On 6/4/03 6:56 AM, "Eric Dunbar" <[EMAIL PROTECTED]> wrote:

> (these items aren't without warrantee... it's just that you have to deal with
> the US branch for service).

Don't bet on it. In terms of cameras, manufacturers have been known to
refuse to honour warranties unless you have a US address.

> I don't quite get why some stores simply won't budge on prices. Not too long
> ago walked out on a $1000 sale (HP Laser) because they wouldn't budge by $100,
> even when I *knew* the margin was well over $100 (the next place I went to
> sold it to us for $874, $30 *below* the academic price even)).
> 
> I guess I'm rather ignorant of microeconomic theory but I thought that as long
> as the retail price was higher than the inventory price, a retailer was better
> off moving the stock rather than sitting on it and losing a sale to someone
> else.

I worked in retail (camera sales) for many years. There's a lot of things to
consider, like the fact that you don't "know" what the margin is. Margin
includes a lot more than just the price from the manufacturer.

If you had come into my camera store, you would have found us unwilling to
budge on prices, and completely unconcerned about you heading off to a
discount wholesaler.

The reason for that in my shop you're paying for more than just the item
itself. We're not concerned about making an individual sale, but the focus
is more on providing service and creating a loyal customer. You're also
paying for selection, and the environment you're shopping in.

We've heard enough on this list about say, Future Shop, and the problems
with their sales staff. That's the difference - when you're "our" customer,
we do everything we can to help you before and after the sale.

And this is a remarkably successful business strategy. There's a maxim
taught in marketing courses that it's better to have a returning customer
than create a new customer every time.

There's no shortage of customers out there that are smart enough to be
willing to pay for service - that's why a high-end retailer doesn't care if
you go off to a wholesaler.

Keep this in mind the nest time you try to haggle with someone who isn't
willing to. Ask yourself why they're still in business, if their prices are
too high?


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