Post by
AZhitman »
https://forums.nicoclub.com/azhitman-u113.html
Mon Jul 19, 2004 5:26 am
NY - No need to post proof.
However, markup on a lot of stuff really ISN'T that high. I can tell you my profit after parts, labor and shipping on an exhaust system is between 10 and 20% of purchase price.
You have to remember, there's often a middleman (wholesaler) involved as well. That entity has to be paid too. Very few companies get their stuff STRAIGHT from the manufacturer.
A markup of 50% does NOT mean all 50% goes in pocket. Out of that you have to pay overhead, advertising, insurance, shipping, wages, and your own time is worth something as well....
Don't compare to ebay - Sometimes things on ebay are HIGHER than you can find elsewhere (i.e. Plextor vidcap device I'm looking at is $20 higher on ebay than on buy.com).. Also, sometimes ebay auctions are for blemished or returned goods (or stuff that "fell off a truck").
You'd be surprised if you saw the facilities of some of our major advertisers - No corporate boardrooms, no fancy letterhead, no jets, no company cars.... Just a few dedicated people trying to make a living doing what they love. Very few of them are RICH, and most of them could make just as much money (with less headaches) working at a regular job.
The $300 question? Maybe true, maybe not. I have seen companies make far less... I have personally witnessed one of our advertisers making $5 (yes, $5) over cost on a $400 purchase. The thought being, the manufacturer rewards them by making them a higher-tiered distributor, or gives them a kickback on their next order.... There's a lot more to this than people think.
Why do you think people go to college for 4-5 years to get a business degree?