This might just be the end of brick and mortar


stores. Music direct just announced there 60 day return policy.
taters

Showing 3 responses by swampwalker

Isn't it possible that they are charging the same price that a dealer would sell the same product for in their B&M store, and just keeping the extra profit for themselves?
I don't think that there is any question that B&M stores have the potential to add value. If the internet direct price is the same as it was w a B&M dealer, why would a manufacturer go internet direct? There would be no motivation for the manufacturer to continue that arrangement. I would very surprised to find that manufacturers do not deal with an on-line dealer the same way they would w B&M stores, setting minimum selling prices.
Zd- my point is that I have to assume that the motivation to go to a direct or internet sales model is to be able to lower the price to be able to be more competitive. If you did that and then allowed the internet dealer to set the price at or close to what a more traditional sales model would require, then you'd be shooting yourself in the foot.
Zd- I think we are talking past each other. I was referring to distribution through internet sales instead of B&M, not both modes for the same lines, and thought that you were, too. I see that you were not. I would note, however, that in the case where internet sales reach a market where B&M is not available, then they would not compete w each other. So IF that were true, then MD's 60 day policy would not be the death of B&M. I know that's a big IF, but we are talking hypothetical.