Good information! Nice post, Pete. It is amazing how much combined knowledge there is on Bird Forum. Interesting that you think the margin on the Tracts is higher than expected.I'm posting this not as a representative of Opticron, but based on my long term knowledge of the UK IT and consumer electronics market, hence no signature.
An independent or small chain UK retailer supporting a bricks and mortar store (and perhaps with some internet sales) will need between 20% and 35% gross profit to survive, depending on staff to turnover ratio (staff being typically the biggest fixed cost).
A web retailer can probably live on between 5% and 15% depending on turnover and how much cost is backed off to suppliers e.g. delivery, warehousing etc.
Some retailers will claw back margin in the way of marketing funds, sales target incentives or other costs of sales charges (Amazon is very good at this with things like no returns discounts and charges for failure to comply with a myriad of labelling, packaging and delivery requirements).
Suppliers may also offer a range of incentives to hold stock - buy x, get 1 free, x% off all orders over £x - or to sell more of their product - salesman sells Binobrand 8x42, gets £20 in Argos vouchers, increase sales by x% this month, get x% additional discount etc. etc.
So a headline profit margin of, say, 25% on the hardware can increase for those prepared to invest. Similarly, the margin skimmed by internet only suppliers gets bolstered by winning more and more business.
In theory, the factory -> brand owner -> end user model should deliver the chance to provide a more competitive end user price than factory -> brand owner -> dealer -> end user model. But if your purchasing power is relatively lower, then your cost price is probably higher so this may erode some or all of that advantage.
HTH
Pete
P.S. With my Opticron hat back on, the Tract price is higher than I'd expect given the business model they have.
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