Quote:
Originally Posted by nfotiu
A quick Google search says that hot tub dealers typically strive for a 40-50% profit margin.
Taking the 40% margin, if they were selling for 16k, and now 20k, it is likely their cost went from $9600 to $12k.
If the market is scarce, and the dealer knows that they can sell it now for $20k easily, then I'm definitely siding with the OP here on the ethical side. Although, it does all comes down to what is actually in the contract and if the price is guaranteed.
There are plenty of examples of businesses taking advantage of scarcity caused by supply chain issues to maximize profits. PC video cards being one such example.
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Sure, now imagine they have a fraction of their inventory they usually sell. Building lease cost hasn't changed. Sewer, gas, electrical bills haven't changed. I imagine they're still paying their phone bill, maintaining their website, paying an accountant at least annually. Somebody is being paid to do their books. Still paying property taxes. Still paying insurance. They've had to keep at least some staff around so they can ensure future sales. So even if their margin is 500%, if they have no product to sell - or not enough to keep the lights on and surely not enough to be taking losses - it's completely moot what their margin is in a perfect world based on your Google search that may or may not even apply to a typical Calgary business.
Like, dude, you're displaying a humorously basic understanding of small business finance that may have been relevant in any year prior to 2020 and applying it to a totally different environment and set of circumstances in 2022. The last business I'd want to be in right now is one where there's demand and no supply. And the supply that does trickle into your store arrives with a cost in excess of the cost you were expecting when you placed your order a year and a half prior.
If customers can't understand that, who needs enemies?