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I feel that 25% markup is a "reasonable profit"
Posted by Bill Homer (more from Bill Homer) on Wed, 20 Jun 2012 16:31:30
In Reply to: Re: What do you consider to be a "reasonable profit"?, davidgmills, Wed, 20 Jun 2012 13:05:14
We were told that Chad made $85 on a part that he paid $340 for ($425 sell price plus $25 to ship); this equates to a 25% markup, which is not unreasonable for a rare (and seldom used or needed) part that Chad had sitting on his shelf gathering dust for some length of time, as SAAB had not been shipping these parts for quite a while. This part is obviously not a "commodity item" (like drinking water or gasoline) if you had to search far and wide before you found one. I also didn't see any National Guard surrounding what's left of my local SAAB dealer (now a Chevy dealer), and I didn't note any state of Civil Emergency last week.

You wrote: "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." I completely disagree - this was a verbal contract entered into by two competent adults, no civil emergency and no coercion, no undue duress. If you could have obtained the part locally, why didn't you?

I just had run out to pick up a prescription at Walgreens for a family member who needed some pills, and paid a lot for it. Now I find that Walmart has the same generic pills for $4 - do you think that Walgreens should take back the unused pills if I go get some at Walmart? That's similar what you are asking for.

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