In Reply to: RE: Wow interesting. posted by rustybutt on October 27, 2015 at 13:49:29:
Actually the revenue would be $400,000 on 8 $50,000 tables. The net profit would probably be between 20 and 30% of that so less than 120K. But that would hopefully be all his because by then the cost of the merchandise plus the overhead (rent, salaries, etc) will have already been taken out.
If you think about it, it's actually not a bad deal for the dealer. 80 to 100k annually and all he has to do is sell 8 turntables a year... lol.
If he's a smart dealer he is either alone, or has only one or two other people working for him. And if he's really smart, they are on commission. 10% sounds good to me. They get a salary, but they better cover that salary (sell enough to pay it) and they better sell more because the salary is meager.
I'll tell you what... if I was a small volume manufacturer and I saw my product getting sold for almost 4 times what I wholesale it for, you can bet I would go to direct sales right away!
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Follow Ups
- RE: Wow interesting. - MannyE 15:19:40 10/27/15 (0)