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<blockquote data-quote="MacInWin" data-source="post: 1624127"><p>My wife runs a home business. She sells product over the Internet. Her wholesale costs (what she pays for the product) is about 50% of what she ultimately sells it for. She has other operating expenses, (labor, packaging, processing, shipping, spoilage, etc), that result in about 10% net profit overall. If you think of the Apple distribution in the same way, that they are buying product from the creator to sell to the public, the 30% is actually well below that typical of physical product. Now in my wife's case, she has to stand behind the product, not the wholesaler who sells to her, so in Apple's case they are transferring that support to the developer, which may be part of the reason that Apple's cut is only 30% and not higher.</p></blockquote><p></p>
[QUOTE="MacInWin, post: 1624127"] My wife runs a home business. She sells product over the Internet. Her wholesale costs (what she pays for the product) is about 50% of what she ultimately sells it for. She has other operating expenses, (labor, packaging, processing, shipping, spoilage, etc), that result in about 10% net profit overall. If you think of the Apple distribution in the same way, that they are buying product from the creator to sell to the public, the 30% is actually well below that typical of physical product. Now in my wife's case, she has to stand behind the product, not the wholesaler who sells to her, so in Apple's case they are transferring that support to the developer, which may be part of the reason that Apple's cut is only 30% and not higher. [/QUOTE]
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