It could be if that yields more profit in the end.
For example,
It costs the company 10 dollars, and that 100 out of 110 people will purchase the upgrade for $20. That is $100 profit. Maybe the company also finds that 80 of those 110 people would also buy the same upgrade for $150 and yields like $11,200 in profit.
So it makes sense for the company, the persons running it, and the investors in the company to have the markup as high as it will maximize their profits.
> lack of profit when I said "anywhere near".
Sorry, to me I interpret markup to be assumed as double the cost but would not consider that "near" cost.
Well "anywhere near" is a wider range than "near". I think.
And absolute profit matters too. For a cheap enough part, a higher percentage is okay.
> It costs the company 10 dollars, and that 100 out of 110 people will purchase the upgrade for $20. That is $100 profit. Maybe the company also finds that 80 of those 110 people would also buy the same upgrade for $150 and yields like $11,200 in profit.
> So it makes sense for the company, the persons running it, and the investors in the company to have the markup as high as it will maximize their profits.
Yeah, and screw them.
Nickle and diming is bad and anyone doing it should feel bad.
For example,
It costs the company 10 dollars, and that 100 out of 110 people will purchase the upgrade for $20. That is $100 profit. Maybe the company also finds that 80 of those 110 people would also buy the same upgrade for $150 and yields like $11,200 in profit.
So it makes sense for the company, the persons running it, and the investors in the company to have the markup as high as it will maximize their profits.
> lack of profit when I said "anywhere near".
Sorry, to me I interpret markup to be assumed as double the cost but would not consider that "near" cost.