Tariffs trip up the all-American RV industry

pianotuna wrote:
Hi,

Did the item cost me $10? No. It cost me $12.50. If I operated as you suggest and did not mark up from my cost price I'd soon be out of business. Plus there may well be extra office work so in the real world I might have to mark up the item even more.

Now if I were selling costume jewelry, the mark up would be 10 X the cost price. So if an item cost $1, it would be sold for $10.00.

schlep1967 wrote:

So as a small business owner you are not only passing along your increased costs, you are profiting 100% from the increased costs. Your price should be $20.00 + $2.50 = $22.50. What is the other $2.50 for? Pure greed.

Back when dinosaurs roamed the earth and I graduated from college, getting a job that paid $20,000 a year was a dream position. Today, the drive thru cashier at Micky D's makes more than that. Merchants make their income from the profits on their sales. Their expenses will increase over time. The buying power of their income will decrease over time due to inflation. If they don't periodically increase their profits they will end up like those dinosaurs ... extinct.