Quote Originally Posted by E-Stat
You can never make more than 100 % profit. Even when you get something for free, 100% of whatever you sell it for is profit. You are referring to markup.

Your example certainly does not represent my cables. The WBT connectors on mine alone cost more than $1.00 each. I am certainly making allowance that PE below is making some profit on their sale.

http://www.partsexpress.com/pe/pshow...=093-507&DID=7

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Actually yes you can have more than 100% profit. Think about the number I posted. I was actually in error. I said 1X1000% was $10.00 so if you sold your $1.00 item for $10.00 you would have a 1000% Mark-up. To calculate profit you take the selling price $10.00 and subtract your cost which was $1.00. You made a PROFIT of $9.00 on your $1.00 item. That is a 900% profit...Sorry for the first mistake but this is indeed correct now.

The fact that most cmpanies don't achieve anything remotely clsoe to 100% profits the calculation is accurate. The fact that Parts Express sells a connector for $25.00 does not mean it cost them $25.00...they have to make money right?

Most retailers like parts express will have a mark-up of 50% or more to ensure they make money. That item cost parts express no more than $12.50.00 to buy. The company that actuall made the part likely marked it up well over 100% to parts express. If that part cost the manufacturer $6.00 I'd be amazed. In fact I seriously doubt the manufacturer's cost is more than $1.00.

The B&W DM 303 likely cost B&W less than $30.00 to make and it sells for ten time that amount.

My dad used to work for a company that supplied sheet metal and bolts etc for GM in the 80s. The best VALUE in terms of cost to purchase ratio was in the entry level car since the sheet metal in the cadillac was the same as it was on the Cavelier. In fact there is likely not a single American vehicle including the Hummer that has more than $7,000.00CDN of actual materials in there. Unless the leather is Corinthian - and a supplier told me once that the leather they sold to those cars with Leather as an op[tion cost less than $20.00 for the whole car. What do they charge to the consumer 2k? And then it either cracks or makes your ass hot in the sun...stupidest thing they put in cars in my opinion...but I guess rich people think leather is superior because it's expensive.