how little is little?

[heffer]

everyone says computer stores make very little profit on each piece of hardware they sell. does any know what the average profit is on a cpu, or on a motherboard? i'm talking about retailers of course, not the makers.

a recent study showed that the profit margin of tobacco was roughly 19% and water utilities was about 10%, but they didn't mention computer hardwares. hmm

 

[peterhuang913]

Depends on the buyer, even 50% profit is possible.

 

[KSoD]

As Peter said it varies. Circuit City makes more of a profit than NewEgg. Best Buy is also heavy on the profits. I dont think they get as high as 50% though. When i worked at Wal-Mart the highest markup on PC stuff was only 23%. Best Buy and Circuit City are more expensive but i dont think they hit 50%.

Helps to work in Retail to know some makrup %.