Bond and Bond misleading?

Discussion in 'NZ Computing' started by sal, Jan 5, 2004.

  1. sal

    C Guest

    And they give you an extra discount too!

    I wonder if its possible to go to Bond & Bond - get a quote (say for a
    PS2). Go to K Mart, they will beat it and discount it by another 5% of
    the difference, take that and go to Electronics Boutique and get a
    further discount, take that and go back to Bond & Bond and so on and
    so on.
     
    C, Jan 6, 2004
    #21
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  2. sal

    cowboyz Guest

    yes I am sure adn yes I am sure.
    It wouldn't have been exactly $121. It was about that. Close enough for
    me to round it to $121 in my head and remember that number. as with the
    $135
     
    cowboyz, Jan 6, 2004
    #22
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  3. They say cheaper advertised price on most of them. If you talk someone down in a
    shop its not advertised so therefore wont be matched.
     
    Richard Malcolm-Smith, Jan 6, 2004
    #23
  4. sal

    sal Guest

    Advertised could just mean a print out from their website.
     
    sal, Jan 6, 2004
    #24
  5. sal

    SomebodyElse Guest

    What about a 'quoted' price written on the back of their business card?
    It's not an advertised price, but it is fairly much an official offer of
    the goods for a given price.

    - Scott
     
    SomebodyElse, Jan 6, 2004
    #25
  6. sal

    Jerry Guest

    They would have to verify it, anyone can pick up a business card from
    a shop and write whatever they want on it
     
    Jerry, Jan 6, 2004
    #26
  7. sal

    Palm Guest

    Good idea but Noel Leemings and Bond and Bond do NOT give quotes they tell
    you the price (orally) and will not confirm again on the phone .... real
    a#$wipes, never dealt with them again. If the price is too low they say you
    can't get flybuys with that and that the deal is different because of
    interest free periods ...etc. Also interesting to note that the margin on a
    $2500 tv is about $700 which means if they knock off $50 - $100 you feel
    proud but they still make a packet. ...J
     
    Palm, Jan 7, 2004
    #27
  8. sal

    Rich Guest

    Usually a MAXIMUM of about $700, less GST and freight. The bottom line for a
    big chain store is they are more likely to be making 1-2% on that sort of
    sale after overheads, warranty costs, interest free credit and so on.
     
    Rich, Jan 7, 2004
    #28
  9. sal

    Bok Guest

    Yep, it's quite amazing the bullshit that goes on with pricing at these
    stores.

    Around 8 years ago I was shopping around for a particular model Sony VCR
    and TV. I visited several of the major retailers including Bond&Bond, Noel
    Leeming, Powerstore and a few smaller outfits. The label price for the
    VCR varied between around $900 and $1150 between the stores. Some of them
    advertised the usual bullshit zero interest deals or no downpayment
    deals. Realising the prices were stacked to allow for these bullshit zero
    interest deals - I decided to ask a sales person at each of the stores for their
    cash price on the VCR.

    To my amazement, their initial cash price offer was around $800 (or
    $799) without exception. I found this quite interesting at the time. Only
    a few of the stores had the Sony TV model we were interested in - one of
    them happened to be Bond&Bond. We went back to the original Bond&Bond store and asked
    what their best price was for the VCR and TV combined. The young salesman
    we were dealing told us he could only go as low as a price he had in a
    book he brought out and showed us (about $400 off listed price),
    but revealed the store manager might be able to go lower.
    In the end, the manager was able to offer us $700 off the combined label
    price of the TV and VCR. Actually I'm a big softie when it comes to
    negotations, so I was probably still ripped off ;-))


    The moral is it definitely pays to negotiate. Cash price includes cheque
    or EFTPOS, some stores will even accept a credit card.
    'Cash price' appears to be a recognised code phrase
    that means cut the bullshit and give us your real price
    (and this is still above their rock bottom lowest price).
     
    Bok, Jan 8, 2004
    #29
  10. sal

    Mainlander Guest

    Mostly it is not a credit card price as there are extra costs for credit
    cards for the store, "cash price" enables them to get around the
    stipulation that extra $$$ must not be charged for using a credit card.
     
    Mainlander, Jan 8, 2004
    #30
  11. sal

    Ed the Med Guest

    RRP have no legal standing, in fact it is illegal for a manufacturer to set
    a retail price as it is anti-competitive. (a result of the FTA legislation).
    Therefore the RRP given by the manufacturer (or in this case the
    distributor) is 'Recommended' or 'Suggested' i.e. a standard industry profit
    margin on a standard cost purely as a 'guide' for the customer (yeah right,
    but that makes it legal). The retailer can charge what they like, bearing in
    mind that if they deviate widely from the market price they make themselves
    less likely to make a sale. Hence the focus on aspects other than the
    price - service, finance, add-ons etc that give a more attractive 'package'.

    Often retailers will set up a 'discount' in one of two ways - they will:

    1) Use the RRP on a product they have not had in stock (i.e. they have no
    previous instore sell-price) and begin stocking the product at a new buy
    price (which seems likely in this case), so say in Nov the RRP for the TV
    was $999, buy price of say $750. Melco offer them to their customers at a
    new buy of $450, RRP now $599 (reasons being deleted model, product runout,
    increasing market share, new technology imminent etc, etc). Because B&B
    haven't stocked the TV before they can claim the previous RRP as valid for a
    period of time (typically a month for 'specials').

    2) Raise the price of an instore model in Nov, so they can sell it at a
    discounted price in Dec, or return a specialled product to it's full retail
    price for at least a month (the old Briscoes approach). The legalities of
    this are slightly trickier but essentially it is a major reason why bigger
    retailers have monthly promotion cycles with the retail prices of various
    products going on and off 'special' on a regular basis.

    Customers who buy purely on price often aren't high priority for sales staff
    generally, they aren't loyal as they'll go wherever the lowest price is and
    they don't place value on aftersales service or support (until it all goes
    wrong of course). On the plus side they often know exactly what they want
    (usually because some poor bugger in another store helped them out but
    failed to close the sale) so the time you have to spend with them is short,
    basically work out a price and give it to them, try a few add-ons to bump up
    the profitability of the sale.

    Some staff do specialise in them because it doesn't require any sales skills
    to work with discount/cash customers. You'll often see junior sales staff
    doing the initial donkey work but senior staff or managers finalising the
    sale because that's more cost effective than tying up senior staff the whole
    time.
     
    Ed the Med, Jan 9, 2004
    #31
  12. sal

    Ed the Med Guest

    No, sales staff hate Dutch auctions like that, you'll usually get either
    short shrift or a 'buy now, leave the store and it's gone' price. Most
    successful is the 'I've been round town and XX is the best offer I've got -
    what can you do' approach.
     
    Ed the Med, Jan 9, 2004
    #32
  13. sal

    Ed the Med Guest

    Limits are usually put on what discounts sales-staff can offer.
    Leemings (and presumably B&B) used to (and I think still do) pay their staff
    both a salary and a commission (Incentive etc) the commission varied
    depending upon the profitability of the sale in question but might vary from
    say up to 5% for a high profit sale, down to 1% for a minimum profit sale,
    to 0% if they start giving things away (which is why throwing in cables etc
    seems to give sales staff such pain). Managers typically don't have
    commissions (being on higher salary/bonus packages) so they handle the less
    profitable sales to protect the overall store profit margin.
     
    Ed the Med, Jan 9, 2004
    #33
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