Klarinet Archive - Posting 001581.txt from 1998/04

From: Lee Hickling <hickling@-----.Net>
Subj: Re: [klarinet] Retail vs warehouse
Date: Mon, 27 Apr 1998 21:37:37 -0400

>From: "Kevin Fay" <kevinfay@-----.com>
>To: klarinet@-----.us
>Subject: Retail v. Warehouse
>
>I do not believe that your friend is lying--I do know, however, that he
>is somewhat misinformed.
>While many manufacturers do offer special models for large retailers,
>thus being able to offer a lower price on them, branded items MUST have
>the same price to all competitors at the same level of distribution.

Go to any music store where you know the proprietor. Ask him to show you
the price lists from instrument manufacturers, and explain the volume
discounts that result in a two-tier wholesale price schedule. Then there is
a second discount for cash, usually 6 percent. The big guys have the cash
flow to pay cash. They can wind up paying more than 40 percent less than
the small independent music store operatore, enabling them to make a profit
with retail prices that are lower than the little guys pay at wholesale.

After my first reply in this thread, I looked at the price lists on student
grade band instruments last Saturday, and asked several questions to be
sure I had it right. The foregoing paragraph is supported by the
irrefutable numbers, right there in the cold print. Check it out for yourself.

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

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