If you’re curious how much profit stores make, here’s an open directory I found with dealer price lists of many CE brands.
I’d love to see the line-items that make up the COST portion. I assume there are distributor fees (sitting in a warehouse between the manufacturer and the retail store - true middleman costs, which can be a large portion).
Meh, I thought CE would mean computer equipment… NOT…
oh well, I’m sure there are wholesaler price lists somewhere but they probably wouldn’t be on an open database or a system with weak security. consumers will fell somewhat po’d when they see how much the wholesale to retail markups are… even for etailers like newegg.
[QUOTE=ChristineBCW;2712822]I’d love to see the line-items that make up the COST portion. I assume there are distributor fees (sitting in a warehouse between the manufacturer and the retail store - true middleman costs, which can be a large portion).[/QUOTE]
Transport and handling can be costly and don’t forget the premium for goods lost out the back door!
For general AV supplies and electronic components, there are actually a handful of trade suppliers that have their prices open to the public. The catch is the minimum order quantities and handling charges, where the MoQ may be 10 to 100 depending on the item and the handling charge something like 5% to 10% if the total order value is under a certain amount.
The main example I can think of is CPC UK (link). When I worked for a computer shop roughly 10 years ago, I remember them trying to set up a trade account with CPC, only to discover that their prices were actually as displayed to the public, where as with most other stores there was a substantial difference between the trade and retail prices.
On the other hand, even when a trade supplier is open to the public, the service is very different to a retail shop. I would generally only order from CPC or another trade supplier if I planned buying 10 or more of certain components to get the cheaper handling fees or where a produce was substantially cheaper than Amazon or elsewhere with the handling fees taken in to account, e.g. cables and electronic components. Quite often I ended up having to return wrongly-picked items, unlike retail online stores where it is rare to get an incorrect item.
FWIW, those price seem a bit high. CDT must be at the very end of the distribution chain.
It’s often a good source to look at the website alibaba.com they are a wholesale trade site with not only listings but entertain offers from buyers (both in the re/etail business and end buyers). This is a way to know roughly what a wholesaler’s markup is… unless they have a “PRIMO” Asian (or mfg country of origin) partner. Back in the day, many “RESELLERS” of computer components-- specifically memory chips had CHOICE partners who could get below wholesale deals for large quantities of chips… and since the MARKET was stable it was relatively easy to make a “killing” provided you were not bad at selling product FAST (ie, within the same fiscal year). These cycles are quite different today and the margins of risk probably much higher than before the world economies fell off a cliff.