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Yeah, I owned a retail store (in the same area code as you coincidentally). Even though we marked everything up 80-100% our profit margin after expenses would b
by mthoms 5y ago
Yeah, I owned a retail store (in the same area code as you coincidentally). Even though we marked everything up 80-100% our profit margin after expenses would be 2-3%. This is typical. If your retailers are doing >10% profit margin then they are extremely lucky.
Apple is making upwards of 90% profit margin on the App store. With zero inventory risk and no competition. In the real world, those kind of margins would attract immense competition... which would bring those margins way down.
Anyways, for reasons that I'm sure you're well aware the App Store vs. brick and mortar retail comparison is pretty useless. I wish people would stop using it (though in this case I appreciate that you provided context for your response).
The question remains though - at what % would Apple's take start becoming unfair and how did you arrive at that number?