Quote:
Originally Posted by The_Dude
I used to work at Future Shop a long time ago. I had a guy who worked in Burnaby at head office. He said that the computer "cost" is way above the real cost.
I can see that. Good strategy. I remember I got cost + 10%.
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Yeah I worked at Future Shop many years ago and there were some items that are sold below the posted cost + 10. Computers and printers were the most common items that fell into that category. The salesperson is supposed to make commission off those items but selling the product plan and accessories. Cables had the biggest mark up. I remember paying <$2 for a $15 USB cable at my employee price and <$10 for a $70 fibre optic cable. The product replacement plan is pure money. A vast majority of the people never exercise the plan before it expires.
I doubt that the cost in the computers at the stores are the true cost that the corporation pays for the products. My understanding was that the organization also owned the distributor that "sold" the items to the stores and that should be the cost they had in there systems. So I highly doubt that the overall organization truly loses money on any sale with the exception of things that aren't selling and are blown out at break even or loss or door crasher items to get people into the store.