Originally posted by: HumblePie
A lot of my friends (the manager ones ) told me that they do jack up the prices quite a bit in order to make a huge profit on some of the items. But a result of doing this also allows the manager to sell the item at a lower price. A majority of the customers won't bother haggling/negotiating with the CSR and so the stores make off with quite a bit of money. Do you really think the memory stick which is being sold everywhere else for ~$120-130 and whose MSRP is $299 really costs Staples anywhere near the $349 price they're charging for it? Do you really think Worst Buy and Circuit City really paid hundreds of dollars for crappy Monster cables/products?
I will agree with you to a point about your new tv model example. But even with a new model, you can always negotiate with the CSR/manager.
Sigh, the only products with a built in high margin are periphials, car audio speakers, protection plans, installaion, and repair services. Those are the products with high markups as you put it. Here, let me show you some fun examples....
USB cable. Standard 6 foot usb cable of no maor brand sold in CC or BB or just about anywhere for $25 bucks. At one point, 2002 and before when it was commission based, and for 1 year AFTER it was no longer commission based at CC, the employ cost for that cable was $3. That means, any employee could waltz right in there and buy that cable for $3. However, at the end of 2002, employee "price" had changed. That cable now costs an employee $18 and as such a normal customer isn't going to get much of a discount at all because it shows up in the system as COST being $18. The original cost didn't change for Circuit City but it did change for the store. Tecnically, each and every store gets it's wares from the main CC corporation and are given a cost. That cost is paid by each individual store. This is how franchises operate. The selling price hasn't changed but the way the store does business has. Why? The pay structure changed. Before, if a CC store sold that cable, they would have to pay CC corp $3 for a new one, and a percentage to the employee (commission) and to the manager of that employee. Back in the day, employees, the local store, and managers had plenty of wiggle room but they didn't always like to wiggle because anything they took off was money from THEIR pockets.
Now, since everyone is hourly, the minimum price for the store is $18 on that cable so if one is sold, that is how much corp gets paid for that while the store gets $7 and the employees and managers get zero. Not so much wiggle room anymore. Some items, you'd be surprised, are sold near cost, at cost, or even below costs the majority of the time. These are the big dollar items with plenty of periphials to go with it. Computers, TVs, Camcorders, and game consoles are examples of this. You go in looking for a discount on a Camcorder and you might as well talk until you are blue in the face. It's not going to happen. Buy an extra battery or two, a bag, protection plan, tripod, extra storage media, a USB cable, some TV cables, and anything else that camera can use and you might, just might get a discount. Usually not though but it depends on how much you are buying.
This gets back to option 3 though of circumstances where you can haggle some. Then again, you are overpaying on almost every item so it's easy enough to give a discount. Overpaying on 1 item compared to an online site isn't going to get you a discount. Walking into the store to buy a USB or monster cable and expecting it cheaper then the lister price isn't going to happen. Even then it still a crap shoot as to getting the discount. I've also NEVER EVER heard of someone getting quoted on a discount price over the phone and bothering to haggle. Dude, you called anyone in my store, the most you'll get out of us is directions to the place, what we have in stock, and the price off the tag. Anything else and you are going to be disconnected mysteriously all of a sudden or if we are being polite have an urgentcustomer in real life with cash in hand to deal with. We don't and aren't suppose to do anything else on the phone.
Based on the fact you said you talk to people on the phone for a deal and use internet sites as competition... LOL, I know at this point you are full of sh~t. Seriousy, stop posting because you are making a fool out of yourself.