How much profit do stores make ?

[gluck]

Was just looking around Office Max yesterday and found Brother HL-1440 for $79 and just picked 2 of them. So as I am ready to ring it up the sales rep. comes ahead and says that the printer comes w/o the cable and I could get the cable for $23.99 and I am like shoot another rip off. I decline to buy the cable and just get the printers. Next I stop at the dollar store and look what I get, a cable for 0.99 cents. What on earth is going around ? The is crap. Stores are making so much profit. Even the dollar store might have made something after selling it for $1.
What do you think is happening ? Gosh ...........!

 

[quakefiend420]

Originally posted by: gluck
Was just looking around Office Max yesterday and found Brother HL-1440 for $79 and just picked 2 of them. So as I am ready to ring it up the sales rep. comes ahead and says that the printer comes w/o the cable and I could get the cable for $23.99 and I am like shoot another rip off. I decline to buy the cable and just get the printers. Next I stop at the dollar store and look what I get, a cable for 0.99 cents. What on earth is going around ? The is crap. Stores are making so much profit. Even the dollar store might have made something after selling it for $1.
What do you think is happening ? Gosh ...........!

well...the dollar store may not have the same amount tied up in the cable as office max..but yeah i'd still say theyre making a decent profit off of that cable

 

[nakedfrog]

Could your question be any more vague?

 

[PHiuR]

1 billlion dollars per store. even dollar stores.

 

[loup garou]

$1, Bob

 

[BlueWeasel]

Originally posted by: PHiuR
1 billlion dollars per store. even dollar stores.

LOL! :laugh:

 

[Dulanic]

haha working retail I know how much they make. They sell thoose cables for that much to try to make back all the money they lose on PCs etc. Average Gross Margin on a computer is -1% to 1% BEFORE the rebates. Now PCs is the worst catagory, but people think stores like BB and CC make tons on this stuff, wrong, overall as a whole the store average between 15-20% Gross Margin overall.

 

[FoBoT]

i need a new toner cartridge for my 1440

the first places online that i looked, they are $50 for a normal one and $70 for the giant size

i wonder if i should just buy a new one and sell the old one on fleabay, i wonder what they go for without a cartridge

 

[CRXican]

11ty billion

 

[Ronstang]

This is exactly how the retail electronics/computer business works. They make no money on the printer but make $22 on the cable. It has been this way for quite some time. Smart shoppers really hurt the bottom line but there are enough dumbasses out there to keep places like Best Buy and OfficeMax in business.

 

[flamingelephant]

Profit in any retail store is completely dependant on the product category. There are always loss-leaders that get people in the door and retailers either make 10 cents on them, break even or loose some money. Accessories, less common items always have a higher markup. I know the lumber/building materials industry like the back of my hand. Lumber- things like studs are always a loss leader, other dimentions 1-15%, drywall = loss leader, drywall mud = low margins, drywall tools = 30-70%. Power tools = low margins, drill bits = high margins. Computer stuff is likely the same... that printer, maybe a loser or very low (5%), that cable, probably 500-1000%. Stores will charge what people will pay, uninformed idiots will pay 23.99 for a cable, so they will charge it. We informed people will shop elsewhere and save

 

[rh71]

accessories++

 

[EyeMWing]

Accessories are 1000%+ profit.
Hardware itself is almost 0% profit.

 

[Arkitech]

Originally posted by: flamingelephant
Profit in any retail store is completely dependant on the product category. There are always loss-leaders that get people in the door and retailers either make 10 cents on them, break even or loose some money. Accessories, less common items always have a higher markup. I know the lumber/building materials industry like the back of my hand. Lumber- things like studs are always a loss leader, other dimentions 1-15%, drywall = loss leader, drywall mud = low margins, drywall tools = 30-70%. Power tools = low margins, drill bits = high margins. Computer stuff is likely the same... that printer, maybe a loser or very low (5%), that cable, probably 500-1000%. Stores will charge what people will pay, uninformed idiots will pay 23.99 for a cable, so they will charge it. We informed people will shop elsewhere and save

Yeah its a scam

I was looking for a serial to usb adapter a couple of weeks ago, Best Buy wanted almost 40 freaking dollars. Naturally I walked out empty handed

 

[dquan97]

Yesterday, I noticed that Best Buy was selling a 7' CAT5 cable for $25!!!!! That's a nice profit for them!

 

[Phoenix86]

Margin++

 

[duragezic]

1. ?
2. Profit

 

[jemcam]

The is crap.

???

 

[nodoubts2k]

Well some Mcdonalds make 80k/month in profit. Ones that do good buisness, anyway. Many of the owners own multiple stores. Ive tried to convince my uncle to open a store, but you need many prerequisites, such as 500k up front to cover like 6 months operating expenses, and you have to have been part of a buisness that turned a profit

Edit: I dont know about retail stores

 

[notfred]

This question is like asking, "What color is paint?"

 

[amdskip]

The retailer I work for has its average markup set at about 30% and it's a low price leader.

 

[Kishan]

Originally posted by: Phoenix86
Margin++

indeed

 

[NutBucket]

I was told that CC doesn't make much if any profit off sales but makes up for it in PSP sales.

 

[FlyLice]

Officemax:
Revenue: $12.93 Billion
Gross Profit: $1.59 Billion
Gross Margin: 12.3%
Net Income: 168.75 Million
Net Profit Margin: 1.3%

Retail = LOW margins.

 

[vi edit]

Originally posted by: nodoubts2k
Well some Mcdonalds make 80k/month in profit. Ones that do good buisness, anyway. Many of the owners own multiple stores. Ive tried to convince my uncle to open a store, but you need many prerequisites, such as 500k up front to cover like 6 months operating expenses, and you have to have been part of a buisness that turned a profit

Edit: I dont know about retail stores

Yeh, gross profit. Big difference between gross profit and net. In most fast food net profit winds up being about 10% of gross sales. A typical fast food joint will make between $100,000-$150,000 a year net.

Sure there are a few places like exclusive deals at a major rest stop or watering hole along the interstate that slaughter those numbers, but those are pretty rare.