Selling a High Item Turnover of Million items for $1M, at 20% Mark Up gives a return of $200K, as the pre overhead profit.
Selling a low turnover item at a pre sale cost of $200K for $1M.
Both the above sales do occur, I'm sure for those that can afford the initial outlay, the latter is the most attractive sale to achieve.
I once had a very good communication with a friend who sold Architectural Items.
The Service offered was most commonly a word of mouth recommendation.
There was a period when Ornate carved Marble Fire Surrounds were on offer, these were replica's of a Pattern used by a famous Stone Carver from a few hundred years past.
Quite similar as a product to the Cast Iron Items that were commonly seen, which were all cast to the Patterns of the most prominent Victorian Foundries.
I was informed of the door to door price for each surround, of which it was quite a cost to be produced and imported. I inquired the ballpark resale price, to which I was informed the Buyer who arrives to view in a Helicopter will be paying the most.
The resale price was genuinely what was seen to be fitting as the charge to the Customer.
I know one went to a Large Estate House being renovated, for over a £100K a surround and there was more than one purchase made.
The psychology is that the Customer / Vendor in purchases with a small mark up and cost price will most likely never meet, and the purchase is one that can be determined as being very very fair.
The higher the price ticket usually means the Customer / Vendor will meet, and the Vendor is able to decide just how unfair the sale is going to be for the Customer.