Group discussion > Do you have 6,500% markup on your products? Look who has...
Do you have 6,500% markup on your products? Look who has...
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Dan C. Rinnert
830 days ago |
When they talk about "costs", I wonder if they are including time into that equation?
As an example, I have a product which has about a 375% markup, if you calculate it using only the cost of materials. Once you figure in the time involved, it is a much, much lower markup.
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GT
829 days ago |
I have some pet peeves, too, about the price charged for some services. The article at the link provides some real food for thought!
But I do agree with Dan. When you are talking cost, there are at least two dynamics to consider: markup and net profit.
Markup is the dollar amount or percentage above the base cost.
Net profit is the dollar amount or percentage after every possible expense has been calculated in.
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Sumit Menon
829 days ago |
Yeah.. This was exposed by one of the newspapers here too.
It said, the cost involved for the carrier in the process of sending one text message is 1 paise. ( 100 paise = 1 rupee. 1 dollar = 46.5 rupees. You do the math.)
Prices have come down considerably after the expose. It came down from 50 paise (common rate) per message to 10 paise and lower. (DOCOMO has a scheme where you pay 10 paise per message for 60 messages in a month and everything you send after that is free. So, that's like $0.13 per month for unlimited messages.)
Sumit.
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