Least Profitable Businesses in the US
There are many profits making business in US, but at the same time least profitable business also exist. There are various reasons for the organizations that are making marninal to no profits.
Due to the Existence of Non-profit Organization
Every non-profit organization are least profitable. They exist for the betterment of human goods and does not involved in business for the purpose of making profit. In US there are many non- profit organization which are working and are making less profit. For example many CCRCs (Continuing Care Retirement Communities) and Assisted Living Facilities are run as non profits which turn on average a -1.0% profit margin. Some organization like hospitals, schools and many other institutions has to run in charity for the benefit of the people in US. They are existing for the betterment of the society. Schools and other institution are engaging themselves to created educated people for the huge employment opportunity in US. This type of organization is serving the society without looking for the profit. The non-profit organization is providing facility to the people and to provide better facility they are incurring less profit.
Beverage Manufacturer Organization
Beverage manufactures which includes wine and beer , soft drink and bottled water producers are making less profit in US . It has been observed that the sales if beverages in the United States have been decreasing by 25 percent. It was gaining huge profit margin from the 1960s through 1990s but it is now experiencing a major decline and are earning least profit. It has been stated that the American are trying to avoid the consumption of soft drink. The less soda consumption is responsible for the substantial reduction in daily calories due to health related issues.
Though the profit margin of beverages across the globe is increasing tremendously but at the same time it is decreasing like anything in US. It has been stated that consumption of soft drink is one of the main cause of obesity and as we know the rate of obesity is increasing in American day by day. Though drinking wine and other beverages are the manifest of American culture , still it is sustainably declining. They are preferring more water bottled rather than other drink such as wineand soft drink.
Grocery and Related Product Merchant Wholesalers
Grocery and related product merchant wholesales are making less profit in US since the last decade. There are many retailers are there and they also need to make profit. Hence wholesalers need to give the product at a minimum rate which in turn leads to less profit margin. There are many chains from the wholesaler to the ultimate consumers. As we know consumer are the king and now a day there are more aware about the prices and the product.
Due to the online shopping they can buy any product from online rather than retailer shoppe. To meet the demand of the customers, retailer need to reduce their price and ultimately the wholesaler need to comprise on that keeping the less profit margin.
Special Food Services
Special Food services are also making a least profit in US. Now a day American are becoming very health conscious. It has been found that from the research that obesity and many health problem are caused in American due to the unhealthy food they consumed to sustain their life styles. Specialized food contains huge calories and now a day they want to reduce their calories consumption. Hence the sales of special food services are declining at a tremendous rate in US.
Business always have ups and down and needs innovation to sustain in this competitive environment.