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Manufacturer pricing

 
 
David J Taylor
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      12-24-2003
Looking at the discussions on "Buy from your local camera store" the main
issue seems to be pricing, followed closely by support and attitude. Let
me ask a question:

- should manufacturers/wholesalers sell at one fixed price to internet and
local stores irrespective of the amount bought?

Cheers,
David


 
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Harvey
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      12-24-2003

"David J Taylor" <(E-Mail Removed)-this-bit> wrote in
message news:cTeGb.5187$(E-Mail Removed)...
> Looking at the discussions on "Buy from your local camera store" the main
> issue seems to be pricing, followed closely by support and attitude. Let
> me ask a question:
>
> - should manufacturers/wholesalers sell at one fixed price to internet and
> local stores irrespective of the amount bought?
>
> Cheers,
> David


No. Manufacturers are free to sell for whatever the market will bear,
except for sole source contracts to the Government. Economies of scale
result in lower manufacturing per piece costs for higher quantities, hence
lower prices to high-volume mail order/internet distributors. People buy at
retail stores for reasons of immediate gratification, personal support, easy
return if the item is unsatisfactory and occasional sales.



 
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Trev
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      12-24-2003


"David J Taylor" <(E-Mail Removed)-this-bit> wrote in
message news:cTeGb.5187$(E-Mail Removed)...
> Looking at the discussions on "Buy from your local camera store" the

main
> issue seems to be pricing, followed closely by support and attitude.

Let
> me ask a question:
>
> - should manufacturers/wholesalers sell at one fixed price to internet

and
> local stores irrespective of the amount bought?
>
> Cheers,
> David
>
>

What are the Benifits, Why not Just have RPM back.


 
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PhotoMan
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Posts: n/a
 
      12-24-2003

"David J Taylor" <(E-Mail Removed)-this-bit> wrote in
message news:cTeGb.5187$(E-Mail Removed)...
> Looking at the discussions on "Buy from your local camera store" the main
> issue seems to be pricing, followed closely by support and attitude. Let
> me ask a question:
>
> - should manufacturers/wholesalers sell at one fixed price to internet and
> local stores irrespective of the amount bought?


Automobile manufacturers used to charge less to their bigger dealers. IIRC,
something was done by the government to change that, alleging price fixing
by the factories. Can someone explain that batter than I just did?
Joe Arnold


 
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Don Coon
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      12-24-2003

"PhotoMan" <(E-Mail Removed)> wrote in message
news:QkhGb.8053$(E-Mail Removed)...
>
> "David J Taylor" <(E-Mail Removed)-this-bit> wrote in
> message news:cTeGb.5187$(E-Mail Removed)...
> > Looking at the discussions on "Buy from your local camera store" the

main
> > issue seems to be pricing, followed closely by support and attitude.

Let
> > me ask a question:
> >
> > - should manufacturers/wholesalers sell at one fixed price to internet

and
> > local stores irrespective of the amount bought?

>
> Automobile manufacturers used to charge less to their bigger dealers.

IIRC,
> something was done by the government to change that, alleging price fixing
> by the factories. Can someone explain that batter than I just did?
> Joe Arnold


Sorry to inform you that, in effect, manufacturers still charge less to
their bigger dealers. It's now in the form of "holdbacks" which dealers
receive based on sales volume. Dealers don't pay manufacturers what you see
advertised as "dealer invoice".


 
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stan@temple.edu
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Posts: n/a
 
      12-24-2003
David J Taylor <(E-Mail Removed)-this-bit> wrote:
> Looking at the discussions on "Buy from your local camera store" the main
> issue seems to be pricing, followed closely by support and attitude. Let
> me ask a question:


> - should manufacturers/wholesalers sell at one fixed price to internet and
> local stores irrespective of the amount bought?


In the United States, what you propose is illegal. Manufacturers can sell
at one fixed price for wholesale activity, but they certainly cannot force
any retailer to sell at a specific price.

 
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RustY
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      12-24-2003
"Don Coon" <coondw_nospam@hotmail_dot_.com> wrote in message
news:_HhGb.125227$8y1.392377@attbi_s52...
>........ in effect, manufacturers still charge less to
> their bigger dealers. It's now in the form of "holdbacks" which dealers
> receive based on sales volume.


As it should be. I expect to pay much less per unit if I buy in bulk, and
so do traders.
--
For Welsh Military Flying visit .......
www.groups.yahoo.com/group/V-A-S/


 
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David J Taylor
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      12-24-2003
<(E-Mail Removed)> wrote in message
news:bscccf$dos$(E-Mail Removed)...
> David J Taylor <(E-Mail Removed)-this-bit> wrote:
> > Looking at the discussions on "Buy from your local camera store" the

main
> > issue seems to be pricing, followed closely by support and attitude.

Let
> > me ask a question:

>
> > - should manufacturers/wholesalers sell at one fixed price to internet

and
> > local stores irrespective of the amount bought?

>
> In the United States, what you propose is illegal. Manufacturers can

sell
> at one fixed price for wholesale activity, but they certainly cannot

force
> any retailer to sell at a specific price.


I said, manufacturers selling to stores, not stores selling to customers.

I do not ask if it was legal, simply whether manufacturers should (be
forced to) do this.

Now that's two questions!

- do you want a level playing field for all retailers?
- should that be enforced?

I suspect most people will just want the lowest final purchase price!

Cheers,
David


 
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Dan Sullivan
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      12-24-2003

"David J Taylor" <(E-Mail Removed)-this-bit> wrote in
message news:cTeGb.5187$(E-Mail Removed)...
> Looking at the discussions on "Buy from your local camera store" the main
> issue seems to be pricing, followed closely by support and attitude. Let
> me ask a question:
>
> - should manufacturers/wholesalers sell at one fixed price to internet and
> local stores irrespective of the amount bought?


Manufacturers and distributors almost always give better pricing to dealers
who buy in huge quantities.

Say it's 5% less.

And to make matters worse for the little stores the huge dealer only needs a
10% markup to stay in business.

So the little store pays $100 for a product that the MO stores pay $95 for.

And the MO stores then sell it for $105.

When the little guys have to make a 15% markup on hard goods which makes
their price $115.

IOW no one's getting rich selling this stuff for peanuts.

Best, Dan



 
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Chris P in PA
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      12-24-2003
show me a retailer, ANY retailer - concrete or internet, that
averages 10% markup and stays in business!

I was in the mail order motorcycle biz and sell on ebay. I have seen
first hand how things are sold and distributed, etc, and teh costs
associcated with mail order.

To break even, we had to do 26% overall margin, and 30% was the goal.
To other businesses we sold at 20-25% markup depending upon their
sales volume, hand holding needed and returns as well has method of
payment. Credit cards cost 1.7% of the sales price (paid to Visa/MC
Discover. Amex is more, low volume is more)

We tried to have the shipping cover its costs. its costs are the
actual shipping charge via UPS, the box, label, packing material,
invoice paper and printer ink, labor. I find it amusing that ebay
sellers often say they cahrge 'exact shipping cost only' or in the
teck areas, HUGE shipping fees. one is ripping themselves off, the
other either you or ebay.

Ads in the magazines..in the motorcycle mags, a full page color ad
could cost $3,000 a month/issue, and you usually had to have a 8 to 12
issue contract. and we advertised in 6 to 8 magazines.

phones...you gotta have them.. 1-800 number..ten cents a minute on
every incoming call, then we got a T-1 fiber line (umm, that was
nearly a $3000 investment there) and the phone system ($650 per DESK
phone...and we had 20+ of them).

now add in labor..sales people (phone answerers, etc), customer
service, shipping and receiving - we shipped on average 175 orders a
day. you also need a few bean counters.

yo still have rent/mortgage, heat, electricity, insurance, fixtures
(desks, computers, shelving, etc)

should we talk catalog costs? Mailing costs? I did that too.

We could buy from the manufacturers (overseas, by the container load)
or importers (smaller quantiities, but CASH ONLY) or from a
distributor / jobber. Each option had it's benefits and costs. A
distibutor would take back old unsold merchandise, sell you one of
something, bill monthly, etc. At times we would buy old stock from a
distributor (last year's boots or helmets, etc) or place a large
annual order and get free financing.

I would just about guartantee that the camera world is exaclty the
same (the hobby world of RC and trains is).

i buy a lot on line / mail order. This past week my computer died. i
bought a new power supply locally ($40, about $5 less online) and a
new motherboard ($41 online, $116 locally).

long live the free market. until we all work for walmart!

chris

On Wed, 24 Dec 2003 17:21:08 GMT, "Dan Sullivan"
<(E-Mail Removed)> wrote:

>
>"David J Taylor" <(E-Mail Removed)-this-bit> wrote in
>message news:cTeGb.5187$(E-Mail Removed)...
>> Looking at the discussions on "Buy from your local camera store" the main
>> issue seems to be pricing, followed closely by support and attitude. Let
>> me ask a question:
>>
>> - should manufacturers/wholesalers sell at one fixed price to internet and
>> local stores irrespective of the amount bought?

>
>Manufacturers and distributors almost always give better pricing to dealers
>who buy in huge quantities.
>
>Say it's 5% less.
>
>And to make matters worse for the little stores the huge dealer only needs a
>10% markup to stay in business.
>
>So the little store pays $100 for a product that the MO stores pay $95 for.
>
>And the MO stores then sell it for $105.
>
>When the little guys have to make a 15% markup on hard goods which makes
>their price $115.
>
>IOW no one's getting rich selling this stuff for peanuts.
>
>Best, Dan
>
>


 
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