Re: The recent "BUY AMERICAN" comments here...
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: heatseekins</div><div class="ubbcode-body">So tell me whats a realistic profit a guy can expect per hour on 4mil$ worth of equipment? What kind of a net profit should one expect on their sales?
Whats a realistic markup of a product for a wholesaler, distributor, and dealer system?
</div></div>
As much as the market will bear Mon Ami!
Some may be offended by an "Obscene" profit but only the decline in sales due to the influx of entrants to the particular market would normally generate the need to lower pricing.
When deciding how much to mark up the the price of a product or service over the manufacturing or acquisition costs, one must realize that not all costs are immediately evident and may not reveal themselves for many years. Some are referred to as externalities, such as charges for pollution, or asbestos exposure, that may have occurred three generations prior. Others may reveal themselves three years after the sale, requiring refunds or replacements that only a comfortable margin at the sales point would allow without endangering the long term viability of the business.
Ultimately, the idea that one must be attentive to the market conditions, be versatile and able to speak to all of one's varied customers and critics, without anger or acrimony, means that a person selling a service or product can best navigate the many surprises and challenges that arise.
Even when people who don't know what the fuck they are talking about run their yaps about how you are under taxed and charge too much for your outstanding work, that no one else can do as well, yet are willing risk their money on patent or copyright infringed or unlicensed, uninsured, undocumented competition...
But hey it costs less!
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: heatseekins</div><div class="ubbcode-body">So tell me whats a realistic profit a guy can expect per hour on 4mil$ worth of equipment? What kind of a net profit should one expect on their sales?
Whats a realistic markup of a product for a wholesaler, distributor, and dealer system?
</div></div>
As much as the market will bear Mon Ami!
Some may be offended by an "Obscene" profit but only the decline in sales due to the influx of entrants to the particular market would normally generate the need to lower pricing.
When deciding how much to mark up the the price of a product or service over the manufacturing or acquisition costs, one must realize that not all costs are immediately evident and may not reveal themselves for many years. Some are referred to as externalities, such as charges for pollution, or asbestos exposure, that may have occurred three generations prior. Others may reveal themselves three years after the sale, requiring refunds or replacements that only a comfortable margin at the sales point would allow without endangering the long term viability of the business.
Ultimately, the idea that one must be attentive to the market conditions, be versatile and able to speak to all of one's varied customers and critics, without anger or acrimony, means that a person selling a service or product can best navigate the many surprises and challenges that arise.
Even when people who don't know what the fuck they are talking about run their yaps about how you are under taxed and charge too much for your outstanding work, that no one else can do as well, yet are willing risk their money on patent or copyright infringed or unlicensed, uninsured, undocumented competition...
But hey it costs less!
