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<blockquote data-quote="Dristram" data-source="post: 2424539" data-attributes="member: 1639">It's funny you should say you're not a business guy because if you were, you wouldn't make this suggestion.&nbsp; <img src="https://cdn.jsdelivr.net/joypixels/assets/8.0/png/unicode/64/1f642.png" class="smilie smilie--emoji" loading="lazy" width="64" height="64" alt=":)" title="Smile&nbsp; &nbsp; :)"&nbsp; data-smilie="1"data-shortname=":)" />&nbsp;&nbsp; Here's why.If I buy the book for $23 and sell it for $26, I’ve made $3.&nbsp; Yay.&nbsp; But, I want to be a game store and have this book in stock for other gamers, so I would repurchase the item, so I will have to spend another $23.&nbsp; At that point, I’ve spent $46, and gotten $26 in return.&nbsp; I'm in the hole $20.&nbsp; If I want to make sure I have at least one copy of the book in stock, I will need to have sold that book 8 times to make $1.&nbsp; In other words, I buy 9 books at $207 and sell 8 at $208, making $1 profit. Lets look at this another way.&nbsp; Making $3 on a $26 book, is 11.5% margin.&nbsp; If that is the norm for all the products in my store, lets look how much I need to sell to pay my bills.&nbsp; My store rent is over $2k/month, but I’ll use $2k for this example.&nbsp; In order for me to pay rent, I’ll need to sell $17.4k/month just to pay rent, or over $208k per year.&nbsp; That’s just to pay rent!&nbsp; Hmmm $208k in sales to pay $24k in rent.&nbsp; Crazy!&nbsp; As I look at my other bills, it just gets uglier. (I hope I did my math right&nbsp; <img src="http://www.enworld.org/forum/images/smilies/nervous.png"&nbsp; class="smilie" loading="lazy" alt=":heh:" title="Nervous Laugh&nbsp; &nbsp; :heh:" data-shortname=":heh:" /> )BTW, if we are to assume that Amazon.com has it's own distribution center, like WalMart and other big corporate stores, that means it purchases its products at the &quot;distributor cost&quot;, so they are making a pretty nice margin even on such low prices.(-Brad DaedaOwner, Gamer's KeepeVacaville, CA</blockquote>

[QUOTE="Dristram, post: 2424539, member: 1639"] It's funny you should say you're not a business guy because if you were, you wouldn't make this suggestion. :) Here's why. If I buy the book for $23 and sell it for $26, I’ve made $3. Yay. But, I want to be a game store and have this book in stock for other gamers, so I would repurchase the item, so I will have to spend another $23. At that point, I’ve spent $46, and gotten $26 in return. I'm in the hole $20. If I want to make sure I have at least one copy of the book in stock, I will need to have sold that book 8 times to make $1. In other words, I buy 9 books at $207 and sell 8 at $208, making $1 profit. Lets look at this another way. Making $3 on a $26 book, is 11.5% margin. If that is the norm for all the products in my store, lets look how much I need to sell to pay my bills. My store rent is over $2k/month, but I’ll use $2k for this example. In order for me to pay rent, I’ll need to sell $17.4k/month just to pay rent, or over $208k per year. That’s just to pay rent! Hmmm $208k in sales to pay $24k in rent. Crazy! As I look at my other bills, it just gets uglier. ([i]I hope I did my math right[/i] :heh: ) BTW, if we are to assume that Amazon.com has it's own distribution center, like WalMart and other big corporate stores, that means it purchases its products at the "distributor cost", so they are making a pretty nice margin even on such low prices. (-Brad Daeda Owner, Gamer's Keepe Vacaville, CA [/QUOTE]

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