Your math is a bit off, but overall your heart is in the right place.
If you buy a $20 item from Wallmart, they don't make $20 in profits. They make $2 in profits, and $18 in product delivery and expenses. The reason they drive small businesses out of business is they can operate on such thin margins for a long time. So cutting their revenue by 10% really would only cut their profits by 1%, if the above example were accurate, and I think that is more or less their margins give or take a couple cents.
It still has a strong impact, though. As per your example, you'd halve their profits with a mere 10% reduction, which while not putting them out of business, would get their board of directors on the asses of everyone with any level of decision-making power.
Your math is a bit off, but overall your heart is in the right place.
If you buy a $20 item from Wallmart, they don't make $20 in profits. They make $2 in profits, and $18 in product delivery and expenses. The reason they drive small businesses out of business is they can operate on such thin margins for a long time. So cutting their revenue by 10% really would only cut their profits by 1%, if the above example were accurate, and I think that is more or less their margins give or take a couple cents.
It still has a strong impact, though. As per your example, you'd halve their profits with a mere 10% reduction, which while not putting them out of business, would get their board of directors on the asses of everyone with any level of decision-making power.