Post #14484 by Mark on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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I wonder what the "derivative" volume does to help/hurt the bottom lines of the vendors who actually manufacture the items sold under the Kirkland name.

I'd guess that they only agree to do it if they have the excess capacity. And if the manufacturers sell for, let's say, 10% less, but with minimal distribution costs, and zero shelving costs, the profit margin probably comes pretty close to traditional retail.

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