[penguindude]

I disagree. In my opinion, most equipments dont cost too much to make in the first place. I mean for each product, the manufacturer is probably making 30% and the retailer is probably making another 20-30%. Some products like the K501 which was sold for $300 in the past are now selling at around $100 from some stores. Now dont you dare tell me that they are LOSING money by selling it at this price.

 

[swt61]

Quote:

Originally Posted by penguindude /img/forum/go_quote.gif I disagree. In my opinion, most equipments dont cost too much to make in the first place. I mean for each product, the manufacturer is probably making 30% and the retailer is probably making another 20-30%. Some products like the K501 which was sold for $300 in the past are now selling at around $100 from some stores. Now dont you dare tell me that they are LOSING money by selling it at this price.

I never said they were losing money, but what you have conveniently forgotten is overhead. The warehouse isn't free, nor is the utilities to run it. The labor force needed to run the business and all the added expenses tied into that labor force is very expensive. The computer system to maintain the customer service and the IT team to maintain the computer system. Let's not even mention insurance, profit sharing or 401K plans. If you're not making a good profit margin you're not going to be in business long. Having run a large division of a multi million dollar construction company opened my eyes to what is needed to run a successful business, and anyone who dives in thinking that they'll just undercut the competition and everything will work out hunky dory hasn't a clue about business.