Still An Eldorado? 600 Percent Profit Margin Possible
After all, power supplies currently represent one of the highest margin segments in the market. We have information from reliable sources that in certain cases margins are being obtained in the high triple digits for devices purchased directly in China. Other peripheral PC components do not afford comparable profit margin, with the exception of cables or plugs, which can even bring in several thousand percent. The sample computation below demonstrates emphatically the price inflation that occurs between the few dollars paid in China for purchasing and the price consumers pay. This is a factor of several 100%, most of which flows to dealers and retail sellers. It should be remembered however that the risk of product defects and warranty claims is borne by the purchaser. Optimal profitability is obtained through direct purchasing in China in combination with high unit volume. This lowers the purchasing cost of power supplies to just a few dollars. The table below provides an example of the individual prices.
300 Watts For 17 Bucks?
But even today, the no-name product market is showing the way. Dealers in our comparative shopping segment tgstores are already offering power supplies for as little as 17 bucks. For that you get a solid 300 watts, which is enough for most PC systems and mandatory warranty provisions.
Nothing is so cheap that it couldn't get even cheaper: no-name power supplies starting at 17 dollars for 300 watts output, such as those found in OEM computers offered by Fry's. Have a ball!
A total of 19 power supplies ran under full load for a 24 hour period. Starting at 20 percent, the load was steadily increased up to 100 percent over a space of five and a half hours, after which each power supply ran at full load. Voltage, current, temperature, output, and ripple were monitored and subsequently analyzed in the Stress Test to obtain a perspective overview of the test field, in light of which we are able to make two concurrent recommendations.
