[BBLISA] 30% Apple

Josh Smift irilyth at infersys.com
Mon Feb 21 18:24:55 EST 2011


DA> Actually, Home Depot does get a commission of about 30% on every
DA> hammer sold. Of course, they truck it, warehouse it, label it, insure
DA> it, handle it, expense damages and theft, take returns and provide
DA> customer support, thereby reliving the manufacturers of a significant
DA> expense of building a material distribution and sales system.
DA>
DA> What does Apple do for the developer?

Apple may do a lot for the developer (or they may not), but the real point
is that what Home Depot *doesn't* do is tell the hammer manufacturer that
they're not allowed to also ship hammers to Ace, Lowes, some guy with a
roadside hammer stand, and sell them out of the hammer manufacturer's
mom's garage, and prohibit any of those people from charging a lower price
than the price offered at Home Depot.

(Not a perfect metaphor, since the different stores in this case set their
own prices, but you get the idea.)

                                      -Josh (irilyth at infersys.com)



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