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Richardl60
Senior Member Joined: 04 Nov 2014 Location: Yorkshire Status: Offline Points: 1468 |
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I suppose the concept of 'mark-up' is a term often used and does need to be related to accounting and economics.
None of us like to feel we are being ripped off whether car, utilities, petrol or indeed hifi. What is the mark up on a bag of chips at a local fish and chip shop (in the the U.K.)? Very high if you include the need to cover transport, labour, profit, tax, power etc. In the case of importing goods, there may be taxes, import duties, foreign exchange fluctuations, shipping costs and a need for a profit element -these will depend on many factors including volumes involved to make the venture worth while. I wouldn't want to set up importing hifi for £1,000 a year as my prime job. The examples quoted here do appear 'high' on the face of it though. One other factor is that the importer is likely to have a duty to repair, service and provide some sort of after sales service, none of which are free. I think fairness is the key, as I found with my new car order just placed - my local dealers discount was £0 whilst a bit of ferreting around brought over £3,000 of the local dealer price (10%). We do live in a commercial world fortunately in the U.K. grahams products are very reasonably priced And suspect the same applied overseas if direct sales are involved but if through an importer sure the price would be a lot higher. |
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