Make profit in factories not retail stores - please read

[greglavalleye]

So for example I sell bread in my factor for $8.00 and in the convenience store or wherever it is being sold I sell for $2.00 (whatever the total cost + about 10 cents in the factory), my factory has an obvious profit of about $10 million, my convenience stores lose about $100-$300k depending on the product. I do this with cheap things like bread, canned soup. With tablet PC's I do not, I sell in factor for example at $250 and sell in retail store for $440 just as example. In my first example selling bread in the retail store at $8.00 and making $10million profit while I have loss of 100-300k per store it is in, is that overall a profitable way to run the company?
I also own the gold mind for gold rings, sell the gold for $1350 it does not correlate completely in the factory and still sells the ring for about $750. So the mine I make $2-5 million on it. I am playing with the Post-Release Beta 3.4.00 version. I do not use warehouses. Do you think from what I've described that is a good way to have a continuous profit in a company? I ask because I will have 200 million in the bank and then it jumps to 185 million then up to 225 million in a couple days. I cannot explain it. I do not use COO's they have not helped. I run the media firms without any assistance from anyone. I gather the more media firms that are in one city the less money you will make, is that accurate? I also sell small things like Electronic Components for the max (about $35) which does minimal impact to the final price of a notebook computer or whichever it is being used for but that factory that makes the electronic component makes about a 10-20 million profit. Then I sell the notebooks for about $50-$75 profit per notebook in the factor from cost to sale price, then in the retail store I try to keep them with the lowest price so they just sell quanitity.. Given all I've said and my strategy, is that a way to sustain a profitable business? I'm not sure if this matters but I only have CTO and CMO, don't want a COO. But please let me know on the other issues I mentioned.
Regards,
Greg

[greglavalleye]

Why do I have to buy large quantities of items for the retail stores. For example bread. Why do they need to buy so much more then they can project?

[anjali]

actually you dont pay for it when you purchase anything, the costs for the purchase is deducted the moment you sell the product
the only thing that is charged the moment you purchase are the freight charges. the actual purchase cost at the time of purchase is covered by the banks with interest free loan kinda.
if you sell at a huge loss in the stores sure your cash goes down for ever unit sold, if you dont want to see your wallet fluctuating too much, choose slight profit margin for every part of the production/sales chain and hit the big profit in the retails. and yes your AI staff aint be able to handle it well if you force your retail stores to buy heavily overpriced, as this isnt the usual way. normally you would like to keep down the sales prices within the chain and only have a high price at the end of the chain when selling to the consument as it will lower the revenue and therefore raise operating profit margin.

but as written before, it aint matter if you make loss all the way aslong as you have your high retail sales price and the whole production / sales chain is inhouse, the profit be the same no matter if the you sell at $0.01 in the factory, and at $12.00 in the shop or at $200.00 in the factory and for $12.00 in the shop. it will still be $12.00 you get for the product but you gonna have a damn high fluctuation in cash in the latter case.