system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5:How do Persian rug shops stay in business?

I understand that rugs can cost in the tens of thousands but I pass by these places in my city and they always look shady and empty. The rugs always cover the windows so you can't see inside the shop. Are these places fronts for back door dealings or legit businesses? How often does someone walk in and drop $20 000 on a rug? How do these store fronts afford thousands a month for rent?
gpt
High end retail stores such as rug shops, expensive antique stores and so on have very high markup.  300% minimum, and up to 1000% in many cases.  These rug shops are selling 20 rugs a year at $20,000, unlike a high volume discount stores which might sell 20,000 rugs at $20 each a year.  You don't have to sell a lot of rugs a year if you are purchasing them at $2000 each, and sell at $20,000.