USB cable markup
Another common business model for selling newer inkjet printers involves selling them at very low prices—sometimes below cost—but without the USB 2.0 cable necessary to connect the printer to a computer. Vendors recover the costs by charging very high prices for separate USB cables. This allows retailers to advertise extremely low prices for inkjet printers.
Large electronics retailers that sell inkjet printers, such as Best Buy and Circuit City, sell a variety of USB cables, but all have very high markup.[4] If a customer buys both a cheap inkjet printer and a USB cable, the high profit margin on the cable will allow the retailer recover the losses from selling the printer below cost. However, similar USB cables can be purchased for much lower prices from retailers that do not also sell inkjet printers. Compare these prices on equivalent products:
- 6-foot black USB 2.0 A-B cable for $31.99 from Circuit City
- 6-foot black USB 2.0 A-B cable for $2.49 from Firefold.
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7 Underlying business model
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