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by NavinF 11 hours ago
Why are you so confident? Raspberry Pi's prospectus says "unit gross profit margin of 20 per cent. for us and 10 per cent. for our ARs" and they give an example: "sell it to our ARs for $90, which in turn would sell it to the end user for $100". AR=Approved Resellers and delivery costs are paid by the reseller.

Is 10%/$1.50 enough to pay for the retailer's freight, ~3% fee to accept credit cards, inventory carrying, rent, payroll, shrinkage, support/RMA, and fraud?

https://data.fca.org.uk/artefacts/NSM/Portal/NI-000098822/NI...

1 comments

Those are both extraordinarily low profit margins. Good on them!