Klarinet Archive - Posting 001110.txt from 1998/04

From: Lee Hickling <hickling@-----.Net>
Subj: Re: Mouthpiece Information--Retail v. Warehouse
Date: Mon, 20 Apr 1998 15:40:12 -0400

Kevin J. Fay wrote:

>I understand that local music stores think they need to charge more than
>the "warehouses." It is not true, however, that the WW & BW get a
>better price--what they may be selling at less than your purchase price
>is last year's inventory. The Robinson-Patman Act disallows volume
>discounts among sellers at the same level of distribution.
>The real reason that their prices are lower is that their margins
>(profits) are lower--they gouge less.

And nobody would dream of violating the Robinson-Patman Act, right?

Your argument is not supported by anything in my experience. I've worked
for local music stores, and I still work in one, as a teacher. There are
three locally-owned music stores in this area. None of them sell at list.
They have to discount 15-40 percent, depending on the price of a unit, in
order to get anywhere near the prices in the big chain stores in a nearby
metro area. The profit they make on new clarinets, saxes and other band
instruments would never pay their nut. What they exist on is band
instrument rentals and piano sales, and to a lesser extent in used
instrument sales -- but there the allowance for trade-ins in order to make
a deal shaves the profit close to the vanishing point.

Kevin, I've deleted several more pointed replies, because what you said
really got under my skin. Let me content myself for now with saying you're
completely wrong.

Lee Hickling <hickling@-----.net>

   
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