A Case Study In Retail Markup
What does this mean?
Wirefly pays more than $19.99 for these phones. When an authorized retailer sells a line Verizon reimburses their subsidy on the phone plus a commission after the return period is over.
Lets say that wirefly paid the retail price of $560, and they charged their customers $20 and Verizon reimbursed the subsidy listed on their website of $350. That would mean wirefly would lose $180 on every droid they sell minus their commission. What is more likely is that the additional $180 the consumer is paying on the Verizon site is pure retail markup.
So if we subtract the difference in consumer responsibility from the retail price, that brings the wholesale cost down to at most $379.99. Subtract the consumer respons...
(continues)
Wirefly pays more than $19.99 for these phones. When an authorized retailer sells a line Verizon reimburses their subsidy on the phone plus a commission after the return period is over.
Lets say that wirefly paid the retail price of $560, and they charged their customers $20 and Verizon reimbursed the subsidy listed on their website of $350. That would mean wirefly would lose $180 on every droid they sell minus their commission. What is more likely is that the additional $180 the consumer is paying on the Verizon site is pure retail markup.
So if we subtract the difference in consumer responsibility from the retail price, that brings the wholesale cost down to at most $379.99. Subtract the consumer respons...
(continues)
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I'm not going to dignify any more of your economic ignorance with relevant discussion.
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hmmmmm.....
part of the post is missing....
the whole first part
i wonder if it was too long?
perhaps edited cause it had links to buy phones on verizon and wirefly?
or possibly i didn't get it all copied when i moved it from my document i typed it in?
I will fix it tomorrow
the top part compares pricing of the moto droid btwn verizon.com and wirefly, so it it doesn't seem to make sense at all, that's what these numbers are about.
part of the post is missing....
the whole first part
i wonder if it was too long?
perhaps edited cause it had links to buy phones on verizon and wirefly?
or possibly i didn't get it all copied when i moved it from my document i typed it in?
I will fix it tomorrow
the top part compares pricing of the moto droid btwn verizon.com and wirefly, so it it doesn't seem to make sense at all, that's what these numbers are about.
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I got my Moto Droid from letstalk.com for !!ONLY!! $20, I was a brand new contract for Vzn, came over from ATT.
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deepskyblue said:
part of the post is missing....
I will fix it tomorrow
And you believe this will give you credibility because.......?
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As long as the folks are OK with the profit they're receiving, and customers are OK with paying it... is there an issue here?
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if you really want to know how it works just ask please, these threads are driving me nuts.
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I'm not even sure what the point of this thread is...I think you should realize these two concepts and re-write it.
Mark up- The price a customer pays is higher than what the retailer purchases the product from the supplier for. That mark up=profit.
Subsidy- The price a customer pays is less than what the retailer purchased the equipment for generating a loss for the retailer until manufacturer/carrier spifs and commissions pay back the retailer netting them a profit from the transaction.
I think you are throwing around too many big words/concepts for your post to have a clear message of any type.
Mark up- The price a customer pays is higher than what the retailer purchases the product from the supplier for. That mark up=profit.
Subsidy- The price a customer pays is less than what the retailer purchased the equipment for generating a loss for the retailer until manufacturer/carrier spifs and commissions pay back the retailer netting them a profit from the transaction.
I think you are throwing around too many big words/concepts for your post to have a clear message of any type.
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It hates you.
Seriously.. you understand NOTHING about subsidies or markup.
You do realize that inflating the retail cost of a phone will destroy their taxes more than any additional income would cover right?
No, that's right.. you don't.
Seriously.. Stop talking
Seriously.. you understand NOTHING about subsidies or markup.
You do realize that inflating the retail cost of a phone will destroy their taxes more than any additional income would cover right?
No, that's right.. you don't.
Seriously.. Stop talking
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1: ETF Does NOT equal subsidy.
2: The retail on the Droid is not 360. Far from it.
3: Verizon (and retailers) make the money on the plan, Verizon doesn't give retailers ANY of the ETF money, they get a set commission based on the RATE PLAN and FEATURES not the cost of the device.
2: The retail on the Droid is not 360. Far from it.
3: Verizon (and retailers) make the money on the plan, Verizon doesn't give retailers ANY of the ETF money, they get a set commission based on the RATE PLAN and FEATURES not the cost of the device.
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