[geeks] FYI: CompUSA is offering OS X 10.5 for $99 (after rebate)

[Joshua Boyd]

On Sat, Oct 27, 2007 at 03:26:16PM -0700, Rick Hamell wrote:
> > How much profit margin does a local computer store need?  I would expect
> > that on average they would shoot for 30% of the sales price to be
> > profit.  At least, that is the markup for plumbers, mechanics, and
> > general contractors from what I can see.
> 
> When I worked in a computer shop it was 13%. And we were still higher priced
> then most other local places. One place cut their profits down to 7%. They
> moved about $60k of product a month until their supplier got greedy and cut
> their credit line.

So, how in the world can the local computer shop be making 13% or less
margin on items sold unless they are buying from the most brain dead of
sources?  

They used to at least be competitive for things like boxed sound cards,
but now the only reason to go to them is either immediate desperation,
or you are looking for cables, screws, or fans that aren't worth
ordering, even if the shop is charging 3x online prices.