"Supermarkets may have low profit margins, but they hold a lot of cash. Let's do some math. This Hollywood store will make $900,000 in annual sales. Regardless of the profit, we'll be holding over $600,000 of the suppliers' money, correct?"
"Correct," Sam agreed.
"And do you think we'll just sit on that $600,000? No, this is a massive resource. We can invest it in stocks, bonds, futures, or insurance. Even if we just lend it to a bank, we could get 4% to 5% interest, which is already as much as our profit margin."
"If we have 30 stores like this in the U.S., we'd be holding $18 million in cash. If we had 300 no imagine 3000 stores, we'd be holding $1.8 billion in cash. Let me tell you, with that kind of money, bankers would come begging for your business."
Andy nodded in agreement.
"Yes, if someone controls $1.8 billion in cash, bankers would treat them as a VIP, their most important and valued client."
