Signs of (Olympus) Life

Started 2 months ago | Discussions thread
Danielvr Veteran Member • Posts: 5,345
Re: Pulling out of N-America?

If the sales operation had a profit per unit of $100 (they'd be lucky to achieve that!) they have a "profit" of a $1 million. Can they pay for all the above out of that?

You're not looking at this from the manufacturer's pov. To them, the question is: Do we build (say) 400,000 cameras for EMEA, Japan and rest of Asia/Pacific, or do we build 500,000 and cater to the Americas as well.

The marginal costs at which those additional cameras are built are very low, I'd think around $125 each mainly in parts, labor and transportation. But they also help save money thanks to greater economy of scale.  So, to Olympus, a $1000 camera in N-America might represent a potential gross profit of closer to $900 if sold directly or $700 if through resellers.

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