Sunday, 05 May 2013 11:23

America's Most Profitable

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America's Most Profitable

Successful companies frequently rely heavily on just one product for the majority of their sales and profit. Because each product represents such an outsized share of their respective company’s revenue, the products’ tremendous margins are the foundation of the company’s profit.  The most profitable products tend to rely on the power of their brand, which can command a premium price and sell extraordinary numbers of units.

What are the most profitable?  And why...


These products are the most profitable for several reasons. Nearly all of them are the market leader in their sector and are mass produced at an unprecedented scale. As a result, the companies can apply significant pressure up and down their supply chain, ensuring they can manufacture the product at the lowest cost, and sell it to customers at the highest possible price.

  1. iPhone -- Operating margin: 40% from $80.5 billion in Revenue
  2. Marlboro -- Operating margin: 30% from $19.0 billion in Revenue
  3. Monster -- Operating margin: 26.7% from $1.9 billion in Revenue
  4. Coca-Cola -- Operating margin: 25% from $14.3 billion in Revenue
  5. Enfamil -- Operating margin: 24% from $2.3 billion in Revenue

Some of these products, including the iPhone, Coke and Marlboro, are part of the world’s most valuable brands as measured by brand consultancies like Interbrand and BrandZ. All three companies are the market leader, despite the presence of competing products that sell for much less.

An important factor that contributes to product profitability is good management. A company that spends too much on research and development, marketing, or management can smother a product’s margins. Of course, controlling expenses is a balancing act. A product that is not well marketed is a product that will probably not do well for long.

Product profitability is among the most difficult financial measurement to analyze from the financial information released by many of America’s public companies. It is also among the most difficult to find information on. Public companies tend to guard data on product profits, and rightly so. This information is the equivalent of a trade secret that corporations do not want their competitors to have, even if the figures can be estimated.

Analysis:  Results are based on data provided by Capital IQ. 24/7 Wall St. The data was reviewed 24/7 Wall St.  24/7 Wall St. analyzed the S&P 500 companies that produce consumer products. 24/7 Wall St. only considered corporations that have a single product as the company’s flagship brand, or where the product represented the largest single contributor of revenue. 24/7 Wall St. excluded companies with an operating margin of less than 15%, as well as companies that did not break out revenue by division or product.

Source: http://finance.yahoo.com/news/america%E2%80%99s-most-profitable-products-183025482.html

Read 2498 times Last modified on Sunday, 06 March 2016 22:05
Rich Wermske

My pedigree and bona fides are published elsewhere. That said, I respect that a few may wish to learn more about the private person behind the writing.  While I accept I am exceptionally introverted (tending toward the misanthropic), I do enjoy socializing and sharing time with like-minded individuals. I have a zeal for integrity, ethics, and the economics of both interpersonal and organizational behavior.

The product of multi-generational paternal dysfunction, I practice healthy recovery (sobriety date December 11, 2001).  I am endogamous in my close personal relationships and belong to a variety of tribes that shape my worldview (in no particular order):

☯ I participate in and enjoy most geek culture. ☯ I am a practicing Buddhist and a legally ordained minister. I like to believe that people of other spiritual/faith systems find me approachable.  I am a member of the GLBTQA community -- I married my long-time partner in a ceremony officiated by Jeralita "Jeri" Costa of Joyful Joinings on November 18, 2013, certificated in King County, Seattle WA. We celebrate an anniversary date of February 2, 2002.  I am a service-connected, disabled, American veteran (USAF).  I am a University of Houston alumnus (BBA/MIS) and currently studying as a post baccalaureate for an additional degree in Philosophy and Law, Values, & Policy.  I am a retired Bishop in the Church of Commerce and Capitalism; the story arch of my prosecuting and proselytizing the technological proletariat is now behind me.  I am a native Houstonian (and obviously Texan).  At 50 years old, I am a "child of the sixties" and consider the 80's to be my formative years.

As I still struggle with humility, I strive to make willingness, honesty, and open mindedness cornerstones in all my affairs. Fourteen years of sobriety has taught me that none of "this" means a thing if I'm unwilling, dishonest, or close minded.  Therefore I work hard on the things I believe in --

  • I believe we can always achieve more if we collaborate and compromise.
  • I believe that liberal(ism) is a good word/concept and something to be proud to support.  The modern, systematic corruption of liberal ideas is a living human tragedy.
  • I believe in a worldview founded on ideas of liberty and equality. The pragmatism of this site and my journey is rooted in both classical and social liberalism.
  • I believe in democratic elections and institutions including a media free of commercial and governmental bias.  Liberty and equality perish when a society becomes uneducated and/or ill-informed.
  • I believe in diversity of life and ideas.  Life and ideas can only flourish when the gene pool is vast and abundantly differentiated.
  • I believe in advancing balance in civil, social, and privacy rights such that all of humanity is continuously uplifted.
  • I believe in separation of church (spirituality) and state (governance) -- with neither in supremacy nor subjugation.
  • I believe in private (real or tangible) property explicitly excluding ideas, knowledge, and methods; such non-tangibles, by natural law, being free for all humanity and emancipated at conception.

While change and the uncertainty of the future may be uncomfortable, I do not fear the unknown; therefore:

    • I believe I must be willing to make difficult choices, that those choices may not be all that I desire, and that such may result in undesirable (or unintended) consequences;
    • I believe we must be willing to make mistakes or be wrong; and I am willing to change my mind if necessary.
I undertake to abide the five precepts of Buddhism; therefore:
  1. I believe it is wrong to kill or to knowingly allow others to kill.
  2. I believe it is wrong to steal or to knowingly allow others to steal.
  3. I believe in abstention from sexual misconduct.
  4. I believe it is wrong to lie or to knowingly allow others to lie.
  5. I believe in abstention from non-medicinal intoxicants as such clouds the mind.

Suicide, major depression, borderline personality, and alcoholism are feral monsters ever howling at my doorstep. However, despite my turbulent and tragic past, rare is the day where I have to rationalize, defend, or justify the actions of that person I see looking back at me in the mirror...

Website: www.wermske.com
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