I do not care what you can get one for. Just passing on the info gotten from Corsa. Didn't intend to get your panty's in a bunch.
Your statement confuses me. On one hand you state that being in business you want to buy as low as possible and sell for as much as you can and while keeping customer loyalty. In todays internet society I personally do not believe that customer loyalty is truely alive. Where as in the retil store front there still is some. Just look at the string of people same products that some must have at the lowest price they can find. Loyalty?
A a retailer we want to make a reasonable profit margin. When a product gets whored out ( Very low profit margin, as in the case of the Corsa deal, less then 10% markup) a retailer will look for a higher profit margined product of equal quality. Example for the most part Corsa, Borla and others are fairly equal in the public perception of quality. So if as a retailer I can only sell Corsa at a 10% markup to compete with the whores , where as I can sell another brand for a 40% mark up. Which do you think a dealer will market.. Less dealers stocking them, less the mfg. will sell.
Perhaps you next argument will be the "Walmart " mentality, the less I mark up the product the more I will sell and the more I will make. Unfortunately this is not always the case. A retailer will make more profit $$ selling one unit at 40% markup then 5-7 units at a 10% markup..Why Overhead: payroll, inventory cost of lower priced units, storage, taxes, inventory $$ sitting around. It costs the retailer more payroll $$ to handle 6-7 transactions then 1, they have more inventory $$ sitting around if they need to sell 5-7 units to equal the profit of the one other.
So if retailers shy away from the lower profit product lines, then the only stocking dealers for the mfg will be the price whores. Price whores in any industry are generaly short lived and go out of business. Yes some will survive. However a mfg. can not survive if their distribution base is to narrow. This leaves the distributors dictating to the mfg. Such as anumber of mfg who deal with Walmart found out the hard way. This is one of the reasons Corsa does not want their product line whored out. They want their dealers to push their product rather than the competitors.
I'm all for captiolism, Hell I'm a retailer in the firearms business and more recently expanding into the Truck/SUV accessory business.
The firearms business has been one of the most whored up industries for years. This was allowed to happen by the major mfg and distributors. Only recently has the industry attempted to change it. Most of the Distributors and dealers who had the give it away mentality are no longer in business
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by 89vette:
What do you care if we can get a good price on the Corsa exhaust? By paying hundreds more what are you proving? Sounds stupid to me. Your argument about the product not being stocked as much and the company goes away is about the dumbest thing I have heard. If anything they would sell more units. Lower the price and sell less units?
I would imagine that Corsa wishes to keep a broad distribution system for a product that is thought of as one of the highest quality products on the market. Rather then as one of the least expensive.
Again, I do not give a rats ass what you buy things for. was just passing on some the info I was given.
Ps Sorry for the spelling an drun on sentences.. I have a tendency to type the way I speak.
Mike
www.popguns.com
A
I'm in business and the name of the game is buying something for as little as you possibly can and selling your product for as much as you can. The balance is to do it and still maintain customer loyalty and satisfaction. What you are seeing is capitalism in action. The very thing that makes us (Americans) unique and what enables us to purchase things like H2's. Thank God for Republicans.
03 Sunset H2!
89 Vette
02 Escalade<HR></BLOCKQUOTE>