Ah roger that.
Exactly. Distributors and importers set the "wholesale" or "trade" price to store or retailer. They (retailers) can sell for whatever margin they want or even give it away.......
However generally nz retailers will default to blaming manufacturer or importer when things are not going their way!
Trust the dog.........................................ALWAYS Trust the dog!!
I can see many of you guys have not worked in the originator part of the supply chain. If you have good products the last thing you want is a few retailers cutting the guts out out of the price. It leads to a vicious price spiral, no one makes any margin and you loose support of your dealer network.
There is a legal way to manage price in our markets that gets around price manipulation McNotty. Its widely used, for example proprietary ag chem products, Miele whitegoods , as are many other products and possibly some Austrian made scopes also.
The product is "owned" by the supplier until the point of sale. On sale, the retailer is paid a fee for promoting the product, making the sale, collecting the cash and handling any product issues. The margins are good because there is no price erosion, less working capital is employed, and dealers like it.
I currently do and have done for last 3 years, not sporting, and there comes a time as a supplier that you need to dictate pricing to merchants or resellers for both to win jobs, especially when the work market is low V the volume of people tendering for the jobs is high. And it works well, especially if the middle man is just clipping a ticket and dont touch the product....if i find the business i will have a discussion with the middle man around the margin they should set in the above scenario..... if they dont like it there are other merchants that are happy for the margin for no work involved....
Hamish
Contact me for reloading components, brass, projectiles, powder, primers, etc
http://terminatorproducts.co.nz/
http://www.youtube.com/user/Terminat...?feature=guide
Mate, it’s not illegal behaviour if you do it the right way. You change the business model slightly, that all.
Don’t get me wrong I like a deal but sometimes you have to decide if full ticket pricing is worth it.
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