Profit is what makes companies stay in business and a 3% profit is a small cushion to rely on if things hit a downturn. A 3% profit can quickly become a 3% loss I would prefer a larger margin to have more room when things go bad
It isn't greed to state that companies that lose money, public or private, go out of business. Black powder firearms are a luxury item and so more likely to be impacted by economic trends. if the economy is tight and people are worried about their job they still pay the rent buy food and keep the electric on but they might not buy a new 1851
Everything else you mentioned is critical to driving a business but without money to keep the lights on and pay those good employees how long would they be employed? How long would a Cabelas stay in business, public or private, losing 150 million a year?
Do not misunderstand: I do not object to making a profit; My point is the "new breed of greed" I have observed over the last 20 years of INVESTORS who insist on "double digit ROI" quarter to quarter. But I should have been clearer, that sort of return comes out to - 20-30%
return annually. That sort of demand completely ignores the reality of how a store (for example) operates, and depends upon the "greater fool theory".
These INVESTORS , I think, have been spoiled by the insane returns of the boom years in tech companies . See Dutch Bulb Bubble.
I think that much of the Loss Cabelas is experiencing can be attributed, in my opinion to "too much/ too fast expansion" . The Corp planners apparently expected the remarkable run on sporting goods to continue unabated, without any thought to "what exactly" would support the
SO, just some thoughts from the balcony, having seen such dumb shit happen too often over the years. Few seem to learn from history,
and bosses seldom (if ever) listen to observation from the troops. All too often I have pointed out "potholes in the road" to management,
and ben told to "sit down and shut up".
It should speak volumes to anybody at a management level, to see that some people are making a living by buying BP revolvers at Cabelas on sale, and parting them out on ebay... I would file this phenomenon under "unintended consequences" like the Snake Bounty in India.
I do hope Cabelas comes out of this ok. They would be sorely missed.