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by kumarm 4159 days ago
[exclusively sell electronic components, hobbyist kits and stop selling things like TV and phones ]

So sell low margin products and leave out high margin products? How do you expect that to work for a business?

2 comments

TVs and phones are very low-margin products. Batteries are high margin products. I think the RadioShack cost for a 2-pack of AA batteries is about 5-20 cents, and they charge like 5 dollars, right? A TV or phone costing $500 to RS probably sells for $502. At least, that's how The Source works in Canada (former RadioShack).

Telecom contracts, however, are high-margin, and they'll have to continue increase their mobile contracts significantly if they want to stay in business.

Profit has never been high on Amazon's list of priorities...