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Originally Posted by epitome
Why are margins so thin though? Aren't they just making the shit in some third world country like everybody else?
There seems to be so much waste in corporate America. No accountability. I guess employees don't feel like they are spending their own money like they do in smaller businesses.
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Margins are not thin for the manufacturers. But most IT Manufacturers don't sell direct. They sell through a channel utilizing distributors. The resellers purchase from distributors.
The distributors work off small margins. Their goal is to do volume. They have some competition but there are just a few of them who do a good majority of the business. Resellers are the ones that have to battle out. A lot pricing online, etc. If you are an IT Director or CIO you do care what you spend because you have a certain budget and have to obtain certain goals within that budget. So the spending is not as free as you would expect and not as free as it used to be. People buy now more for need then for want. But of course its not like spending your own money.