There is a solid economic reason behind percentages. If the retailer were to liquidate all that inventory and move it into let's say bonds he'd be earning a "percentage" yield. Now he has to target another "percentage" that's higher than such bond yields and commensurate with the risks his enterprise is exposed to.
Though I am not an expert in finance, picked up those concepts while working on quantitative models in a one-off assignment. So you'd still need an accountant to sign on that
This is it really its value to the shareholder.
The downsides of capitalism, is essentially the acceptable level of margins increases over time, performance is expected to be improved, and to keep shareholders interested, you need to out perform the competition. The failure of this system is inflation.
To make matters worse, in the modern world middle men are much more common, employment agencies, letting agents, and of course distributors for goods such as what ocuk sell. These middle men also have their own profit margins as well, essentially the more things that are in the path between the original company and the consumer, the higher the price. In a perfect consumer world, nvidia would sell to everyone direct, they would have minimal margins to cover their costs and nothing else. That alone would probably knock 30-40% at least off the price, but in that world nvidia wouldnt attract investors. Then of course you have the popularity of sales taxation, as the rich dont like income taxation. Lets not forget import duties as well, because governments dont like free trade.
If ocuk were to used fixed costs on each item sold, then the cheaper items would skyrocket in price, as the margins on those would ultimately have to increase to subsidise the lower margins on the gpu's. So you might get a rtx 3080 for £600, but then you paying £80 for a budget keyboard.
This is about normal for the many products. There are some manufacturers though that break with the norm and follow roughly the exchange rate but most don't. I once heard that the reason for this is that the UK is an island ( or two ), and as such it's a captive market, meaning you can pretty much charge what you like because the Brits can't just hop in a car and drive to another country where it might be cheaper.
Yeah and import rules/duties. All to encourage the brits to pay higher to buy from native suppliers, tax the international competitors to the point they not a viable option.
