🚀 go-pugleaf

In <frain.716570605@depot.cis.ksu.edu.cis.ksu.edu> frain@cis.ksu.edu (Jerry Frain) writes:

:anthony@csd4.csd.uwm.edu (Anthony J Stieber) writes:

:> They charge $2000 for a computer that costs $400 to make.  It sounds
:> like they make a lot more money on their hardware than software.

:This is only blatantly obvious, since every computer manufacturing
:company in the world does it.

This is a normal ratio for any manufactured product.  The retail
price is generally 5 times the cost to manufacture.  I believe the
PC computer industry is generally less than this because of
extreme competition and low margins (and this explains why so
many retailers go out of business).  Charles Tandy put it simply.
``If you don't have the gross margin going in, you won't have any
profit coming out.''.

Bill
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