Learn to math.
In your example 72.5% of the higher amount is the same as 145% of the smaller amount (cbf actually mathing it, but you obviously don’t grasp the concept of maths very well).
Retailers will NOT be happy to make the same $100 profit, if they have to outlay 145% MORE cash to achieve it. Realistically, for many retailers, that extra 145% cash comes from an overdraft, and will have it’s own costs associated with it. No-one will use 2 1/2 times more cash to generate the same profit, and be happy with that.
Another way to look at it. In your example, $100 item from China generates 100% of cost price, to sell at $200. If that same item now costs $245 but sells at $345 only, then the cost price generated is more like 40% (shipping/handling costs are excluded, for simplicity). Most businesses would lose their bankers if they take such a hit.
Learn to math. In your example 72.5% of the higher amount is the same as 145% of the smaller amount (cbf actually mathing it, but you obviously don’t grasp the concept of maths very well). Retailers will NOT be happy to make the same $100 profit, if they have to outlay 145% MORE cash to achieve it. Realistically, for many retailers, that extra 145% cash comes from an overdraft, and will have it’s own costs associated with it. No-one will use 2 1/2 times more cash to generate the same profit, and be happy with that. Another way to look at it. In your example, $100 item from China generates 100% of cost price, to sell at $200. If that same item now costs $245 but sells at $345 only, then the cost price generated is more like 40% (shipping/handling costs are excluded, for simplicity). Most businesses would lose their bankers if they take such a hit.