08-06-2009, 11:33 AM
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#35 (permalink)
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A True Z Fanatic
Join Date: Mar 2009
Location: Maryland
Posts: 1,095
Drives: 370z Blk on Blk 6MT
Rep Power: 20
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I think people are mixing overhead expenses and profit together. Everything a company sells has overhead attached to it as well as profit. If a manufactuer charges $1000 dollars for an exhaust and is costs them $500 dollars to make it...is that 100% profit? No..unless they have zero overhead. They have to pay the bills: 1)salaries, 2) utililities, 3) leased spaces, 4) R&D, 5)benefits for employees, etc..the list goes on and on and on. These are all attached to the sale of any product. Its just the cost of doing business. I work for a government contractor..I am a "product" to the government. They pay my company TWICE what I make.....and yet my company only see an 11% profit on my employment as a direct charge to the government as specified by the contract. The rest goes towards benefits, my office space, computer...everything I need to function.
This is why online wholesalers can sell stuff so much cheaper than Best Buy....they have almost no overhead to recoup.
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