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These numbers make no sense to me. If you typically have 1900% gross profit margins on USB cables, why isn't everyone making USB cables?
by patrec 4y ago
These numbers make no sense to me. If you typically have 1900% gross profit margins on USB cables, why isn't everyone making USB cables?
- ac29 4y agoThats a 95% gross margin, and in reality the manufacturer is not going to be selling at retail prices. A lot of the available margin is going to go to the retailer.
- rexf 4y agoThere are countless companies making USB/similar cables. They are a commodity and it's hard for them to stand out. So I use brand (Anker, amazon basics, Apple, etc) and store (amazon.com, best buy, target, etc) to narrow down the countless cable options.
- unnah 4y agoThose numbers are marginal costs only, the manufacturers also have substantial fixed costs. Anyhow, there already are lots and lots of USB cable brands, although I suppose many of them are just rebranding bulk cable products.
- rcxdude 4y agoThis isn't a super unusual markup. There's a huge amount of other costs which bring the overall margin down (e.g. even if you just looked at the markup retailers use you'd think everyone should be in retail or trying to bypass them, until you look into the cost of warehousing, warranty returns, unsold product, 'shrinkage', etc).