IT service businesses typically offer higher margins than for hardware manufacturers of sellers. IT services have the complicated task of organizing and finding solutions to many different potential problems that occur for a customer. The varied degree of issues require expertise and potentially high margin hardware solutions, which the service companies can sell at a significant markup. IT service businesses also lend themselves to economies of scale in terms of expertise, solutions, hardware, and customer relationships.

Specific Company Comments:
BBY: Best Buy's Geek Squad allows them to increase margins and revenue form existing customers who need a services operations for their electronic products. …