My Dad told me the manufacturer creates the product then doubles their money on it--they sell to the distributor who then doubles his money--He sells it to the retailer, who then doubles his money.
Having worked in some retail that is not how it really shakes out, at least not for a lot of it. Where Wife works if she is paying $10 for an item they then sell for $20 they do not just double their cash in the sense many think of it. Out of that extra $10 they then have all the hands out wanting a piece of that 10. This was why grocery stores for decades would not take plastic. Their margin was too thin to absorb that cost. One day one big chain decided to take plastic, just passed the cost off, so others soon had to follow. I have also worked years in a distributor. We did not even come close to selling stuff we paid $10 for $20. I knew as I could see our price and could buy from us at real cost. We made our profit by buying stuff in huge quantity and selling the same way. There is probably some items that are rare and such where there is that kind of markup but it is far from the normal.
You always have to factor down with the expenses though. Mark up is one thing, profit is another.
Suuuuuuuuuuure you were...I was REFERRING to a buying a couple of cups of restaurant coffee!!
That's my narrative, and I'm sticking to it!Suuuuuuuuuuure you were...
Quoting my own previous post. There is another line of business where this practice is very common. Precious metals dealers and coin dealers. Almost universal with bullion purchases. Some coin dealers will take CC without laying the charges back on the customer if it's a collector coin. Because their margin is wider on those. On bullion and bullion coins, the margin is more competitive and well-defined.
You woulda liked selling me gunz. I just pay what's on the sticker, NQA. If I think it's too high in my opinion, then I just don't buy it. No need to haggle...
If you didn't want to give discounts why did you do it in the first place?
For many years I didn't give a discount but near the end of my gun selling I realized it was better to take $5-10 off and sell another gun, even if I only made $40 on it because many cheap bastards will simply walk away rather than pay what anybody was asking, if they didn't get some kind of discountIf you didn't want to give discounts why did you do it in the first place?
Why did you keep doing it?
If I know some dealer will haggle, I'll go there and shop because haggling is part of the fun.
I always ask if there's a cash discount when dealing with contractors and other shops with what I consider a "big ticket" items. And I've never held a gun on any of them. They either say yes or no. You can too.
I think most everybody is OK with a cash discount, unfortunately the standard contract the credit card processors use say the card is to be treated as cash, which means that no cash discount is offered
My Wife actually tipped the dealer last time she picked up a gun. Price ended something like $2 and change. She gave them $5 over and said keep it. We have been dealing with the people since they opened couple decades back and like them.
I agree. I weigh and measure whatever I am selling list and list a flat rate for shipping. It also makes immediate checkout easier for buyers.
