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David M · 12-24-2006, 01:42 PM

After all that....I would say yes if you were selling something like diamonds, jewelry or some other sort of traditionally high profit margin product, but expecting to make enough of a profit to live off a low dollar item seems very questionable. The competition in all communications is fierce which means the margins have to stay low in order to to remain competitive. Nobody in communications is making big margins. Check the quarterlies if you want to see it for yourself.

http://www.smartmoney.com/marketmap/

You also have to ask, why would a company so easily offer a franchise? Could it be that the margins are so low that they do not think they can offer the product themselves and still make a profit?

12-24-2006, 01:42 PM	#11
David M Techphile. Join Date: Nov 2003 Location: San Francisco Bay Posts: 5,956	After all that....I would say yes if you were selling something like diamonds, jewelry or some other sort of traditionally high profit margin product, but expecting to make enough of a profit to live off a low dollar item seems very questionable. The competition in all communications is fierce which means the margins have to stay low in order to to remain competitive. Nobody in communications is making big margins. Check the quarterlies if you want to see it for yourself. http://www.smartmoney.com/marketmap/ You also have to ask, why would a company so easily offer a franchise? Could it be that the margins are so low that they do not think they can offer the product themselves and still make a profit? __________________ Asus P8P67 WS Revolution \| Intel 2600K @ 4.7 GHz \| Win 7 Pro 64 \|8 gigs Corsair 1600 \| Two Diamond 6990's in Crossfire\| Corsair AX1200 \| Thermalright Silver Arrow \| Western Digital Black 2TB 64 meg cache \| Lian-Li PC-A71B \| Logitec Z-5500 \| Three Asus 26" VW266H monitors running under Eyefinity \| Last edited by David M; 12-24-2006 at 01:46 PM.