Manufacturer pricing

Discussion in 'Digital Photography' started by David J Taylor, Dec 24, 2003.

  1. 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
    David J Taylor, Dec 24, 2003
    #1
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  2. David J Taylor

    Harvey Guest

    "David J Taylor" <-this-bit> wrote in
    message news:cTeGb.5187$...
    > 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.
    Harvey, Dec 24, 2003
    #2
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  3. David J Taylor

    Trev Guest

    "David J Taylor" <-this-bit> wrote in
    message news:cTeGb.5187$...
    > 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.
    Trev, Dec 24, 2003
    #3
  4. David J Taylor

    PhotoMan Guest

    "David J Taylor" <-this-bit> wrote in
    message news:cTeGb.5187$...
    > 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
    PhotoMan, Dec 24, 2003
    #4
  5. David J Taylor

    Don Coon Guest

    "PhotoMan" <> wrote in message
    news:QkhGb.8053$...
    >
    > "David J Taylor" <-this-bit> wrote in
    > message news:cTeGb.5187$...
    > > 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".
    Don Coon, Dec 24, 2003
    #5
  6. David J Taylor

    Guest

    David J Taylor <-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.
    , Dec 24, 2003
    #6
  7. David J Taylor

    RustY © Guest

    "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/
    RustY ©, Dec 24, 2003
    #7
  8. <> wrote in message
    news:bscccf$dos$...
    > David J Taylor <-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
    David J Taylor, Dec 24, 2003
    #8
  9. David J Taylor

    Dan Sullivan Guest

    "David J Taylor" <-this-bit> wrote in
    message news:cTeGb.5187$...
    > 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
    Dan Sullivan, Dec 24, 2003
    #9
  10. 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"
    <> wrote:

    >
    >"David J Taylor" <-this-bit> wrote in
    >message news:cTeGb.5187$...
    >> 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
    >
    >
    Chris P in PA, Dec 24, 2003
    #10
  11. David J Taylor

    Dan Sullivan Guest

    "Chris P in PA" <cash4you@nospam_comcast.net> wrote in message
    news:...
    > show me a retailer, ANY retailer - concrete or internet, that
    > averages 10% markup and stays in business!


    B&H and Adorama for two...

    I know for a fact what their cost is on certain product lines and I know
    what they sell the mcd for.

    10% markup.

    Maybe higher on accessories.

    Filters etc...

    Now go off on a rant about an entirely different industry.

    > I was in the mail order motorcycle biz and ..............
    Dan Sullivan, Dec 25, 2003
    #11
  12. David J Taylor

    JK Guest

    The price to the retailer probably varies based on several criteria.
    Volume, does the store pay in advance or get the goods on credit,
    does the store have the right to return unsold merchandise within
    a specific period of time or is the sale to the retailer final, and other terms.



    David J Taylor wrote:

    > <> wrote in message
    > news:bscccf$dos$...
    > > David J Taylor <-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
    JK, Dec 25, 2003
    #12
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