APT MotoVox Group Inc. (MTVX)

[Moto-MOMO]

$MTVX So by your analysis my local Cadillac Dealer is pocketing $25,000+ on each and every car sale. Don't Think So.....

Bigger Ticket Items Have Considerably Less Markup in Retail.

It’s a common misconception that retailers make piles of money off expensive items. They don’t. If you go to Best Buy and purchase a $600 television, they’re likely making 10% (probably less) on the item, and this is before they pay 2.5% to process your Visa payment. Large-ticket items, especially electronics, tend to have much smaller margins.

Accessories, on the other hand, enjoy HUGE markups. Say you need to buy a new HDMI cable to go with that massive flatscreen you just bought, which you’d likely pay $30 for in store. You’re probably not even thinking about the cost of the cable; what’s another $30 on top of the $600 you just spent? Well, think again. That cable likely cost Best Buy $5, which translates into a 500% markup.

With just two or three cable sales, Best Buy likely makes JUST as much money as they do on a $600 big-screen sale! How crazy is that! And I guarantee they move a lot more cables than big-ticket TVs.

So, your two choices are:

Big-Ticket Items: 10% profit margins
Accessories: 100% to 1,000% profit margins

http://www.ecommercefuel.com/anatomy-of-profitable-niche/