Lucrative service revenue, which can often represent a multiple of the initial purchase price and bring in a net profit margin well above the companywide 11% enjoyed last year.
The sales person will help them make that purchase, because unlike HD DVD there is enough margin in the product to motivate retailers to sell the item.
Generic drugs help drugstore profitability because they provide a wider margin between the cost for the pharmacy to purchase the drugs and the reimbursement received.
Examine the market basket of goods or services they purchase over a six-to-twelve-month period and then calculate the margin on each basket, keeping track of discounts and price concessions.