4 ms·

> it's harder to maintain that brand image from a pricing standpoint if everyone can just sell it at whatever they want Does this apply to discounters only? Th

> it's harder to maintain that brand image from a pricing standpoint if everyone can just sell it at whatever they want Does this apply to discounters only? The PS5 (and earlier, PS4) resellers are re-selling them at premium, but AFAIK Sony doesn't go after them, at all. > (b) supplying so much product to the discounter meant less was available around the country for retail shops ...don't supply to the discounter so much then? Don't the manufacturers usually supply the retail chains first and only then dump whatever left to the discounters anyhow?

MisterBastahrd 6y ago
which resellers? I would have to imagine that anyone buying directly from Sony and marking up their products would catch the ire of the company, but maybe not. MAP and MRP are more about the downward pressure on prices, not upward, so that companies can't come back later and say "I can't sell your product and make a profit because I'm selling it for too cheap." The discounter largely doesn't care as much because of the sheer volume they were doing. They were selling at near half the price of what brick and mortar shops were selling AND this was during a time where most states were not charging taxes on internet purchases OR on tobacco sales. Say you have a box of cigars that has an MSRP for $100 a box. Break even price is $50. Discounter sells for $60 and offers free shipping. You go to the local store and buy for $100. Then you get hit with a 30% tobacco tax and a 9% sales tax. So now you're comparing $60 vs $139. Even if they didn't have what you want in stock, they probably would have something else you'd like for a fraction of the cost. Most mom and pop cigar stores carry about $50-200K worth of inventory at any one time. This discounter was doing mail order business and had about $80-100M worth of inventory.

4 ms·

> it's harder to maintain that brand image from a pricing standpoint if everyone can just sell it at whatever they want Does this apply to discounters only? Th

by Joker_vD 6y ago

MisterBastahrd 6y ago
which resellers? I would have to imagine that anyone buying directly from Sony and marking up their products would catch the ire of the company, but maybe not. MAP and MRP are more about the downward pressure on prices, not upward, so that companies can't come back later and say "I can't sell your product and make a profit because I'm selling it for too cheap." The discounter largely doesn't care as much because of the sheer volume they were doing. They were selling at near half the price of what brick and mortar shops were selling AND this was during a time where most states were not charging taxes on internet purchases OR on tobacco sales. Say you have a box of cigars that has an MSRP for $100 a box. Break even price is $50. Discounter sells for $60 and offers free shipping. You go to the local store and buy for $100. Then you get hit with a 30% tobacco tax and a 9% sales tax. So now you're comparing $60 vs $139. Even if they didn't have what you want in stock, they probably would have something else you'd like for a fraction of the cost. Most mom and pop cigar stores carry about $50-200K worth of inventory at any one time. This discounter was doing mail order business and had about $80-100M worth of inventory.