Re: "Retail Value"


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Posted by Lew on August 19, 2001 at 05:52:15:

In Reply to: "Retail Value" posted by Stefan Kac on August 19, 2001 at 00:28:11:

Marketing 101. This is the same practice that has been around for many different products for a long time. It's like the sticker price on a car. Companies list a "suggested retail price" that nobody actually ever pays and then retailers sell for a small markup over their cost and it looks like you a getting a great discount off of this fictional "list" price. This way people get the illusion that they are getting a great bargain, even if they are paying the same price, or more, than anyone else who walks in the door.

A smart car buyer will deal by asking about the markup over cost, rather than looking at a discount from sticker. On musical instruments the only way to tell if you are paying a reasonable price is to check the selling prices from various retailers and ignor the "discount" from list that you are getting. You may get offered a price of 55% off "list" only to discover that price to be hundreds of dollars higher than the selling price from other dealers. Of course price is only one component of the buying equation. You should also consider the service, convenience, and other intangibles before buying from someone.



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