3 ms·
Another possibility is they're trapped by other agreements that prevent them from voting with their wallet. The obvious example is predatory MSPs where they ta
by donmcronald 6y ago
Another possibility is they're trapped by other agreements that prevent them from voting with their wallet.
The obvious example is predatory MSPs where they talk their customers into certain printers and sell them ink. A 10% commission on a $600 set of toners is easy money compared to a $150 set of toners where a 10% ($15) commission isn't even possible.
The other less obvious one is franchises. Part of the franchise agreement will include having corporate be the supplier for all the lease hold improvements, all the furnishing, office supplies, etc., plus all of the ongoing consumables. It's sold as consistency to protect the brand, but a lot of it is about increasing profits for the corporate side at the expense of their franchisees. I've seen it first hand.
In the case I saw, I knew someone who bought into a franchise and asked me about some of the tech stuff. The franchise sold them cheap products with too much markup, but the most egregious was the printer. They were sold a cheap inkjet printer and they were buying 2-3 sets of cartridges per month. That's $3000-4000 per year (CAD) for printing. It may not sound like much, but this was a small business where they were hoping for $30k-$60k of (owner absent) annual profit.
The reason behind that is twofold. First, the franchises are easier to sell because the upfront costs are lower and the purchaser usually doesn't realize the trade-off is higher ongoing and total (lifetime) operating costs. The second is because the franchise supplier is making money off of those higher ongoing costs. It's awful for the franchisees and many of them don't realize what's happening until they're all-in.
TLDR; It's predators all the way down :-(