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Re: What do you consider to be a "reasonable profit"?
Posted by davidgmills (more from davidgmills) on Wed, 20 Jun 2012 13:05:14
In Reply to: What do you consider to be a "reasonable profit"?, Bill Homer, Wed, 20 Jun 2012 11:31:11
Well we have all spent a lot of time on this, I am afraid. I don't know what Chad spent for the part, I don't know how long he kept it in stock. He is entitled to a reasonable profit as I have said many times, but not an excessive profit in times of scarcity. What is excessive is based on a percentage of the normal market cost. He knew the product was scarce. We discussed it. In fact he used that as an excuse to raise the price to Anil over what he even quoted me.

See my response to Jason's "I am a bit baffled for more discussion on the duress and scarcity issue.

The crux of the matter in this case is whether the charges were excessive given the scarcity of the product and Chad's knowledge of the scarcity.

posted by 75.66....
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