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Who makes more money? Wal-Mart or the Foo-Foo-La-La Boutique? Certainly the Boutique has a higher profit margin, but they dont make more money.


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Let's see. The boutique is run my Ms. Foo-Foo and Ms. La-La. It is a small leased shop in a fashionable part of town. Excess inventory is stored in Ms. Foo-Foo's garage, and Ms. La-La personally does all the buying. They have about a 10,000% profit margin on the foo-fah they sell, and they sell enough of it they both live very comforatbly.

Wal-Mart requires huge tracts of land all across the country with huge buildings. These buildings are occupied with literally 100,000 workers. Huge amounts of infrastructure are requried to even produce a paycheck for each one of these employees. Not to mention needing multiple layers of management to watch them. A huge logistical network is required to keep all these stores supplied, and a huge communications network is built to do buying, ordering, and inventory tracking. The managers of Wal-Mart live very comfortably, although they don't have as much time off as Ms. Foo-Foo and Ms. La-La.

Now a casino has a limited amount of space they can allocate to the poker room, and a limited amount of employees and a limited amount of training they can give.

Do they open a Poker Wal-Mart, or try to run a Poker Botique?

Obviously the Botique provides more revenue per the limited resource of casino floor square footage. Do you see why?