I think it’s perfectly normal to shop around and definitely not embarrassing to discuss competitive prices with your local dealers.
It’s not your obligation to buy stuff, it’s the dealer’s job to sell you stuff.
Now let me be a bit tough on the B&M dealers. We’re not talking about cheap plastic no name toys from Ali express here. We’re talking about products that cost thousands and their MAP prices are fiercely protected by manufacturers to ensure every dealer makes a good profit. By good profit I mean 40% of the MAP price. Yes, on a $10k product your local dealer can make $4k. That’s kinda excessive if all the dealer did was talking to you for 10 minutes. So the dealer has to be prepared to either make a lot less on the item or have a lower chance of selling it.
Regarding internet retailers. When it comes to the brand names, online retailers are often at disadvantage because they can not advertise below MAP price and don’t have a face-to-face contact to negotiate a lower sale price. At the same time, they often have to pay sales tax just like B&M. Many brands refuse to open accounts to online retailers without physical locations. In order to make their deals attractive online retailers have to put a lot of effort in monitoring competition, analyzing which inventory to keep, where to acquire the inventory including used stuff, open boxes, etc., creating package deals, holiday sales, and much more. As a result of their hard work, instead of pocketing $4000 they make $400 from selling that same $10k item and yet manage to survive.
Now the question why can’t a B&M dealer survive by charging the same prices? Expensive rent? Not enough walk-ins? Bunch of inventory that doesn’t sell? Failure always has an explanation. All that has nothing to do with a type of business, that’s just a sign that the business is poorly managed.
Don’t get me wrong. Most of the time online retailers know little about the product, hardly can advise on anything or inspire a sale, but they are hard working people. On the contrary, I’ve seen B&M guys that know little about their products, don’t look inspiring and are just plain lazy. When lazy meets hard-working it’s destined to lose.
Someone mentioned Best Buy here. I noticed in the last few years they’ve reinvented themselves. They have a nice selection of cool innovative products, stuff you can’t see or touch anywhere else. Their prices match Amazon’s. I found myself enjoying the store again like 20 years ago. I have no problem buying from them and a peace of mind knowing that the price is right.
And final note on the brick and mortar. While many of them close, Amazon is looking to open brick and mortar locations. So is it a brick problem or a mortar problem? I think the problem is in the way old school B&M businesses are managed.
It’s not your obligation to buy stuff, it’s the dealer’s job to sell you stuff.
Now let me be a bit tough on the B&M dealers. We’re not talking about cheap plastic no name toys from Ali express here. We’re talking about products that cost thousands and their MAP prices are fiercely protected by manufacturers to ensure every dealer makes a good profit. By good profit I mean 40% of the MAP price. Yes, on a $10k product your local dealer can make $4k. That’s kinda excessive if all the dealer did was talking to you for 10 minutes. So the dealer has to be prepared to either make a lot less on the item or have a lower chance of selling it.
Regarding internet retailers. When it comes to the brand names, online retailers are often at disadvantage because they can not advertise below MAP price and don’t have a face-to-face contact to negotiate a lower sale price. At the same time, they often have to pay sales tax just like B&M. Many brands refuse to open accounts to online retailers without physical locations. In order to make their deals attractive online retailers have to put a lot of effort in monitoring competition, analyzing which inventory to keep, where to acquire the inventory including used stuff, open boxes, etc., creating package deals, holiday sales, and much more. As a result of their hard work, instead of pocketing $4000 they make $400 from selling that same $10k item and yet manage to survive.
Now the question why can’t a B&M dealer survive by charging the same prices? Expensive rent? Not enough walk-ins? Bunch of inventory that doesn’t sell? Failure always has an explanation. All that has nothing to do with a type of business, that’s just a sign that the business is poorly managed.
Don’t get me wrong. Most of the time online retailers know little about the product, hardly can advise on anything or inspire a sale, but they are hard working people. On the contrary, I’ve seen B&M guys that know little about their products, don’t look inspiring and are just plain lazy. When lazy meets hard-working it’s destined to lose.
Someone mentioned Best Buy here. I noticed in the last few years they’ve reinvented themselves. They have a nice selection of cool innovative products, stuff you can’t see or touch anywhere else. Their prices match Amazon’s. I found myself enjoying the store again like 20 years ago. I have no problem buying from them and a peace of mind knowing that the price is right.
And final note on the brick and mortar. While many of them close, Amazon is looking to open brick and mortar locations. So is it a brick problem or a mortar problem? I think the problem is in the way old school B&M businesses are managed.