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Originally Posted by rlauzon
Yes, you end up paying for it - but not 100% of the cost. The dealer only passes on part of the cost to keep competitive.
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The consumer ends up paying for it (at least partially), but it's not explicit (like sales tax) and it's not 100% passed on.
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I respectfully disagree, rlauzon. For a business, 100% of the revenue comes from the customers, therefore, 100% of the costs have to be paid with money that comes from the customers -- that includes the owner's 'salary.'
If the business cannot bring in enough money above and beyond the costs for the owner to make a living, then he stops doing that business and goes on to something else. The pressure to stay competitive, has to be balanced against the pressure to eat.
Of course, most businesses lose money in the beginning, and you're quite right that the owner might accept a lower 'salary' than he'd consider ideal, but if it drops
too low, he
can't afford to keep at it, precisely because he
does have to pay that mortgage, and buy milk and eggs, and put gas in his car....
