That's 40% GROSS margins, not NET.
They also offer discounts to most customers so their real gross is probably more like 30% before expenses.
Then you add-in sometimes a distributor's "rake" on top of that and you see UK brands like LFD that sell amps for $7,500 in the US when they really should be $2,500 direct to consumer...;-)
And it's not a dealer "mark-up" but rather a manufacturer discount to a reseller..;-)...as manufacturer sets MSRP, not dealer.
They also offer discounts to most customers so their real gross is probably more like 30% before expenses.
Then you add-in sometimes a distributor's "rake" on top of that and you see UK brands like LFD that sell amps for $7,500 in the US when they really should be $2,500 direct to consumer...;-)
And it's not a dealer "mark-up" but rather a manufacturer discount to a reseller..;-)...as manufacturer sets MSRP, not dealer.