If a guy goes into CPU in 1997 and buys a mid priced PC, a printer, monitor, cables, paper, ink cartridges. He spends $4200
Today, the guy goes in and buys exactly the same stuff plus an extended warrenty, training, and Quicken. Spends $3500.
problem is the person buys in 1997
If a guy goes into CPU in 1997 and buys a mid priced PC, a printer, monitor, cables, paper, ink cartridges. He spends $4200
Today, the guy goes in and buys exactly the same stuff for $2100.
assume the margin is the same. the probelm arises that profit is now cut in 1/2. unless you sell 2x as much merchandise, profits and revs suffer. why sss are critical in the computer biz.
granted prices do not fall this fast, and this example is only used to illustrate a point.
(this disclaimer was deliberately placed where no one would read it) |
