Dell, Compaq, etc don't make 30% margins. They'd be sitting pretty with 30% margins. Their margins are considerably lower than that and they continually slide lower. For example, over the last few months, Dell's gross profit margins were in the 15-18% range and that included the higher margin server products. Operating profit margins were in the 5-8% range. Dell is known as one of the better firms in the business; Compaq's personal computer margins are in the mid to low teens (although it's overall gross margins are about 25%). Gateway's margins for non-PC items (software, etc) are in the high 30% bringing their overall margins to 20-22% - meaning their PC margins are also in the low teens.

But that's not the issue. The real issue is that there isn't any scalability in the manufacturing right now. Ramp up Empeg sales and everyone benefits (except old Empeg owners). How do you do that? Get some bizdev going and bump up the sales - there's no reason for Empeg not to have multiple channels of distribution. A deal with Visteon (audio OEM for automobiles), a deal with the automobile manufacturers, deals with the shops who sell car audio equipment should all have been done by now. Up the sales, up the number of Empegs produced, watch the costs go way down and (at current prices) see margins go way up.