Mark up on appliances must be crazy high

[MarkXIX]

This is 100% not true.

Manufacturers set the MAP. In general on appliance you are looking at around 20% margin. Some are higher, some are lower depending on the situation and product. At the appliance store I used to work at, we were in deep with Whirlpool. We would commit to buy a very large number of pieces and had a nice margin to work with on them. But if you wanted a GE, we had maybe 10%.

There were also times the manufacturers would drop the cost of certain models to boost sales or clear them out. A lot of manufacturers also cover the damage allowances. That is the $100 the OP got for the dent. Its cheaper for them to pay out $100 than to send a repair guy out to replace parts, so its very common and negotiated into most buying contracts.

I did over 8 years managing the appliance and electronics business. But its great that ignorant people like you continue to post shit that you read on facebook.

LOL! I see this on the government contracting side too. I'm not saying it doesn't happen in many areas, but for commodity type items the government gets some pretty sweet deals.

If I could get the same cell phone plans we get for our smart phone devices I'd be happy as a hog in mud!

You can usually get waster/dryer sets on craigslist dirt cheap. Appliances are heavily marked up like furniture. But if you try to purchase this from someone else they are willing to take a price hit due to the cost of moving. They just want the shit gone.

I have a mental block on this as soon as I think of some other dude's pubes floating around inside the washer. Of course, I BARELY use public restrooms too...

 

[who?]

It's false advertising to say that something regularly sells for a price unless you can show actual sales at that price.

 

[DAPUNISHER]

This is 100% not true.

Manufacturers set the MAP. In general on appliance you are looking at around 20% margin. Some are higher, some are lower depending on the situation and product. At the appliance store I used to work at, we were in deep with Whirlpool. We would commit to buy a very large number of pieces and had a nice margin to work with on them. But if you wanted a GE, we had maybe 10%.

There were also times the manufacturers would drop the cost of certain models to boost sales or clear them out. A lot of manufacturers also cover the damage allowances. That is the $100 the OP got for the dent. Its cheaper for them to pay out $100 than to send a repair guy out to replace parts, so its very common and negotiated into most buying contracts.

I did over 8 years managing the appliance and electronics business. But its great that ignorant people like you continue to post shit that you read on facebook.

You post good content with real substance sometimes. thumbs high

 

[DAPUNISHER]

LOL! I see this on the government contracting side too. I'm not saying it doesn't happen in many areas, but for commodity type items the government gets some pretty sweet deals.

If I could get the same cell phone plans we get for our smart phone devices I'd be happy as a hog in mud!



I have a mental block on this as soon as I think of some other dude's pubes floating around inside the washer. Of course, I BARELY use public restrooms too...

Thank you Sheldon.

 

[darkswordsman17]

This is 100% not true.

Manufacturers set the MAP. In general on appliance you are looking at around 20% margin. Some are higher, some are lower depending on the situation and product. At the appliance store I used to work at, we were in deep with Whirlpool. We would commit to buy a very large number of pieces and had a nice margin to work with on them. But if you wanted a GE, we had maybe 10%.

There were also times the manufacturers would drop the cost of certain models to boost sales or clear them out. A lot of manufacturers also cover the damage allowances. That is the $100 the OP got for the dent. Its cheaper for them to pay out $100 than to send a repair guy out to replace parts, so its very common and negotiated into most buying contracts.

I did over 8 years managing the appliance and electronics business. But its great that ignorant people like you continue to post shit that you read on facebook.

I love how you say it's 100% not true then your whole argument actually supports what I said. 20% is plenty of margin and is exactly what I was talking about. And I know there's plenty of products that are even higher than that. It depends on the products, the brands, and the stores. Talk about ignorant. But nice stupid dig, durr must be Facebook myth. Um no, actually read up on the business models.

Next you'll try to argue that furniture stores really do go out of business every other weekend! .

Also, you do realize that just because the store has a certain margin doesn't mean that's the actual margin on the product, right?

 

[EliteRetard]

Their cost for that couch is around $200-300.

Probably, and I'm fine with them making some money. There are reasons they have such insane MSRPs though, like all the morons who just take it as is (or for some pittance sale). It's also an attempt at the "Apple effect"...that is if your product is far more expensive than everything else, it must be far superior. Many people love to brag about how much they spent on stuff...I know many of them myself.

Some of them are actually cheap-asses though, but don't want to take the time to get a good deal...these are the people you can make money off of since they will pay you far more than it's worth, as long as it's less than MSRP. That's also why fakes/knockoffs are popular too.

 

[Tweak155]

Got my set for $450 from a friend. Thank you friend.

 

[rudeguy]

I love how you say it's 100% not true then your whole argument actually supports what I said. 20% is plenty of margin and is exactly what I was talking about. And I know there's plenty of products that are even higher than that. It depends on the products, the brands, and the stores. Talk about ignorant. But nice stupid dig, durr must be Facebook myth. Um no, actually read up on the business models.

Next you'll try to argue that furniture stores really do go out of business every other weekend! .

Also, you do realize that just because the store has a certain margin doesn't mean that's the actual margin on the product, right?

I know the owner of one of those furniture stores. She was one of the first people in our town to use the guys with signs on street corners. They had signs that said something like "STORE CLOSING 50%-80% OFF!!!" I swear they were standing on the corner for 6 months.

And yes, I totally understand how margin works. Its not like the good old days when I started in the game where margin was margin. Now there are so many kickbacks, ad rev, finance terms, all kinds of crazy stuff that I doubt anyone knows what true margin is any more.

But what do I know about this kind of thing?

 

[StrangerGuy]

My favorite tactic of furniture salesman:

Listed price of a mattress = $700
"We give you a $100 discount, with a FREE bedframe!"
*Me walks out without buying when the both sells for much cheaper online after a quick Googling*

 

[jagec]

So, it's hard to understand when you buy something if you are getting a good value. Most Frigidaire "gallery" series are the ones that have more quality parts, fit & finish. GE "Profile", Kenmore "Elite", etc. You might find a non "quality" product but it is maybe just as expensive as their fancy version or even more....don't mistake that for getting increased quality.

Price doesn't always = quality

But then it won't say "Sub-Zero" on it, and all of your Manhattan friends won't be impressed. Duuuuuhhh...

 

[Jeff7]

I bought an LG red front loader set. Dryer brand new for $249, washer was $600 after a short haggle for a display model. I can imagine they still made money off of me. "Retail" was something like $2800 for them. I feel bad if folks are getting hosed by the whole discount phenomenon, not like that hasn't been going on in the appliance realm for forever.

If they let you leave their store with some appliances, they did alright in the transaction.