Reply to post: Re: Not just business

Margin mugs: A bank paid how much for a 2m Ethernet cable? WTF!

Dave Bell

Re: Not just business

There might be a quality difference between the two cables, but that is excessive...

The old rule of thumb was that the guy who sells you something bought it for about half the price, and has to pay all his costs from the difference. One of the things the wholesalers did was "breaking bulk". They'd buy a big consignment of something, and sell small packages to retailers.

A 10% margin is tight, but possible. It's what's left after all the costs. I am not sure if this source understands the difference between margin and mark-up, but it doesn't excuse some of the crazy purchasing decisions reported.

Incidentally, there are other cases where prices at the other end of the chain are used. One obvious instance is reporting the value of drugs seizures as "street value". When the stuff was hidden in that container intercepted at the border, nobody paid anything like that much.

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