| Re: Software retailer profit margins anyone? @ckin2001: "Best Buy offers...to employees at 5% over cost"
The problem here is what cost? I'm quite sure it's not the unit price that they paid their original supplier. They probably add distribution cost, security costs to cover the lost due to theft, etc and then add the 5%. I think they mean 5% net retail profit rather than 5% over purchase price. Stores like that purchase in such volume and make combined purchases that it's difficult to get a good idea on the original price. It would be nice to know from a buyer for the chain or an accountant what is the actual markup? Their cost would be much lower, because of purchasing for multiple stores, than say a small store specializing in just music. |