs or downloads cost almost nothing.
    Yes. Exactly. The raw materials cost for purely software product that is only available by download, would be zero = so it doesn't really make sense to talk about margins for that type of thing.

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