Half Off on Gulf Coast Spas?

[Wisoki]

I take customers right over to my computer at work log on to the jacuzzi dealer community into the x files area of the site, take them directly to the msrp page and pull it up from the Jacuzzi dealer site. An actual MSRP set by the manufacturer. It's a couple thousand higher than what I sell the spas for and includes nothing but the spa and cover. It is a very helpfull sales tool.

[thearm]

[I'm standing by my claim that suggested retail is a fairy tale.  

Brewman,
I have to respectfully of course disagree with you on this one. It certainly depends on the item but I work for a company that will remain nameless but sells in excess of 2 Billion dollars per year of items for the Industrial Market and the bulk of this is at MSRP or List price. While I agree it does seem somewhat dishonest to mark a spa down 50%, always remember what PT Barnum said. There's a SUCKER born every minute. Also most people in business will sell at Market price in there area. What is Market price you ask? What ever the market will bear!

[Brewman]

Then your company actually uses a realistic list price.

 From my personal experience, that is not a common practice.  And I'm only speaking from my personal experience and observatons.

Again- what is the purpose of a reference price if the majority of the merchandise is sold for significantly less?  That number means nothing to me.  
 I have no doubt that it can be an effective marketing tool- it give the appearance that the consumer is getting a "deal" when in fact they're not.  That's my problem with the concept.  I'm looking at this thru my consumer eyes, not the eyes of the mfg. or seller.    My guitar in the example I quoted earlier- I "saved" 30% according to the seller.  No I didn't.  That guitar sold for exactly the same price everywhere I looked.   They should have doubled the suggested retail.  I'd have saved even more.
 
 Another example.  We used to have a discount tool store around here with their own mystery brand of tools, Buffalo I think. Cheap low quality crap- you could see how bad this stuff was a mile away.  Their put a $100 suggested retail price on a socket set and sold it for somewhere around $15, IIRC.  Those tools were in no way worth close to the $100 list price.  They were barely worth the $15.  

I've seen that practice a lot, and I personally don't care for it.  

And I also don't like retailers putting some fake "retail" price on something, crossing it out, and writing in a so called sale price next to it.  Fake sale.  
Merchandise never sold anywhere for that higher price.  
Two companies got nailed for operating this way in the not too distant past.  One was Wilson Leather, the other was Best Buy.  They were asked to prove that the offered the goods at the high price and couldn't.  Both were fined heavily for the practice.

Not the same as a "suggest retail" price, but in my opinion, not too far off either.

[Brewman]

Wish I'd found this prior to my last post.  There is an article in today's local paper about some discount Pharmacies in this area.  This is an section of that article:


Witt started taking on the drug companies about four years ago and received national attention in 2005 when he was featured on the "CBS Evening News." He became famous for refusing to charge the amount recommended by drug companies.

Tramadol, a generic version of the pain reliever Ultram made by Ortho McNeil, had a suggested retail price of $89.50, but Witt charged $6.77 at Borg Drug for 60 tablets. His reimbursement from insurance companies was only about $2, the same as his wholesale cost. Making matters worse, Witt was paid $5 to $7 less than his wholesale cost on many brand-name drugs.



Suggested retail of $89.50 when the wholesale cost to the seller was $2?  
Really useful suggested retail.

[anne]

Tramadol, a generic version of the pain reliever Ultram made by Ortho McNeil, had a suggested retail price of $89.50, but Witt charged $6.77 at Borg Drug for 60 tablets. His reimbursement from insurance companies was only about $2, the same as his wholesale cost. Making matters worse, Witt was paid $5 to $7 less than his wholesale cost on many brand-name drugs.



Suggested retail of $89.50 when the wholesale cost to the seller was $2?  
Really useful suggested retail.

I'm not sure how accurate this information is. We sell Tramadol, and could not sell it for $6.77 for 60 tabs. It would cost us more than that to purchase it. I doubt that our wholesale costs are that different than the human market.

[Brewman]

It was a quote from the local newspaper who was interviewing a pharmacist.
 
Here's the entire story.

http://www.startribune.com/1229/story/1028795.html

Don't know why the person being interviewed would a- not know his costs, and b- intentionall mis-state them.  But I can only go by what they print.

[Wisoki]

And God knows, the print media ALWAYS tells the truth!

 But I can only go by what they print.

[Chas]

Well, two companies I know of who seem to put out a MSRP which is realistic -

Apple
HotSpring

And here in paradise it is not unusual to see a car with a sticker price of $40K and then "Additional Dealer Markup" of another couple of thou - that's right, if a car is popular and the dealer is selling them, they will often mark up higher than MSRP. You may or may NOT be able to grind them down, but you're not going to get it less than sticker either way.

I have never paid that - I tend to wait to buy a car during a slow economy, the off season, or after new models come out I'll buy a 'leftover' from the previous year.

 8-)

[Brewman]

And God knows, the print media ALWAYS tells the truth!

In this case they were printing an interview.  And quoting the pharmacist- he's the one claiming what his wholesale costs were- so either the pharmacist was lying, or the paper is, I guess..

[drewstar]

 Another example.  We used to have a discount tool store around here with their own mystery brand of tools, Buffalo I think. Cheap low quality crap- you could see how bad this stuff was a mile away.  Their put a $100 suggested retail price on a socket set and sold it for somewhere around $15, IIRC.  Those tools were in no way worth close to the $100 list price.  They were barely worth the $15.  

I had thier screwdriver set (remember those with the cheap red wood handles and black tangs? I bought mine from a guy who was a proffesional "Flea market seller" I paid 3.99 On the box was printed SUGESTED RETAIL $69.99! He had shelves and shelves of crap all  with "Suggested retail" preprinted on the box.

If all the manufactuers have a responable and consitent MSRP, it can be helpful when comparing across manufactuers (like in the auto industry)  but a few dealers who do the outragous MSRP (Thermal and Master come quickly to mind). It just reeks of BS it makes them look bad. But then again, it must work, as they are selling product.

 

[anne]

In this case they were printing an interview.  And quoting the pharmacist- he's the one claiming what his wholesale costs were- so either the pharmacist was lying, or the paper is, I guess..

Or, perhaps they buy in such larger quantities than we do, so they get a discount. Either way, Tramadol is a very reasonably priced drug, and there is NO GOOD reason to charge $89 for 60 tabs except GREED.