So I had a quick look at a display of digital cameras today and there was a sign underneath them that I thought was very odd. It was a picture of an open hand with a couple bucks worth of change in it. The caption read “The profit margin on digital cameras is this bad”. First thing that popped into my head was, what the hell? Then I began to wonder if it was to try and stop people from haggling or to guilt people into paying more than the sticker price. Or perhaps they had a no tips jar at the cash register policy. Has anybody else seen this sign? Or any other odd signs at a retail establishment?
I briefly worked at a store that sold televisions, vcrs and other electronics…the sad truth is there really isn’t that much profit margin and the owner of the place was constantly on the phone bitching to Sony, or Panasonic, or Mitsubishi or whatever about prices advertised at other, larger, chains that were LOWER than what he paid wholesale. He would always get the difference refunded to him, but it pissed him off that those big chains got all the deals and he was forced to read those ads to make sure he wasn’t getting screwed. So yeah, my guess is there isn’t a huge mark up on digital cameras either, though I am not sure why the sign. Maybe they did get tired of people trying to haggle down the price.
Selling home electronics is a very cutthroat business.
Thanks DMark I had no idea it was that bad for smaller electronics retailers.