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They're still making a profit off of it.

Sure. You want businesses you deal with to make profit, otherwise they won't be around to do business with in the future.

In industrial supply chain, if you have two suppliers who are each charging the same price and you know that one is making higher profit margins, go with the one with higher margins - they're more likely to be stable.

Meant to say, they're still making an extremely good profit off of it.

Some profit is useful for saving as a cushion. But in general remember that profit is money that the business literally didn't find a way to spend, to the extent that they're willing to throw away 20% of it as tax.

I'd rather deal with a company that ploughs surplus back into salaries or R&D or even charity than squandering it as profit.

Agreed, but on a transaction level having higher profit MARGINS is what enables the company to have money to plow back into the business.

Is that bad?

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