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<blockquote data-quote="MacInWin" data-source="post: 1893018" data-attributes="member: 396914"><p>My wife ran her own business for a while. There is much more to it than just the difference between wholesale and retail pricing for a retail store. Part of that difference pays for the building (rental or mortgage, utilities, property taxes), employees salary/benefits/taxes, income taxes (both federal and state, including some additional payroll related taxes), administrative overhead, etc., etc., etc. In the technology area, it also has to cover research and development costs. If it's a publicly held company, the stockholders (owners) have an expectation of a return for their investment, so that's another factor in the pricing. It may seem to be &quot;gouging&quot; to pay X for wholesale and sell for 2X retail, but the actual profit is pretty thin at that for many businesses. I don't care what the wholesale/retail ratio is. What is key for me is whether the price I pay is &quot;reasonable&quot; for the value received. Life is much easier that way!</p></blockquote><p></p>

[QUOTE="MacInWin, post: 1893018, member: 396914"] My wife ran her own business for a while. There is much more to it than just the difference between wholesale and retail pricing for a retail store. Part of that difference pays for the building (rental or mortgage, utilities, property taxes), employees salary/benefits/taxes, income taxes (both federal and state, including some additional payroll related taxes), administrative overhead, etc., etc., etc. In the technology area, it also has to cover research and development costs. If it's a publicly held company, the stockholders (owners) have an expectation of a return for their investment, so that's another factor in the pricing. It may seem to be "gouging" to pay X for wholesale and sell for 2X retail, but the actual profit is pretty thin at that for many businesses. I don't care what the wholesale/retail ratio is. What is key for me is whether the price I pay is "reasonable" for the value received. Life is much easier that way! [/QUOTE]

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