Quote:
Originally Posted by Steve
Not a cheap shot intended here but I think you fail to understand the costs associated with even this type of business. JEGS is still spending money on promotion of that item along with thousands of others, in addition to the staff necessary to process that order which includes entering it and placing the PO on the manufacturer. There is also the customer service person you spoke to on the phone, and let's not forget the building they are in with its HVAC costs, the costs of parts they do warehouse, the cost of money for that inventory, and the list goes on. While a business model where all you are doing is handling the money (i.e., drop shipments) is one of the best in my book there is still a lot of costs associated with it. It is quite possible they are paying the manufacturer a large portion of the shipping and handling fee they charged you.
I hope this helps you see more of the picture.
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You are correct. We have had products in the big catalogs and it is all part of the Co-op $ and the deals made with the manufactur is negotiated differently depending on volumne, etc.
