I'm going to guess and then go read it. My guess is they floorplan finance so there's minimal inventory cost. Nope, wrong. Only 100% markup? No big deal. But the reporters think a wire frame covered with ticking costs 500 bucks wholesale. The rest of the story is yada yada corporate acquisition spree with perverse internal incentives then a foreign buyer under investigation in South Africa. A sad story for main street.
I've read a longish article about this, I believe in The New Yorker, and it is totally fascinating.
ReplyDeleteI also read an article about that. I forget what it said, though.
ReplyDeleteI'm going to guess and then go read it.
ReplyDeleteMy guess is they floorplan finance so there's minimal inventory cost.
Nope, wrong.
Only 100% markup? No big deal. But the reporters think a wire frame covered with ticking costs 500 bucks wholesale. The rest of the story is yada yada corporate acquisition spree with perverse internal incentives then a foreign buyer under investigation in South Africa. A sad story for main street.
Bob Calder Yeah, that's what I think I read.
ReplyDeleteJewelry stores used to have a routine 500% markup.
ReplyDelete