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Call me Mr 10%

Pommy bastard 21 July 2009 37

Ok, yesterday I was spending the residue of our holiday money. We badly needed a DVD / Hard drive recorder for TV programs etc, so I had the remit to go out and get a deal.

Having chosen the model I fancied, I went to play all the outlets down at Fyshwick off against each other.

All had the model advertised at prices from $998 to $991.

Best deal I was offered was at Harvey’s at $994 with $75 back in vouchers for the store, so I did the rounds again.

Two places said they could match that, with cash back, rather than vouchers, not too shabby. This brought the price down to $926, sweet.

Luckily I went to the last store (Christopher someone?) at DFS.

The young lad serving me looked at my hard evidence, went to his computer, and said “$900 flat, if you pay cash or credit card.”

I had to ask him to repeat himself, before I gave him my credit card and frogmarched him to the till.

Ok, so if they are prepared to take a $96 hit on a $996 item, (10% of the asking price) how much are they making on it? How much do they pay themselves?

I felt sorry for all the crumblies who were there paying full asking price for stuff, not knowing that, if they played it a bit hard they could save a great whack…


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37 Responses to Call me Mr 10%
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Pommy bastard Pommy bastard 6:30 am 22 Jul 09

Art said :

Oh, Pommy, don’t be so smug.
Asked my mate about those recorders. You saved 10% but they usually make over 35% on them.

Again, in my own defense, I must point out I was not trying to appear ‘”smug”, I was just quite surprised at the discount I was offered.

I thought it may be a symptom of the harsh economic times, and a desire for more, or any, sales.

Mike Bessenger Mike Bessenger 10:37 pm 21 Jul 09

Thats what I mean in other industries mark up is much much greater.

Art Art 10:31 pm 21 Jul 09

Mike Bessenger said :

Just because you know the cost price, does not mean you will get anywhere near it. Lets not forget we are talking about business. And 35% is F all mark up.

What do you base that on. Many Canberra electrical retailers have a margin target of only 10% and have averages well below 20%.
If a sale goes out at above 25%, it’s considered a miracle in the market these days.

Furniture though is different, average mark ups well over 40%.

Holden Caulfield Holden Caulfield 9:57 pm 21 Jul 09

ant said :

Bosch and Miele seem to lead the reviews and tests in washing machines, too, especially for front loaders. Maytag is also becoming popular here (every american has a giant Maytag). Avoid LG.

We used to have an Asko front loader that crapped itself at a bad time for us financially, so our best way to buy a replacement was with a DJs card. Our budget could only extend to an LG option. It’s already lasted longer than the Asko machine and is generally very good. It does have a tendency to go walkies in our old skool laundry, though.

As a general rule, however, yes we would have preferred Bosch or Miele etc if we had the budget at the time.

Mike Bessenger Mike Bessenger 9:54 pm 21 Jul 09

Just because you know the cost price, does not mean you will get anywhere near it. Lets not forget we are talking about business. And 35% is F all mark up.

Art Art 9:48 pm 21 Jul 09

Oh, Pommy, don’t be so smug.
Asked my mate about those recorders. You saved 10% but they usually make over 35% on them.

Little trick I use, ring the company and pretend to be a shop. Find out the buy price. They have never asked for any sort of confirmation of ID, just say your Dave or someone from Bing lee.

Art Art 9:43 pm 21 Jul 09

Here’s the inside goss from a friend of mine:

Notebook computers: Typically only 6-12% margin at full price. The real money is in warranties which sell for $199 yet only cost $40.
Flat panel TVs: Better margin than notebooks, around 15-25% typically. Also heaps in warranty.
Cables: Those fancy looking cables that cost hundreds have an AVERAGE mark-up of over 300%.
Antivirus software: Ever coughed up for security software. ooops, you payed how much? $89? $129? Guess how much that $129 security software costs… around $17-$30.

gertel gertel 9:22 pm 21 Jul 09

Yeah I’d love to know what the profit margins are and how much of a good deal you can get. I’ve also just bought a PVR – the beyonwiz dp-p2 – which has dual hd tuners, hdd and records foxtel. $896 was the asking price at JBs and I got it for $775 plus $79 for an extra 2 yrs warranty. It’s hard to bargain for a product which keeps selling out as soon as new stock is delivered!!

I also love Peters!!

Danman Danman 8:29 pm 21 Jul 09

Peters of Kensington… My favourite kitchen store – got all my tefal and a pressure cooker from there….Quite easy to spend 1K there…very easy 🙂

Mike Bessenger Mike Bessenger 8:11 pm 21 Jul 09

Like they say ‘money talks, bullshit walks’ & ‘cash is king’

At my work all regulars get a 10%$ discount minimum. someone buying a big ticket item and paying cash can expect to save 10-20%

Woody Mann-Caruso Woody Mann-Caruso 6:23 pm 21 Jul 09

“Can you do 10% off for cash?” is our standard “just give me the item so I can go home” line. I hesitate to call it bargaining. It just seems to be accepted practice, like “would you like fries with that?” or “would you like a bag?”

Can you still work out the floor price of an item at Harvey Norman from the code on the price sticker? Haven’t been there for a while. Made for some interesting conversations:

“Can you do 10% off for cash?”
“Nah, mate, we only make like, $5 on this.”
“Really? Coz this code says you’ve got a $400 mark up on it.”
“Oh. Yeah, OK, 10%.”
“No, now I’m thinking more like 15%, and a box of CD-Rs.”

PsydFX PsydFX 5:22 pm 21 Jul 09

mooo_cow said :

http://www.camerastore.com.au/Panasonic+DVD+Recorder+with+250gb+HDD+DMR%252DXW350_details.htm

It would have cost him an extra $3 to purchase from there!

Nosey Nosey 5:07 pm 21 Jul 09

Thanks Jim.

I also used to mistake the two constantly.

But, I used the have the cleanest clothes, the only problem was all my dishes would brake.

LOL

Reprobate Reprobate 5:05 pm 21 Jul 09

peterh said :

ok. there was a way to see what is the lowest price for hn – the electrical tickets used to have 3 numbers in the top corner, one was invoice – and was the invoice number, not important. line 2 was IC – really important number. it is what HN buy it at. you won’t get the item at this price. but it is nice to know what they paid for it. there is another number – FC – this is the floor cost, the absolute lowest they will go to sell the product. or so they say. We always took the IC & the FC into consideration when buying from HN, and never paid retail.

for a lot of retail products, computers and other IT, there is bugger all margin in it for anyone. 10% off ticket price is rare, and if you can get it, well done you. Most items heavily discounted are end of life, as the store cannot afford for the albatross to sit on the shelf, gathering dust, so they mark it down to sell it quick.

Anyone know how to break the code at the Good Guys? When I ask for their best price they look at the small numbers on the tag, whip out a calculator and give the price. I assume their invoice cost is there somewhere and then they add whatever percentage it is to make their profit.

pepmeup pepmeup 4:32 pm 21 Jul 09

Its strange that we can negotiate the amount we pay for good off business men/women but the same business men/women cant negiotiate the best deal on paying people like us. given the prices they recieve will effect their income it is just another way that businesses are looked at always as the bad guys (read coffe or death for example) we always look for the nest way to get the best for ourselves.

ant ant 4:30 pm 21 Jul 09

Bosch and Miele seem to lead the reviews and tests in washing machines, too, especially for front loaders. Maytag is also becoming popular here (every american has a giant Maytag). Avoid LG.

If you are on Whirlpool and have access to the Gadgets forum, there’s a LOT of threads talking about washing machines.

Jim Jones Jim Jones 4:01 pm 21 Jul 09

Sorry Nosey, it was a dishwasher, not a washing machine. My bad (I have a mystifiying tendency to confuse the two, probably an additional symptom of domestic blindness). I can give you up-to-date advice about the best brands of dishwashers based on the Choice info (Bosch and Miele leading the pack by a huge margin), but my knowledge of washing machines is about 10 years old (used to live with a bloke that fixed washing machines).

There’s a Choice article on buying washing machines here: http://www.choice.com.au/viewArticle.aspx?id=102342&catId=100168&tid=100008

Also … when did my life get so boring?

Nosey Nosey 3:50 pm 21 Jul 09

Jim Jones..

I am in the market for a new washing machine as mine stopped mid cycle.

Any recommendations based on the Choice information?

Looking at a top loader but will consider front loader.

Well done Pommy Bastard. 1.5 hours for a saving of $96 is well worth the effort in my opinion.

VYBerlinaV8_the_one_they_all_copy VYBerlinaV8_the_one_they_all_copy 3:26 pm 21 Jul 09

Just goes to show what bargaining will do. I tend to take a different approach, which is to front up and say “I want X kind of thing, what can you show me that you can do a great deal on right now”.

It’s a bit hit and miss, but you’d be surprised how often you get something that does what you want for a discount. I also buy cars this way, and got almost 20% of RRP when I bought my Berlina. We took this approach for a new washing machine last year, and ended up getting a model slightly smaller than we had thought we wanted, but paid HALF what we thought we would need to. And it turns out the size is fine for us.

screaming banshee screaming banshee 2:44 pm 21 Jul 09

If you can’t get 10% or more off then you’re being ripped off.

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