Thanks for the posts. Let's say it's NOT a typo.  

If anyone wants to know how Amazon works with products also submitted
by third-party you can ask me to post or PM.  

In short, many don't know Amazon depends on OVER 30% of their revenue
coming from third-party vendors that essentially act as drop-shippers
for Amazon.  There are several vendors on Amazon selling Squeezebox -
including Slim Devices itself.  Many don't realize that.

So in the case of the Squeezebox, when an item is submitted for listing
there is a wizard that polls the SKU.  As some members saw, it is on
there for $399 and also at $299.  It's the listing that Amazon itself,
e.g. this item sold by amazon, that has the marked price decrease and
31% off. The majority have the list price at $299.

Why would they do that?  They are competing with other vendors, even
Slim Devices who sells on Amazon.  So a smart customer looking that the
product is available from the manufacturer might lean toward purchasing
on that listing.  Either way amazon makes some money, e.g. maybe 10% on
electronics.  But even with a reduced $274 price it makes more money
selling the product itself.

So why the higher percentage and price cut?  If you do a search for
Squeezebox, Amazon will change the order of the results.  You might see
how a third-party selling a similar product as them would complain if
Amazon results are first all the time.  

So they put themselves lower but if you are still in the top three and
there is a price cut and a perceived huge discount, which would you
click?  Keep in mind they still have to compete with Slim Devices
giving a 30 day satisfaction guarantee.  If other vendors complained,
they'd be oops a typo change it to $299 and you'd see less than a 10%
discount. Single digit wouldn't be so appealing.

Anyhow, this is getting off topic but my original post and another post
from someone today about a $249 Fry's price on SB3 brings me back to the
original question.  

We are seeing some discounting, why?  Did sales not meet expectations
in the retail chains where reps are pushing Sonos? Excess supply?

What is the longevity of Squeezebox 3?  Is there perhaps a Squeezebox 4
on the way?

Just food for thought


-- 
darwinl
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View this thread: http://forums.slimdevices.com/showthread.php?t=41227

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