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by ahel
465 days ago
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I think I would like to be able to answer the following two questions: 1. what percentage of this object price is net profit?
2. is that percentage a "fair" proportion? but atm, I don't have a "scientific" way to respond to those questions so I usually go with my gut, or do whatever other people in my circle do (which is not ideal and I'd like to change) |
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You only know the actual profit margins much later, after you have sold the devices and seen them last through their warranty period.
If you'd like to minimize excess profit, take note of which products seem overpriced compared to their peers. Traditionally, anything Apple makes is a prime example. For a non-tech example, look at disposable alkaline batteries. Rayovac has been owned by Energizer since 2018 and their batteries have become increasingly comparable over time, yet Rayovac batteries are much less expensive than comparable Energizer batteries. The difference? Mostly marketing and profit margin, at this point.