Thermospas

[Mez]

I am a buyer for a wholesaler/distributor and I have to chime in here. If you guys new what retail outlets pay for goods you buy everyday you would be disgusted and calling just about every business thieves and liars. I am talking retailers that upcharge 200-300%! Dont you ver wonder how stores have 50% off sales? Do you really think they are losing money? Is it right for someone to pay $40 for an item and 2 weeks later it is marked down to $20?
Not that I am defending the practice of this company and their sleazy sales tactics but it goes on everday, everwhere.

[Steve]

I agree Mez that some industries (jewlery for example) have very high profit margins but we as consumers have the ability to shop around and educate ourselves to determine the best value we can. In a competitve industry like spas where only a handful practice these tactics, the best we can do as consumers is not support them. That's our point here.

I also suggest that many of these 50% off sales start with inflated "regular prices" or MSRP'S that the item has never been sold at in an attempt to show value. We are so use to "sales" that we as consumers don't find it a decent sale until it's 50% off or more so retailers now have to become creative to find these discounts. It's called perceived value...

Steve

[Mez]

I agree Mez that some industries (jewlery for example) have very high profit margins but we as consumers have the ability to shop around and educate ourselves to determine the best value we can. In a competitve industry like spas where only a handful practice these tactics, the best we can do as consumers is not support them. That's our point here.

I also suggest that many of these 50% off sales start with inflated "regular prices" or MSRP'S that the item has never been sold at in an attempt to show value. We are so use to "sales" that we as consumers don't find it a decent sale until it's 50% off or more so retailers now have to become creative to find these discounts. It's called perceived value...

Steve

Steve, I agree with the points you make. Percieved value is the key to nay business. I personally am a huge fan of EDLP, every day low pricing but the 100+ companies I buy from dont like it because of the perception. So everyday I am blasted with "sales", buy-downs, bill backs, tracking reports and so on to support this so called perceived value. It is a helluva lot of work for nothing in my opinion.
I agree an educated buyer is a dangerous one. Walk into a car dealer armed with true cost vs. what they claim is their "invoice cost". Tell tehm to take off the regional ad fees they are paid, the backside money they are paid based on total volume sold vs. quotas, etc. Watch the sales manager change a tune as you say you will just go to the next dealer and get the deal you want. That goes for just about anything.
I personally dont like the high pressure, sale today, buy it today, price goes up tomorrow tactics a lot of these dealers use, but some people (the uneducated) must buy into it more often than not or they would cease to use these gimmicks,

[Mez]

I hate those things. They call it a "warranty", but it's not. It's an insurance plan. Can you imagine going into a car dealer, and after you buy the car they say "now make sure you buy a good insurance plan for this, because you're going to need it." They're either ripping you off or telling you not to trust their product. You lose both ways.

LOL...dont most(all) dealers try to sell the consumer and extended warranty when they purchase an automobile? Yes, they are ripping you off, same with rustproofing, undercoating, paint sealant, fabric care and the rest of the b.s. "fluff they push...but that is where the sales skills come into play and a rep makes a decent chunk off of a sale. My favorite thing to do when buying a car and they try to push the paint sealant is to ask the rep...why do I need it? They come back with "to protect the paint from UV rays...I reply, so what you are telling me is the paint job on this car is no good? Hahaha...they shut up real fast

[Brewman]

Those add-ons are where the profits come in.  Car dealers make a minimal profit on the car, but a whole lot more comes from the sale of extended warranties, paint and fabric protection, selling insurance and they even get a few bucks if they place the loan.  
 Same holds true for electronics.  They try and scare you into buying the extended warranty.  Even on cheap stuff like a $25 phone, they try sell you a warranty.
 It's amost all profit on those.