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Old 10-06-2011, 01:01 PM   #7
Mike L
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Hi BK,

I don't want to denigrate your hard work in collecting these figures, but I can't see how you can possibly reach any conclusions from them.

All you have done is to add up the retail prices of the components. That's not the slightest bit relevant to the cost price of the product, for two reasons:

1. There's no way Amazon is going to pay anything remotely like retail prices. They buy in huge quantities, and the prices they pay will reflect this.

2. On the other hand, you have ignored all the other costs involved in manufacture and distribution: labour costs, plant and equipment, research, marketing, packaging, transport, ... etc.

It's just possible that these two discrepancies will cancel each other out, but you can't know that, so any conclusions you draw can only be a guess.
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