Pinpoint the Profit
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Graphic Design by Aaron Chow
BRB Bottomline: Where does the fat in nonfat milk go? What parts of your social media accounts are being sold off to big companies? How much in interest and fees does your credit card balance cost? Finally, is it disingenuous for companies to market the prettier side of their business—but derive a large portion of their profits elsewhere? Processors are companies that charge a fee for processing raw inputs to be sold to consumers or utilized by other companies. These businesses exist across all industries, and they act as the lubricant for the production process of many of the products and services that we take for granted.
The nature of processing, however, is that the final product or service is necessarily without some byproduct. For instance, in the process of producing skim milk, dairy processors take whole milk and remove the fat. In this article, we analyze three case studies, showing that it isn’t uncommon for processors across different industries to generate about 10-25% of their revenue from selling these byproducts. Read More
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