SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc.
DELL 126.42+2.8%Dec 19 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: stock bull who wrote (52921)7/22/1998 12:56:00 AM
From: Chuzzlewit  Read Replies (1) of 176387
 
Stock Bull, I don't know how many times you guys need to be hit over the head before you get it. ASPs and profit margins are meaningless by themselves! Didn't Michael Dell point out that the gross profit margin in mouse pads is higher than computers?

Gross Profit = Units Sold * Gross Margin * ASP

The only thing that counts in this calculus is gross profit. ECON 101 ---> Maximize Profits!

It does not say Maximize ASP, or maximize Gross margin or maximize units sold.

If you want profit margin look to another segment. You want high ASP buy BA. You want growth? Forget GMs and ASPs and invest in Dell.

TTFN,
CTC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext