NB George wrote:
Without a profit, there is no future for any enterprise.
How many units of that switch do you figure the company sells per year? In my state the warehouse might have paid inventory tax on that switch for years. Have to cover that, too. Not as if you can post endless annual losses like a country I'm fond of....
Sometimes it's more about the way it is represented. If the price of the switch included the costs you pointed to, and the shipping looked more reasonable, people might not give it a second thought.
I am usually amazed how small business' are able to stay open and still sell stuff or provide services as cheap as they do. Most do a good job and get repeat customers because they treat people right.