if you were running a store, would you rather make a $4 sale, or a $99 sale?

[emmpee]

Originally posted by: GoodDad

Originally posted by: TuxDave

Originally posted by: GoodDad

Originally posted by: TuxDave

Originally posted by: GoodDad

Originally posted by: Jzero How do you know what his profit is on the items? Maybe he would make $3 on the $4 disks but only $2 on the $99 board.

either way, he would move a product. The more products he moves, the lower his cost becomes. Its how retail works, most places would do anything to increase their inventory turns....oh well. Now I know why small computer places never make it in this town.

Did you ever manage to haggle with people at Best Buy or CompUSA?

I dont go to either store very often, and when I do its for things I need or I am looking for. That being said, just yesterday I talked the manager at CrapUSA down on the price of a camcorder my buddy was looking for.

:beer::beer::beer::beer: (assuming it wasn't via pricematching to another B&M store nearby)

no, it was a discontinued camcorder that was missing a manual and charger. Retail was something like $399, I offered him $100, we met at $200. You just have to know how to haggle.

Try haggling with the CompUSA guys on a brand-new Asus mobo. You won't get very far.

 

[rudeguy]

Originally posted by: emmpee

Originally posted by: GoodDad

Originally posted by: TuxDave

Originally posted by: GoodDad

Originally posted by: TuxDave

Originally posted by: GoodDad

Originally posted by: Jzero How do you know what his profit is on the items? Maybe he would make $3 on the $4 disks but only $2 on the $99 board.

either way, he would move a product. The more products he moves, the lower his cost becomes. Its how retail works, most places would do anything to increase their inventory turns....oh well. Now I know why small computer places never make it in this town.

Did you ever manage to haggle with people at Best Buy or CompUSA?

I dont go to either store very often, and when I do its for things I need or I am looking for. That being said, just yesterday I talked the manager at CrapUSA down on the price of a camcorder my buddy was looking for.

:beer::beer::beer::beer: (assuming it wasn't via pricematching to another B&M store nearby)

no, it was a discontinued camcorder that was missing a manual and charger. Retail was something like $399, I offered him $100, we met at $200. You just have to know how to haggle.

Try haggling with the CompUSA guys on a brand-new Asus mobo. You won't get very far.

Never tried...thanks for the idea though, it will give me something to do on lunchbreak tomorow. There is a crapusa right next door to the store I work at.

 

[kami333]

Originally posted by: GoodDad

Businesses are in business to make money, not "move product." What good is sales if you lose money on every sale?

I never said I wanted him to lose money on the sale.

and to elaborate a bit on your thought:
cost of 100 widgets=4/per
cost of 1000 widgets=3.50/per

so if he sold more widgets, taking a short deal on some of them, he would make more money in the end.

But for a lot more work too. It's a balancing act.

There's always the scenario of what if it doesn't work and you come to return it? Now he has to go through the hassle of doing the store's version of an RMA, all for might have been a $10 profit.

Also giving in once to haggling could start a trend, you telling your friends and they all coming in expecting deals.

If his business model doesn't work, then you'll soon see him gone.

 

[IshmaelLeaver]

Just buy the mobo online. He'll go out of business soon enough.

 

[Thegonagle]

Would you rather make $10 on a sale today, or $40 tomorrorow in addition to the $2 he made on your floppies?

It's just business. Either his strategy works for him and he holds out and gets his $40, or he holds out, doesn't get the $40, but reduces the price and gets $10 anyway (plus the $2 he made on your floppies).

 

[zimu]

that is pretty annoying. i wish you could put up a big sign outside his door saying "buy it online for $30 cheaper!"

 

[Corporate Thug]

if the 4 dollar sale yield $3 in profits and the $99 sale yield a $1 profit, i'd rather make the $4 sale

 

[yukichigai]

Originally posted by: zimu
that is pretty annoying. i wish you could put up a big sign outside his door saying "buy it online for $30 cheaper!"

If you stand on public property outside with such a sign I think you can, as long as you aren't being loud/disruptive. It's how picket lines get away with it.

Anyway, if I ran a store I'd do like the local groceries do: offer a "10 for $10" sale on Sudafed, which is rendered absolutely useless since local laws limit the amount of Sudafed sold to 2 12-capsule boxes per person per day. Great huh?

 

[TitanDiddly]

When did bargaining at retail stores become acceptable again?

 

[yukichigai]

Originally posted by: PhasmatisNox
When did bargaining at retail stores become acceptable again?

When computer parts started being sold for as much as car parts.

 

[TitanDiddly]

Originally posted by: yukichigai

Originally posted by: PhasmatisNox
When did bargaining at retail stores become acceptable again?

When computer parts started being sold for as much as car parts.

| <3 teh n3w399

 

[Bootprint]

How much was shipping going to be for the motherboard? Then you calculate in having to wait, and hope it's not busted.

 

[rudeguy]

Originally posted by: Bootprint
How much was shipping going to be for the motherboard? Then you calculate in having to wait, and hope it's not busted.

people pay for shipping???

Text

and thats buying it from newegg. His price was $169.99

 

[Noirish]

Originally posted by: GoodDad
Just swung by the local computer shop to pick up some floppy disks. I wandered over by the motherboards and saw an Asus I had been looking at. Their price was about $30 more than the most expensive place online had it for. After talking to the guy (pretty sure he was the mananger) for a while, I asked if he could come down a little on the price. He said no. I told him I was either going to get the mobo or the floppies, and that I just wanted to get a deal. No deals...so I just bought my floppies and left.

Wouldnt you want to sell the motherboard even if you only made $10 on it??? The floppies were only $4!!!!

After reading some of your responses, why don't you open a store?
I'd definitely come and buy a mobo which you only make $10, hack, I'd buy 10 so you can make $100.

 

[rudeguy]

Originally posted by: orangel

Originally posted by: GoodDad
Just swung by the local computer shop to pick up some floppy disks. I wandered over by the motherboards and saw an Asus I had been looking at. Their price was about $30 more than the most expensive place online had it for. After talking to the guy (pretty sure he was the mananger) for a while, I asked if he could come down a little on the price. He said no. I told him I was either going to get the mobo or the floppies, and that I just wanted to get a deal. No deals...so I just bought my floppies and left.

Wouldnt you want to sell the motherboard even if you only made $10 on it??? The floppies were only $4!!!!

After reading some of your responses, why don't you open a store?
I'd definitely come and buy a mobo which you only make $10, hack, I'd buy 10 so you can make $100.

LOL...thats the kind of store I work at. We take short deals, but we also take good deals too. I guess I am just used to our way of doing things.

 

[gunblade]

Originally posted by: GoodDad

Originally posted by: Bootprint
How much was shipping going to be for the motherboard? Then you calculate in having to wait, and hope it's not busted.

people pay for shipping???

Text

and thats buying it from newegg. His price was $169.99

The difference is really a little bit excessive. That is at least a 50 buck profit right there and then.

 

[waggy]

wow some people need to take eco 101.

if he sales 100 widgets for $4
or 1000 widgets for $3.50

First off its doubtful the market would deal with the extra 900 widgets. If there was such a market there would be more places making widgets. Now if he was making 100 widgets and saleing them for $4 thats because 100 widgets don't take all that long to make. NOW making 10x the amount is going to increase things such as overhead, storage, time to sale them etc.

now the profit off the 100 may not be much less then the profit off 1000 of them. UNLESS the market is in dire need of those widgets.


anyway. You have NO way of knowing what the store owner bought the motherboard at. he may not be able to go down on the price. Why make a $4-10 profit on the deal? when the odds are someone might buy it for the $169?

bottom line is its his store. he can run it the way he wants.

 

[rudeguy]

Originally posted by: waggy
wow some people need to take eco 101.

if he sales 100 widgets for $4
or 1000 widgets for $3.50

First off its doubtful the market would deal with the extra 900 widgets. If there was such a market there would be more places making widgets. Now if he was making 100 widgets and saleing them for $4 thats because 100 widgets don't take all that long to make. NOW making 10x the amount is going to increase things such as overhead, storage, time to sale them etc.

now the profit off the 100 may not be much less then the profit off 1000 of them. UNLESS the market is in dire need of those widgets.


anyway. You have NO way of knowing what the store owner bought the motherboard at. he may not be able to go down on the price. Why make a $4-10 profit on the deal? when the odds are someone might buy it for the $169?

bottom line is its his store. he can run it the way he wants.

your thinking is very flawed. First off, the market could definately handle more of his widgets (motherboards,) how many B&M places do you know of to buy computer parts at that will give you a fair deal?

Secondly, he is not making the product, he is selling it.

Lastly, why not make $4 on a sale? Its cash in his pocket. He has to pay the same overhead costs whether he makes the $4 or not. And yes, it is his store. I am not mad at the guy, I just dont understand why you wouldnt want to put cash in your pocket. Its kind of like saying that you dont want to pick up that $5 bill on the street because you are saving room in your pocket for $100 bills.

 

[911paramedic]

I don't know why, but I just thought of this. When MTV lauched the first song was (I believe) :music: "Video Killed the Radio Store" :music:

While reading this thread I was singing :music: "Internet killed the PC store" :music: to myself.

 

[rudeguy]

Originally posted by: 911paramedic
I don't know why, but I just thought of this. When MTV lauched the first song was (I believe) :music: "Video Killed the Radio Store" :music:

While reading this thread I was singing :music: "Internet killed the PC store" :music: to myself.

LOL

:beer: cheers!

 

[fyleow]

If he was smart he would have priced the motherboard at the equillibrium point of supply/demand for the area. Yes, he could have sold more motherboards for cheaper but that doesn't necessarily mean more profit. The quantity demanded of that Asus motherboard in the market might not be high enough to balance the lower marginal revenue. Just because you think the price is outrageous doesn't mean other people feel the same way. The product obviously sells if he is unwilling to lower the price.

If you're so concerned about the price and can find it so much cheaper online, just but it online.

 

[rudeguy]

Originally posted by: fyleow
If he was smart he would have priced the motherboard at the equillibrium point of supply/demand for the area. Yes, he could have sold more motherboards for cheaper but that doesn't necessarily mean more profit. The quantity demanded of that Asus motherboard in the market might not be high enough to balance the lower marginal revenue. Just because you think the price is outrageous doesn't mean other people feel the same way. The product obviously sells if he is unwilling to lower the price.

If you're so concerned about the price and can find it so much cheaper online, just but it online.

Its not that I am concerned...just confused as to why he wouldnt want the money. I didnt ask him to match anyone's price, just to come down a bit on it. Honestly, I brought along a couple extra bucks ($190 to be exact) just in case I found a mobo I liked. The guy didnt try to sell me on why I should buy it at his store, didnt try to build value into buying it from a local company, didnt try to get the sale at all.

When I asked him if he had any other recomendations for boards that are good for over clocking he said, "That we sell, no."

meh...I guess I just like to be sold

 

[RagingBITCH]

Originally posted by: GoodDad

your thinking is very flawed. First off, the market could definately handle more of his widgets (motherboards,) how many B&M places do you know of to buy computer parts at that will give you a fair deal?

Secondly, he is not making the product, he is selling it.

Lastly, why not make $4 on a sale? Its cash in his pocket. He has to pay the same overhead costs whether he makes the $4 or not. And yes, it is his store. I am not mad at the guy, I just dont understand why you wouldnt want to put cash in your pocket. Its kind of like saying that you dont want to pick up that $5 bill on the street because you are saving room in your pocket for $100 bills.

Why make $4 on a sale when he could make $40? The next guy that walks through the door could have bought it for the $169 he was asking for. Opportunity costs - by choosing not to sell it to you and make $4, he could end up with nothing. Or $36 more dollars.

No business would stay in business by constantly slashing their profit margins to meet the demands of consumers who want it at their price. Then again, the guy could learn to price at the equilibrium price as opposed to well above it. You're obviously more educated in terms of the market price on the motherboard, but just because you are and you're not willing to pay him $169 doesn't mean someone else won't.

Its not that I am concerned...just confused as to why he wouldnt want the money. I didnt ask him to match anyone's price, just to come down a bit on it. Honestly, I brought along a couple extra bucks ($190 to be exact) just in case I found a mobo I liked. The guy didnt try to sell me on why I should buy it at his store, didnt try to build value into buying it from a local company, didnt try to get the sale at all.

Maybe he was offended that you were trying to bargain with him. But in any case, would it really have mattered what he had said? I doubt it. If he had said he purchased the motherboards from a retailer for $160 and is only making a $9 profit on it, would you still have bought it? If he helps sponsor his son's baseball team and some of the profits from sales goes toward the team, would you still have bought it despite it being $50 higher? He shouldn't have to try to force or get the sale on an item that you're trying to bargain down on.

 

[SagaLore]

Originally posted by: Jzero
How do you know what his profit is on the items?
Maybe he would make $3 on the $4 disks but only $2 on the $99 board.

Right. I use to work at a computer store. The markup on the high priced items are amazingly low, and then when you factor in the cost of keeping it stocked, having it shipped, and all the other expenses - you barely break even. The money makers are the less expensive items. Kind of like how a restaurant will charge you $1.25 on soda that cost half a cent. Or like how gas stations make money off the snacks/coffee people buy, but barely break even on the gasoline.

The guy wouldn't budge on the motherboard because by having that motherboard on the shelf, it attracts customers to buy those floppies.

 

[AmericasTeam]

Originally posted by: SagaLore

Originally posted by: Jzero
How do you know what his profit is on the items?
Maybe he would make $3 on the $4 disks but only $2 on the $99 board.

Right. I use to work at a computer store. The markup on the high priced items are amazingly low, and then when you factor in the cost of keeping it stocked, having it shipped, and all the other expenses - you barely break even. The money makers are the less expensive items. Kind of like how a restaurant will charge you $1.25 on soda that cost half a cent. Or like how gas stations make money off the snacks/coffee people buy, but barely break even on the gasoline.

The guy wouldn't budge on the motherboard because by having that motherboard on the shelf, it attracts customers to buy those floppies.

Gas stations make decent money selling gas. Especially here in Cali.

As for the computer part - just like any other business
Its all about the GP