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Comment: Profit margins (Score 1) 380

by adorai (#20421917) Attached to: Big Box Store Reps Push Unnecessary Recovery Discs
It's all pretty simple and boils down to relative profit margins. Whatever people might think, the actual operating profit to a Wal-Mart or Best Buy on PC hardware is not more than 2-3%, i.e. about $15 maximum for the majority of PCs sold. The profit margin on a $40 recovery CD is pretty much $40. Therefore, they should push the recovery CD as strongly as possible, until the point where they are so aggressive that they are losing 1 in 3 PC sales due SOLELY to their pushing of the CD. They haven't reached that point yet.

One of the most overlooked advantages to computers is... If they do foul up, there's no law against whacking them around a little. -- Joe Martin

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