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Call me Mr 10%

By 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…

What’s Your opinion?


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37 Responses to
Call me Mr 10%
Holden Caulfield 2:06 pm 21 Jul 09

mooo_cow said :

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

I reckon I’ve seen these for less at JB Hi-Fi in the city as well.

Lamest retail thread ever. 😛

Pommy, if I were you I’d be bragging about the cricket. Not this.

ant 1:55 pm 21 Jul 09

peterh said :

are you making reference to the FC=30+ SC25% markup rule? helps if you buy from a distie in very large bulk…. the discount is massive. and the rrp is the same, as the discounts that HN receive allow them to start at RRP and work their way back.

If you’ve ever been astonished at the prices Peters of Kensington can sell at, apparently what they do is buy container-loads of crystal and china etc from Royal Dalton et al, and pay cash. The discount they get for doing that enables their retail prices.

TAD 1:41 pm 21 Jul 09

Go on the last day of the month and you’ll find a bit more flexibilty as well.

RAGD 1:23 pm 21 Jul 09

LOL at mooo_cow!

peterh 1:11 pm 21 Jul 09

Thumper said :

I have a friend who works at Harvey Norman. You’d be astounded by the mark up on products.

Actually, no, that was the wrong word, try, ‘repulsed’.

are you making reference to the FC=30+ SC25% markup rule? helps if you buy from a distie in very large bulk…. the discount is massive. and the rrp is the same, as the discounts that HN receive allow them to start at RRP and work their way back.

Thumper 1:07 pm 21 Jul 09

I have a friend who works at Harvey Norman. You’d be astounded by the mark up on products.

Actually, no, that was the wrong word, try, ‘repulsed’.

peterh 1:04 pm 21 Jul 09

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.

Tooks 12:57 pm 21 Jul 09

Never pay ticket price for any item in any large retail store like Harvey Norman et al. In my experience they will always come down in price, even if you just say you saw it cheaper elsewhere.

ant 12:51 pm 21 Jul 09

Holding up actual cash can work wonders, too. Not always, but it’s worth a go if you have it. Years ago during an Ikea foray at Moore Park Supa Centa, I wandered in to Bing Lee to see if my Birthday Money would extend to a surround sound system for the TV/DVD.

A very motivated sales guy came up and began selling, but even the cheapest LG system in a box was about $150 more than I had. I got my money out to see if it was only $250 in there, or if I maybe had an extra 50 dollar note in there, but hope, all I had was $250.

“Oh, that’ll do” said the sales guy. Holy crap!

nicnacvb 11:49 am 21 Jul 09

I had a similar experience at DFO (I assume that’s what you mean)

Was out there shopping and went into an electrical outlet that I’d never heard of before (I think it’s the only one in Canberra).

I was looking for a blender at the time and the cheapest I had seen it for was about $155 online. Saw it in the shop for about $190. Asked if they could do any better and they said $164. Straight up, no price matching.

I know you’ll think I’m mad for spending that much on a blender (good cocktails are important) but that’s a saving of nearly 14% just for asking!!!

If you include postage for the online store I’m sure $164 is cheaper.

Ask and you shall receive.

Skidbladnir 11:32 am 21 Jul 09

Re: percentage markup, you can get away with whatever people will pay…
For the purposes of retail your minimum markup on purchased stock needs to cover all your costs of acquiring and selling goods, (including business costs like staff wages, premises, personal costs and return on investment), compared to what you can charge in the market place.
(IE: selling below cost in the long-term will put you out of business)

Maximum markup is whatever the market will bear, but if you’re making obscene profits its going to attract competitors who will do it cheaper.
So people try and aim for a sweet spot of still making a reasonable profit while not scaring away a large share of customers.

DFO stores in general look like a pretty barebones operations.

mooo_cow 11:30 am 21 Jul 09
Pommy bastard 11:25 am 21 Jul 09

Fair points Steve. However, it wasn’t half a day, more like 1 1/2 hours, and I bought one off the net the last time, and ended up sending it back and for to get “corrected.”

Jim; Panasonic DMR-XW 350

http://www.cnet.com.au/panasonic-dmr-xw350-339295676.htm

Jim Jones 11:22 am 21 Jul 09

Well done – I’d like to use that as the basis to buy the same thing, can you let me know the model number? I’m guessing you got one with dual digital tuners and all that jazz.

The missus subscribed to ‘Choice’ magazine; one of the services they offer is, if you contact them and tell them what you’re shopping for, they’ll do a ring-around and find the best price for the product. We had to buy a new washing machine when the old one died, and Choice not only organised the best quote, but had the supplier contact us and organise delivery/payment. Saved a bundle and didn’t have to spend too much time running around haggling (although the research was still time consuming).

eh_steve 11:12 am 21 Jul 09

I personally would value half a day of my time running around Fyshwick at more than $96, particularly when the right places will give a similar discount without all that hassle, and that is before you even consider using the internet to hunt down a (probably larger) bargain.

Still, well done.

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