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We don't know Newegg's margins. Perhaps the board cost them $450 in the first place so paying $100 to repair it so that they could sell it for $500 wouldn't mak
by albio 5y ago
We don't know Newegg's margins. Perhaps the board cost them $450 in the first place so paying $100 to repair it so that they could sell it for $500 wouldn't make sense.
- mijoharas 5y agoI mean, it would make sense. You have a broken product. You may have already spent 450$ to get it, but that's sunk cost. You have 3 options: 1. you pay $100 dollars to have a working product (you can sell it for $500). 2. you can engage in fraud and sell this broken product. 3. you write off this loss. if you discount committing fraud, then the 100$ repair fee definitely makes sense.
- freeAgent 5y agoYes, unless they thought the probability that they'd be able to sell the board for $500 was less than 25%, it would have made sense to pay for the repair.