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Michael A Terrell Michael A Terrell is offline
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Default Running an empty microwave oven

James Wilkinson Sword wrote:

Let's say I have a shop with shelf space for 500 microwaves. If the
expensive ones make me £50 and the cheap ones make me £10, I ain't
gonna sell the cheap ones.



You aren't going to sell much of anything. People will go elsewhere
to by their microwave, and take their other business with them. First of
all, it would be foolish to put out 500 units on retail shelves.
Secondly, a lot of people who buy high end items don't go to a retail
store. They call a service company, tell them what they want. It is
delivered, and installed. The old one is hauled off as part of the
price. The seller's reputation is on the line for quality, so most of
the profit comes from the labor, not the markup.

I just bought a new microwave. It was a high end model that was
closed out for $60. The original price was $160. How much profit was
lost after that $100 discount?

BTW, that is the first new microwave that I've ever bought. I've
used them for 35 years, and I only paid $2 for a good used one, once.
The rest were repaired, mostly with used parts.

Another example of silly marketing. I worked at a TV shop as a
teenager. They sold new and used Color TVs, and new B&W, but no used.
The owner gave me all the B&W trade ins that I sold from my home. I sold
more TVs than he did, and most weeks I sold more in used B&W than he did
in color sets.