I Perdict on 16 June 2008
| bumidan said: @ I Perdict Yes, I was just using PS3 as an example - as this is a video game site. However, even if it was for any Blu Ray player (eg. Samsung), the calculations should still be the same. Therefore, for any other Blu Ray Player - Walmart must be making at least $94 for them to BREAK EVEN in this deal. So $94 is the actual dollar margin on any Blu Ray player for this promo to BREAK EVEN for Walmart. Because if it is not, why do it? Wherever that $94 comes from, i don't know - but it has to come from somewhere, and most likely the manufacturer is shouldering most of that. |
You're thinking too much about it.
Promotions go as sunk costs a lot of the times
Wal-mart is a huge company and can afford it
Also you are taking into account wal-marts profits are a set number
Wal-mart sells things that are more profitable. (Ex: Ice, slushies, gum balls, 25 soda, wal-mart brand items.)
Do they charge intrest on lay-a-way? (if so that interest is all profit)
