From: mikek@iex.UUCP (Mike Keilhofer)
Subject: Re: Dealer Prices
Organization: IEX Corporation
Distribution: usa
Date: Tue, 28 Jul 1992 21:09:19 GMT

In article <1992Jul25.011944.25407@news.media.mit.edu> ereidell@media.mit.edu (Evan A. Reidell) writes:
>A music store in a rural part of the state
>sells a $299/list product for $240.
>
>A store in the city does the following:
> * tells you the list price
> * asks you "have you been shopping around?" and
>    you tell them about the store that had it for $240
> * gasps and wheezes upon hearing this, goes to some back room
>   (shouldn't he already know what the dealer price of the item is? i.e.
>    what the store bought it for...  is that what he's looking up?)
> * comes back, says:
>    "well, i don't know how they did it -- that price BORDERS ON INSANITY!
>    the best we can do is $289."  $10 less than list.  Hmm.
>
>OK, the store in the city pays more rent.  But don't they move more
>merchandise?  Do the synth manufacturers charge different prices to
>different stores depending on where they are?  I can imagine that
>various factory/dealer package deals move the price around, but by
>$50 for a $300 item?
>
>People who have worked in music stores, please email me all the gory
>details.  I always feel uncomfortable playing such price games, I
>also get paranoid that they see me and think "Oh, here's this guy
>again.  He payed list for that thing we sold him last week...  he's
>got cash, let's try to nail him again."  Which they probably do.
>
>Is it OK to start another "dealership horror stories" thread?
>
>- Evan A. Reidell

As a prior owner of a music store myself I can shed some light
on your question about pricing.

It is true that not all stores pay the same price for the same item.
Pricing is based just like the rest of the merchandising world. The
more you buy, the better the discount. Also, most manufacturers
run occasional specials. These are due to overstacking, nearing the
end of a model, or even nearing the end of a fiscal year.
Specials are also usually qauntity sensitive.

The bottom line is that the guy who can move the most quantity
will get a better pricing structure and can afford to sell for
less. And these are typically your mail order houses and large
stores. The small mom and pop music store must attract buyers
with some other means than pricing or they don't last long.

It's been 15 years since I owned my store but I still keep in touch
with other store owners and can therefore tell you that things
haven't really changed. A good salesman (from the stores point of view)
will always feel out a customer and charge as much as possible.
It is up to you, the purchaser, to determine if the price is
reasonable. I won't buy anything unless I get at least 20% to 22%
discount and usually look for 25% to 30%. You can always find
someone that will provide agressive pricing - if you look
long and hard enough.

My main complaint with most stores today is that they do no better
job of selling than Kmart. The sales people don't know the product
and must look for answers in sales literature (which I can do myself)!
They are, therefore, nothing more than clerks.

I prefer music stores that use working musicians as sales people
and can give me some insight beyond the marketing hype.

Michael K.

==================================================
Michael Keilhofer          
IEX Corporation            (214)612-2600 (work)
Email: [uunet!]iex!mikek or mikek@iex.com
==================================================

Comments: Gated by NETNEWS@AUVM.AMERICAN.EDU