http://www2.onecle.com/blog/archives/2008/05/08/rackspace-serving-up-ipo-plans/ Blogging on Business Contracts Sat, 08 Aug 2009 01:21:12 -0500 http://wordpress.org/?v=2.8.6 hourly 1 http://www2.onecle.com/blog/archives/2008/05/08/rackspace-serving-up-ipo-plans/comment-page-1/#comment-32 Ken Chan Fri, 06 Jun 2008 20:53:11 +0000 http://www.onecle.com/blog/?p=212#comment-32 If you charged $300 for a candy bar, you would only make a profit if you could find a buyer and the cost of manufacturing the candy bar and selling it was less than $300. I doubt you'll find any takers if all you are selling is a regular Snickers bar. Instead, the more likely scenario is that to justify the $300 sticker price, you'll have to make it by hand with some premium grade chocolate, a sprinkle of edible gold dust, and some other rare and expensive ingredient to make it a unique experience. Not sure what the profit margin will be after that since you'll have to spend a bit on marketing to find an elusive buyer. If you charged $300 for a candy bar, you would only make a profit if you could find a buyer and the cost of manufacturing the candy bar and selling it was less than $300. I doubt you’ll find any takers if all you are selling is a regular Snickers bar. Instead, the more likely scenario is that to justify the $300 sticker price, you’ll have to make it by hand with some premium grade chocolate, a sprinkle of edible gold dust, and some other rare and expensive ingredient to make it a unique experience. Not sure what the profit margin will be after that since you’ll have to spend a bit on marketing to find an elusive buyer.

]]> http://www2.onecle.com/blog/archives/2008/05/08/rackspace-serving-up-ipo-plans/comment-page-1/#comment-31 Taj Maldi Fri, 06 Jun 2008 19:41:15 +0000 http://www.onecle.com/blog/?p=212#comment-31 Rackspace is making profits because it is charging its clients arms and legs for servers and support. You can find companies like Server Intellect that offer the same managed servers and superior support for 1/3 of the cost. If you charge 300$ for a candy bar you would make a profit too! Rackspace is making profits because it is charging its clients arms and legs for servers and support. You can find companies like Server Intellect that offer the same managed servers and superior support for 1/3 of the cost. If you charge 300$ for a candy bar you would make a profit too!

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