Online price vs retail store price?

Discussion in 'NZ Computing' started by Squiggle, Dec 1, 2007.

  1. Squiggle

    impossible Guest


    There's never a need to ask for a discount from these outfits -- just head
    toward the exit and they'll tell what the "real" price is.
     
    impossible, Dec 3, 2007
    #21
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  2. Squiggle

    impossible Guest

    Yes -- but that's different from imagining you're in some kind of
    negotiation. And frankly it's an annoyance to me to have to play those kind
    of games. I'd rather shop online fore most merchandise , where the posted
    price is the bottom-line price. If it's not acceptable to you, you just
    click somewhere else.
     
    impossible, Dec 3, 2007
    #22
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  3. Squiggle

    impossible Guest

    Your're right -- 10% off is pretty standard for appliances, furniture, and
    such. Which is just another way of saying there's never really a "sale"
    price for items like that-- just the price advertised in a circular or
    tipped to you by a salesman.
     
    impossible, Dec 3, 2007
    #23
  4. Squiggle

    Craig Shore Guest

    I agree with you, I prefer the real price to be displayed. It would be better
    if all those shops did it, but I guess there is a down side for them that it
    would make comparing the shelf price so much easier between stores for us.
     
    Craig Shore, Dec 3, 2007
    #24
  5. Squiggle

    Alan Guest

    More likely they want to maximise their capture of the 'consumer
    surplus' being the difference between what the purchaser pays and what
    they *would* have paid at the top end.

    By marking up at a higher price and offering a discount only if you
    ask, they increase their total return and it far outstrips the few
    people who don't understand and just walk out without asking.

    Ideally, they also own another store down the road with a different
    pricing approach, and get that person at the other end of the street!

    --

    Alan.

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    else associated with me.

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    Alan, Dec 3, 2007
    #25
  6. Squiggle

    Alan Guest

    I reckon, on a slow day and with the right sales person (perhaps a
    manager for example), there is always at least 20% to be had.
    Probably easier on Tuesday morning that Saturday afternoon with a shop
    full of people, and as mentioned before, it will vary by store, and
    you'll have to actually haggle for the last few dollars (compared to
    the first 10% that is only a single question away most of the time) as
    most sales people get paid on the margin.

    That's the same reason why most people won't sign the standard
    real-estate agent agreements for 2% of the sales price - no incentive
    for the agent to haggle the last $1,000.

    --

    Alan.

    The views expressed are my own, and not those of my employer or anyone
    else associated with me.

    My current valid email address is:



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    Alan, Dec 3, 2007
    #26
  7. Squiggle

    Richard Guest

    They have to pay for the bullshit finance offers somehow, and people
    only seem to go for them when they percieve them to be free, so they
    jack the prices up instore - I have no problem with the idea
     
    Richard, Dec 3, 2007
    #27
  8. Squiggle

    impossible Guest

    That's textbook talk for ripping off customers.

    Ideally, they'll go out of business.
     
    impossible, Dec 3, 2007
    #28
  9. Squiggle

    impossible Guest

    Who are you saying pays for the finance? Surely you mean the customer.
    In-store finance is a profit center for stores and the most costly
    arrangement possible for buyers -- far more costly than what you'd pay with,
    say, a Visa card.
     
    impossible, Dec 3, 2007
    #29
  10. Squiggle

    impossible Guest

    Anecdotes are wonderful -- you can claim anything you want. Want to hear the
    one about the guy who knew a guy who knew a guy who never paid more than $1
    above wholesale?
    \
    We're talking about retail stores, not real estate.
     
    impossible, Dec 3, 2007
    #30
  11. Squiggle

    Allistar Guest

    Or you are happy with the price, in which case there is nothing lost.
     
    Allistar, Dec 3, 2007
    #31
  12. Squiggle

    impossible Guest

    Or...sellers post their best price, which allows buyers to all share the
    same information and so make an informed choice.
     
    impossible, Dec 3, 2007
    #32
  13. Squiggle

    Allistar Guest

    Sellers are being opportunistic posting a price higher than they will sell
    it for. Nothing wrong with that at all.
     
    Allistar, Dec 3, 2007
    #33
  14. Squiggle

    impossible Guest

    Unless, of course, you want a market in which all players compete on a level
    playing field. Information asymmetries with respect to prices benefit only
    one party to a transaction -- the opportunistic seller. If a buyer is, as
    you say, genuinely "happy" to pay more, that's fine -- but the only way
    you'd know is to openly present the higher and lower prices as options.
    That's best done when sellers post their best price and then let buyers
    freely choose.
     
    impossible, Dec 3, 2007
    #34
  15. Squiggle

    Richard Guest

    No, they offer interest free deferred payment and crap like that, all
    for only $35 admin fee, waived in some cases.

    So its in the ticket price, something a cash buyer who doesn't ask for a
    discount is subsidizing.
     
    Richard, Dec 3, 2007
    #35
  16. Squiggle

    impossible Guest

    The art of retail is making every customer think they got a bargain. But
    unless you know the true market-clearing price of some item, it's impossible
    to tell. The best arrangement, from a consumer's point of view, is for shops
    to post their best price for all products and services and let the customer
    make an objective comparison among competing sellers.
     
    impossible, Dec 3, 2007
    #36
  17. Squiggle

    Alan Guest

    But that's not the best arrangement from the vendor's perspective, so
    why would they do that?

    The best arrangement from a vendor's point of view, is for customers
    to post the maximum price for all products and services and let the
    vendor make an objective comparison among competing buyers.

    Alan.
     
    Alan, Dec 3, 2007
    #37
  18. Squiggle

    Alan Guest

    I think we can agree on that objective.
    That's clearly not true. when was the last time you walked into a
    store and told the sales person the absolutely highest price that you
    would be willing to pay, and would they like to sell to you for that?

    By failing to do that, you are also maintaining 'information
    asymmetries with respect to prices' and that is exactly right - you
    will probably approach each transaction with the objective of
    maximising your return.
    As posted elsewhere:

    But that's not the best arrangement from the vendor's perspective, so
    why would they do that?

    The best arrangement from a vendor's point of view, is for customers
    to post the maximum price for all products and services and let the
    vendor make an objective comparison among competing buyers.


    Of course, neither buyers nor sellers are likely to do that fully and
    openly since it would result in them being worse off.


    Often, the closest you will come to a 'perfect' market is in an
    auction situation where the vendor sets their lowest price to sell for
    (reserve) and the buyers bid up. However, even then the ultimate
    buyer has still ripped off the poor vendor by paying less than they
    were willing to pay.

    Compare to a Dutch auction where the reverse is true - the ultimate
    vendor rips off the purchaser by selling for more than they were
    willing to take.

    The only perfect answer in either of those situations would be if, in
    a normal auction, there just happened to be two buyers willing to pay
    exactly the same maximum price (or vice versa for a Dutch auction).


    It *appears* to me that you are only willing to consider one side to a
    transaction (the purchaser), presumably because that is the side you
    find yourself on most often or that you relate to most easily - fair
    enough. However, every deal has two sides, and both parties will
    generally try to maximise their return from the deal.

    --

    Alan.

    The views expressed are my own, and not those of my employer or anyone
    else associated with me.

    My current valid email address is:



    This is valid as is. It is not munged, or altered at all.

    It will be valid for AT LEAST one month from the date of this post.

    If you are trying to contact me after that time,
    it MAY still be valid, but may also have been
    deactivated due to spam. If so, and you want
    to contact me by email, try searching for a
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    email address.

    The following is a (probably!) totally unique
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    can use to find posts by me in a search engine:

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    Alan, Dec 3, 2007
    #38
  19. Squiggle

    Allistar Guest

    I don't see how advertising a price higher than someone is willing to sell
    for results in an uneven playing field.
    People can advertise whatever price they like for their products and
    services, just as someone can decide whether or now to purchase those
    products and services. That's about as open as it needs to be.
    The buyer has no business in knowing the markup a seller puts on an item.
    It's a detail that is relevant to the seller but it's none of the buyers
    business. What matters is that the buyer is willing to pay the nominated
    (or bargained) price for the item.
    Buyers already freely choose.

    The very fact that a buyer buys something means they are happy with the
    price, otherwise they would not have bought the item.
     
    Allistar, Dec 4, 2007
    #39
  20. Squiggle

    Allistar Guest

    Luckily we have a fairly open market and that is not the case. The vendor
    would not benefit, and would likely go out of business. The way a vendor
    stays in business is to maximise profits. That is not done by advertising
    the lowest possible price they could sell an item for.
     
    Allistar, Dec 4, 2007
    #40
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