« on: November 22, 2011, 03:42:10 PM »
Now that I can start to buy, thanks Mt. Spokane.
15% is still pretty good. Certainly not the same as saying (we make no money) 15% is $150 profit on every $1,000 moved. Customer pays the sales tax, every expense is a write-off, and they more than cover the overhead on the accessories and then some.
I wouldn't be surprised to hear even slightly larger % margins from some sellers, not including those bonuses you mentioned.
What about things like price changes in the MSRP? Aren't they guaranteed by Canon when the MSRP lowers? I could have sworn they were.
expenses are not write-offs. Expenses are deductions.
both write-offs and deductions will be paid from the gross margin.
15% margin (any margin) on the item needs to pay for all other expenses. Which means, if you have a profit of $150 from a $1000 camera, you still need to pay rent, taxes, fees, employees, advertisement, etc, etc.