This week's CEO pod cast has Marv doing a Math lesson about gross margin. Only problem is his math is totally wrong. No wonder we are losing money. If you buy something for $5 and sell it for $7.50 thats a 33% gross margin not 50%. I wonder what Lowes investors would think about a CEO that cant do simple math. I wouldnt trust him with my money.
16 replies (most recent on top)
Actually, Marvin is bad a everything.
Go fish math just like how the stores operate.
Margin, markup, merger, Marvin. What’s the difference, they all start win m.
If I was a Lowe’s vendor right now I’d be sh-- ting a f cking brick now.
I think the board is beginning to see their mistake here.
I would bet there is talk balancing the stability of the company in the eyes of investors with the firing of Marvin the mo--n.
Problem is these terms get used interchangeably, Marvin may not know the difference.
hes an ape
No worries, I’m sure whoever wrote that script to make Marvin sound knowledgeable has been fired.
Markup is the difference in value between the cost and sell price expressed as the percentage that difference is of the cost.
You want a 50% markup? Multiply cost by 1.5.
Want a 50% PROFIT (aka margin)?divide cost by .50.
Pretty basic stuff for a CEO to know and be able to teach his underlings.
You’re welcome marvo.
the irony of it all is he was talking down to the associates and giving us all a lesson in margin....only to then get the math wrong. perhaps God is getting tired of his arrogance and just took him down a notch.
CEO said gross margin not mark up. You would think he would known the difference. Especially with the manor he said it. They should take the video down. It's kind of embarrassing. :/
https://www.calculatorsoup.com/calculators/financial/margin-calculator.php
youre wrong. margin is 33%, markup is 50%
Common core by your logic if you buy something for $1 and sell it for $2 you have 100% margin. You can only have 100% margin if you get the cost for free or have an SOS return. Sorry millwork. Hahaha
Common core you went to public school didnt you? Lol Margin is what business is based off of. He should have known.
So all of you should take a brief course in business and maybe even math 101. Gross margin is not profit. If cost of an item is $5.00 but we sell for $7.50 then gross margin for that item is $2.50 which is 50% of the $5.00!!! Great argument though lmao!! Swing and a miss
woooooooooooow. you were right. he got it wrong! i kind of zoned out when i listened the first time because i cant stand when he talks down to you and i hit that point when he started "explaining how the stock market worked" team....team....when a lot of people buy a stock...the number goes up...and when people sell the stock...it goes down. gee thanks for the first grade lesson.
i did love how many words he mispronounced. couldnt even say craftsman correctly.
makes sense that he views it all in such simplistic terms. lay off and cut...the stock goes up.....invest in creating a healthy company and it goes down. my wife brought up to me a reminder that the stores were concerned about him when he got hired because he was well known to want immediate results aka the immediate gratification that children want.
i also loved the part where theyre bringing in a smattering of store managers to the "Store (non)-support center to get their feedback. yeah right!!! these store managers gotta be scared sh--less to go there and actually share their ideas or just how bad things are in the stores thanks to corporate. all the power continues to be consolidated to the top, while they pretend theyre being all-inclusive.
and yet theres a 3rd home improvement chain out there....Ace hardware has more than 5000 stores....locally owned and operated....customer service scores trump lowes and depot by a mile. Ace hardware did research and found that customers really dont do much research and want the employee in the store to be knowledgeable and tell them what to do!! so is lowes and depot lying to justify their actions....or is Ace hardwares research inaccurate?!
margin is 33%, markup is 50%.....i will have to go back and listen to it. if in fact he got it wrong, and we know he reads off a teleprompter....that means pretty much no one at corporate knows jack sh--.
i did love how once again he belittled all employees by asking if youre a day trader or run a hedge fund....no? well then you have no business watching lowes stock price or understanding anything other than that you need to "just worry about helping the customer". he thinks so little of people. systemic problem with people like him only valuing someone for their titles, wealth, and possessions though.
hes about as far from a man after Gods own heart as it gets. how did he not get fired after Q1?!?! i daily cant fathom it. He literally told all investors that he didnt realize that if their cost rise, then they need to sell the product for more!! YOU get fired for not saying hello.....the CEO doesnt get fired for costing the company an insane amount of profit......