You are to be forgiven for not understanding. Erich doesn't run DIYsoundgroup as a FOR PROFIT business, but as a distributor AT NO PROFIT to benefit the DIY community. It's unbelievable he can do that, and I've personally never seen anything else like it.I have no idea what he is doing. I'm just saying all businesses front money for a product. You should have used a different example to get your point across, because it clearly didn't work.
A normal business "fronts" money for a product, but for every $10 fronted the business needs to sell that product for $14 just to keep the doors open, the lights on and have enough money on hand to order the next round of product to replace the one just sold.
Erich "fronts" the cash for a $10 product and re-sells it for $10 and ten cents. (I don't know the exact markup, but it's not much).
Erich is a national treasure to the DIY community. We can never thank him enough for the sound of the great products we are able to put together for a fraction of the cost of commercially made products.
Hey Erich; thanks.