LogFAQs > #948023312

darkphoenix181 posted...

Paragon21XX posted...

It's almost as if MSRP is a thing that exists and people get angry if someone tries to sell something far above that number.

MSRP is a just construct that allows a handshake between them and another entity to both rip you off.

So you are somehow ok with them charging you double for some weird abstract reason.
But if someone else wants a piece of that pie, you are upset.

I know why. It is because you were raised and trained to be ok with MSRP.

Production cost only covers the cost of materials and maybe labor. It does not take into account all of the overhead expenses involved in manufacturing (from the source of your own image: "Notice that we dont take into account other costs like marketing, research and development, distribution, staff, packaging, or software, so the manufacturers wouldnt earn that much profit from their products")

all of which probably adds another 50% or more to the real cost of the device and now the manufacturer only has a 20% profit margin or less, part of which is allocated to the retailer (usually 10% of MSRP).
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Hmm...