Sharon Yourell Lawlor’s Post

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The Modern Shopper Strategist: Award-winning retail & shopper expert, author, and keynote speaker. RETHINK Retail Top Expert (2023 & 2024). Decoding retail, tracking trends, and crafting sustainable strategies.

Super one to reflect on this weekend.

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CEO of Influicity | Bestselling Author | Building $100M+ brands through community.

McDonald's does it. So does Marriott. And Costco too. All these companies sell you one thing, but make money on something else. I call it the mystery money machine. Here's how it works. ➝ McDonald's is the world's biggest real estate company pretending to be a restaurant chain. The company owns 25,000 buildings and lots of land underneath. Franchisees pay rent and McD's cashes in. Flipping burgers is the glue holding it together. (There's no glue in the burgers - promise.) ➝ Costco is a retailer that sold $226B worth of stuff last year. But they barely made money off that. So how did they land a profit of $9B? Memberships. Yup, 80% of Costco's profit comes from the $100 fee you pay just to walk in the door. ➝ Marriott is a hotel chain that doesn't actually own hotels. It just slaps a brand on them. While it does run a few, most of the 30 chains owned by Marriott license the name, operating system, and loyalty program to independent owners. That business model brought in a cool $20B last year. _____ Cash comes from all sorts of places. And sometimes it's from where you least expect. #marketing #revenue #growth P.S. Enjoy this? Grab my new book to make more money in your business. https://lnkd.in/gtMKi_AN

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ShiSh S.

Global Retail Startups Lead | RETHINK Retail Top Retail Expert 2024 | RTIH Top 100 Retail Technology Influencers | Advisory Board GMU Center for Retail Transformation | Mentor at Unlimited Awesome

1w

Thanks for sharing, Sharon. Also intriguing is Tesla's revenue from the sale of carbon credits: a substantial $1.79 billion from carbon credit sales last year, bringing its total earnings from such credits since 2009 to nearly $9 billion: https://carboncredits.com/tesla-profits-dip-but-carbon-credits-revenue-up-38-of-net-income/

David Marcotte

SVP Cross-Industry/Cross-Border and Technology at Kantar Consulting

1w

Thank you, this has been a foundation for my classes of retail economics for a long time, yet with a limited impact to non-retailers. Would add the same for payments for goods only after sold (regardless of terms), retail credit as the largest new revenue group (the rest of the world, the Americans sadly decided to listen 'core strategy' investment types) and cycling cash flows thru short-term loans.

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Peter Kirwan

Head of Digital @ Louis Copeland & Sons

1w

Were the Catholic Church the first one to come up with this model??

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