September 15, 2009
What % profit do major chains (e.g., Circuit City, Best Buy, Macy’s, Kohls, etc) tuck in to the product cost?
npasplit asked:
Almost every week, it is very difficult not to see items from stores like Macy’s, Circuit City, Best Buy, etc that are on sale for 10 to 20% off. I wonder how much this typical 10-20% discount affect their profit for the specific product.
Almost every week, it is very difficult not to see items from stores like Macy’s, Circuit City, Best Buy, etc that are on sale for 10 to 20% off. I wonder how much this typical 10-20% discount affect their profit for the specific product.
I guess the “Sale!” price is very little compared to what the stores really tuck in to the original product cost from the factory/wholesale distributor.
I’m basing this on my conversation with an employee at a local REI who indicated that a $100 bike part can be sold for as much as $160!
Clyde
