Competitive Pricing?

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beeser

Member
Oct 19, 2016
313
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Arizona, United States
I don't know how this will be received so I'll begin by stepping lightly and not mentioning any names or places. Obviously prices for products and services vary and sometimes vary greatly depending on when and where you buy. Like many of you I spend my money selectively and try to get the best price. If not the cheapest then at least justified with better service. The internet has been a boon for us consumers in that we have the resources to do our due diligence easily and have stuff delivered to our door from practically anywhere in the world. The only wrinkle in that effort that I've encountered has been when some manufacturers place restrictions on their distributors/retailers where they may sell their products. That bothers me and that is what I just discovered with one of the manufacturers frequently discussed on this forum. What say you?

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Most manufacturers place a restriction on dealers that they must advertise the manufacturers products at a certain price called M.A.P.
This is why all dealers seem to have the same price for a given item. The dealer, however, is not bound to SELL the item at the M.A.P. price point.
The dealer can sell the item for what ever they wish. Most dealers will not "wiggle" much if any because the profit margins are low. If you can find
a "small" or "just starting" dealer you might be able to negotiate discounts on popular products via private channels but if the dealer "advertises" a lower than M.A.P. price it will cause a revocation of purchasing rights from the upstream supplier / importer. There are other practices as you mentioned as well that are restrictive. GoPro is a prime example of this practice as they both set the minimum price and will not warranty items not sold through their dealer network (DJI is another example).Feel free to PM me to discuss more.

Thurmond
 
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Remember that manufacturer's distributers have hidden costs like training, parts inventory, shipping and import fees, customer service, and warantee repairs that must be covered in the cost of products. We also live in a system where the cost of commodities reflect what people are willing to pay. 

It could be worse: Nikon Camera, USA will not repair a product, even for a fee, that enters the country outside of its official distribution network. So, if you buy a gray market Nikon camera it will not be repaired by an authorized repair facility.

 
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"scrane"Remember that manufacturer's distributers have hidden costs like training, parts inventory, shipping and import fees, customer service, and warantee repairs that must be covered in the cost of products. We also live in a system where the cost of commodities reflect what people are willing to pay. 

It could be worse: Nikon Camera, USA will not repair a product, even for a fee, that enters the country outside of its official distribution network. So, if you buy a gray market Nikon camera it will not be repaired by an authorized repair facility.







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So true !!
Have to chuckle when someone wants a part from my machine shop for the cost of materials, informing him I'd be happy to sell him the $962 Class-D fire extinguisher and deployment cart I have on standby just in case the titanium chips from his part catch fire... as long as I can borrow it any time I work on titanium or magnesium.

Some of that sneaky ti has even found its way onto my FX Impact.
 
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