no wonder localshops are dying

Discussion in 'Digital Photography' started by hugo drax, Dec 22, 2003.

  1. hugo drax

    Dan Sullivan Guest

    FULL PRICE!!!!

    Your funnier than all the Marx brothers put to gether.
    10% of the price???

    or even 5%!!!!!

    You're freakin hilarious!!!!

    The store is lucky to make 10%.

    How much do you think the store makes percentage wise on the selling price?

    Show me how smart you are.

    Dan
     
    Dan Sullivan, Dec 26, 2003
    #81
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  2. hugo drax

    JK Guest

    Another issue is that many stores sell opened returned items as new.
    If an item has ben opened, it should not be allowed to be sold as new.

     
    JK, Dec 26, 2003
    #82
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  3. hugo drax

    Dan Sullivan Guest

    Sure they do.
    ;-))))))))))

    ---------------------

    From Entrepreneur.com,

    http://www.entrepreneur.com/article/0,4621,265229,00.html

    Gross Profit Margin And Markup

    Figuring out when you're making a profit is key to business success.

    One of the most important financial concepts you will need to learn in
    running your new business is the computation of gross profit. And the tool
    that you use to maintain gross profit is markup.

    ----------------------

    That enough for ya, JK?

    You can go read the rest of the article if you like.
    And if their margins are too low their accountant will tell them to increase
    their markup!!!!

    ;-)))))))))

    JK, you're too good to be true!!!

    Can you keep this up till January 1, 2004?

    I'd really like to start the New Year off as well as I ended 2003.

    ;-P

    Dan
     
    Dan Sullivan, Dec 26, 2003
    #83
  4. hugo drax

    Dan Sullivan Guest

    Well, JK, that certainly didn't do it!

    The cost is so close to $900 that you could reasonably use that figure.

    Dan
     
    Dan Sullivan, Dec 26, 2003
    #84
  5. hugo drax

    Bob Salomon Guest

    What is many?

    How many have you personally have knowledge of doing this?

    Perhaps you meant to say some may?
     
    Bob Salomon, Dec 26, 2003
    #85
  6. hugo drax

    Dan Sullivan Guest

    OK, and if YOU are the one returning the opened item should the camera store
    charge you a restocking fee because they can't resell that product as new???

    Are YOU willing to lose 20% of what you spent?

    Dan
     
    Dan Sullivan, Dec 26, 2003
    #86
  7. hugo drax

    Dan Sullivan Guest

    Hey Bob,

    This guy JK is hilarious!!!!

    He actually wrote that "Major retailers don't use term "markup." They only
    use the term margin."

    You ever hear a retailer use the term "markup????"

    AND he thinks a Digital Rebel Kit costs the dealer $750 and that store
    salesman get 10% commissions!!

    What do you think, Bob?

    Best, Dan
     
    Dan Sullivan, Dec 26, 2003
    #87
  8. And hopefully they talk about net margins as well as gross, because the net
    margin (taking overhead into account, which the gross margin does not) is of
    more interest to an investor.

    But that's not relevant to this discussion. Dan didn't say "margin", he said
    "markup". When he mentioned a 100% markup, he wasn't talking about a 100%
    margin, which would be the delightful situation of selling a product you got
    for free. He was talking about selling something for twice what you paid for
    it, i.e. a 50% gross margin.

    Once again, markup is a percentage of cost, and gross margin is a percentage
    of the sale price. They are two different numbers, but you can always
    convert directly from one to the other.

    A few examples (rounded to the nearest percent):

    50% markup = 33% margin = sell for one and a half times your cost
    100% markup = 50% margin = sell for twice your cost
    200% markup = 67% margin = sell for three times your cost
    300% markup = 75% margin = sell for four times your cost

    -Mike
     
    Michael Geary, Dec 26, 2003
    #88
  9. hugo drax

    Bob Salomon Guest

    Sounds like his dealer experiences are with SYs and not dealers.

    Hope you had a good Xmas.
     
    Bob Salomon, Dec 26, 2003
    #89
  10. Do you think that is more, or less, likely to happen when you buy from an
    internet reseller?

    HMc
     
    Howard McCollister, Dec 26, 2003
    #90
  11. hugo drax

    JK Guest

    If they sell the item at a discount, then they should charge a restocking fee
    for non defective returns. Defective returns should be exchanged for
    another of the same model. Full priced stores should eat the loss on
    having to sell opened returned non defective items as used or
    "open box specials".
     
    JK, Dec 26, 2003
    #91
  12. hugo drax

    Dan Sullivan Guest

    If JK doesn't think retailers use the term "markup" how can I get him to
    understand what an SY is?
    Very nice, thank you.

    Best, Dan
     
    Dan Sullivan, Dec 26, 2003
    #92
  13. hugo drax

    Dan Sullivan Guest

    They aren't called resellers for nothing!

    ;-P

    Best, Dan
     
    Dan Sullivan, Dec 26, 2003
    #93
  14. hugo drax

    JK Guest

    It depends which retailers. In a retail store, I look for open box specials
    as a sign that they probably don't sell opened returns as new. Another
    sign would be a high restocking fee. For websites, I also look for a
    demo, returns or refurbished section. If none exists and if the internet
    vendor doesn't have a high restocking fee, then I might be wary.
     
    JK, Dec 26, 2003
    #94
  15. hugo drax

    Dan Sullivan Guest

    Everyone sells at a discount.
    What's a "full priced store?"

    A store that sells for list?

    Who do you know that pays list price for anything?

    Dan
     
    Dan Sullivan, Dec 26, 2003
    #95
  16. hugo drax

    JK Guest

    Not really. Many stores still charge $999 for a Digital Rebel with the
    lens. Others might discount by only 2% or so, which is only around
    $20. I don't consider that a significant discount.
    One who as an example, sells a Digital Rebel with the lens at $999 or
    close to it.
    I know a number of people who are like that. They will pay $99
    or $119 for a pair of Rockport shoes, while I will find a retailer
    who sells them for much less.
     
    JK, Dec 26, 2003
    #96
  17. Well, that's one approach. There's a computer store around here that I know
    well. They have a shrink wrapping machine and a stock of official-looking
    stick-on seals, the purpose being to reseal and re-wrap the box, good as
    new. I wonder if there are any internet electronics resellers that would
    have access to such devices...

    Nah. How could anyone believe that a New York electronics dealer might be so
    unscrupulous?

    I have a friend that bought a digital camera from one of those stores. A
    well-known place, with a good resellerratings.com rating, and a nice big
    section on their website with open-box specials. Camera came shrink-wrapped,
    little seal on the box end, all the instructions, warranty card, accessories
    neatly wrapped and sealed. When he put in the supplied (wrapped and sealed)
    32 meg CF card, he found that there were about 20 pictures already on it.
    Hmmm. I don't know if you find that suspicious, but I do. When he looked at
    the seal on the box end, he could see that there were actually two seals
    there, one on top of the other...

    My point, you can't say that you are more likely to get screwed at a camera
    store than over the internet in terms of reselling returned equipment as
    new.

    HMc
     
    Howard McCollister, Dec 26, 2003
    #97
  18. hugo drax

    MarkH Guest

    100% wrong.

    When an item arrives in store at $100 cost, to work out the selling price
    you add a markup. You know the buy price and need to calculate a sell
    price.

    When the quarterly report is produced you know the volume of sales and
    purchases and it is easy to calculate margins.

    Just because you don’t find the term ‘markup’ in the quarterly report does
    NOT mean that ‘markup’ is not used on a daily basis in most stores.

    I have worked in more than one retail outlet and know that markup is used
    regularly.


    Also:
    If someone suggests that a retailer uses a 100% markup, even if the
    retailer doesn’t use the term markup and is actually working to a 50%
    margin, that does NOT make it incorrect to say they have a 100% markup.
    Here’s a clue for you - 100% markup and 50% margin are both valid ways to
    say the same thing.

    If an item sells for $50 and it costs $25 you know it has a gross margin of
    50%. If an item arrives in store costing $25 and you want a 50% margin,
    you know you need to double the price to $50, voila - you have just added
    100% markup.
     
    MarkH, Dec 26, 2003
    #98
  19. hugo drax

    Dan Sullivan Guest

    FYI the list price of the Digital Rebel Kit is $1400.

    I would consider $999 a significantly discounted price.
    Again you are not showing me how smart you are, JK.
    And I'll bet you won't go out for food unless it's with a coupon, two-fers,
    or the early bird special.

    Dan
     
    Dan Sullivan, Dec 26, 2003
    #99
  20. hugo drax

    JK Guest

    What? http://www.steves-digicams.com/2003_reviews/300d.html
    says that the suggested list price is $999 with the lens, and $899
    for the body only kit.
    LOL! Very funny. I have never seen a retailer in the US sell it for more than
    that.
    Not quite, although I do avoid restaurants with very high prices and
    very small portions.
     
    JK, Dec 26, 2003
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