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We do most of our sales of physical goods we manufacture through a distributor. The distributor marks up the price they pay by 80%. Effectively the distributor

by dnh44 6y ago

We do most of our sales of physical goods we manufacture through a distributor. The distributor marks up the price they pay by 80%. Effectively the distributor takes over 50% of the profit. We think we’re getting a great deal. Eventually the goods make their way to retail where the retail outlet takes 80% of the money of the entire supply chain. This is a pretty normal situation for most businesses. To me having Apple take only 30% sounds like a fantastic deal.

camgunz 6y ago
That’s physical distribution. Digital distribution costs almost nothing.
- dnh44 6y ago
  That's only if you don't include the cost of actually building the digital marketplace and the free developer tools and the actual devices.
  - camgunz 6y ago
    Which you pay for w/ your $99/yr. dev fee.
    - dnh44 6y ago
      Xcode is free without the dev fee. And a years worth of app reviews for an active developer costs a lot more than $99.
      - camgunz 6y ago
        Ugh, you need to pay the dev fee to get your app in the app store, which is the thing we're talking about. Good grief.
        dnh44 6y ago
        Yes and it cost apple money to perform app reviews each time the dev updates the app. It's a trivial amount of money for access to the marketplace.
        camgunz 6y ago
        Yeah it’s almost as if devs getting their apps onto iOS makes it more valuable and dumps profit onto Apple’s balance sheet.