Local Tuner Mad Over Forum Prices & Calls Supplier
11-24-2012, 09:27 AM
#61
Team Owner
This counry was built on great people providing goods and services locally. Towns developed along main streets everywhere, and spread out from there. In todays' market, we have two choices, we can continue to support brick and mortar arrangements, where local people (many of them friends and neighbors) run a nice family business, pay fairly decent wages and in many cases buy the shirts for kids little league teams, advetise in the local newspapers, and so forth, OR we can continue to shop online for every purchase. Shopping online, over time, erodes the very fabric of your local society. Did you save a few bucks? sure. Now that you saved a few bucks, your neighbor's business isnt doing so well. Over time, this erodes the very way of life we live. Look at example after example of what happens when big box stores come to town.
As mentioned already, here in pa, and many other states, internet purchases dont carry sales tax in many cases. Great right? ok, so buy everything online, now you will think for just a minute that you are beating the system. Until next year, when the government has a deficit from not collecting the sales taxes. How does it get paid? simple, raise in local taxes. The out of town guys run away with the tax free income, and you feel great for a minute, then it hits you, you gotta pay anyway. Then look at income/taxes for workers. "They" use low wage, warehouse labor to pick aproduct off the shelf, sell it to you and pay less taxes. The local guys pay a higher wage, meaning higher income taxes, PLUS they spend money locally, keeping your community flourishing.
The local guys likely pay a higher overhead toward cost of goods sold. For my money, a few bucks more is just fine.
Now, on to the guy allegedly selling at inflated prices. He very well may be. Did you discuss it with him? did you ask him to try to come close to other pricing? For my money, it would go something like this....Hey jackass(since I know him), I have been buying here for x years. So and so is advertising at x price. I know you are a local business with higher overhead, but can you help a brother out? I really prefer to buy from you, as you are here, stand behind your products, and offer great service, but I dont want to pay all of your rent this month, just a portion. What can you do for me?
As far as him giving the manu crap, I just dont agree with it. In my business ,I am monty friggen hall. I know what my costs are, and what I NEED to make. I alos know what I WANT to make. Somewhere in between is a happy place for those who talk nice to me.
As mentioned already, here in pa, and many other states, internet purchases dont carry sales tax in many cases. Great right? ok, so buy everything online, now you will think for just a minute that you are beating the system. Until next year, when the government has a deficit from not collecting the sales taxes. How does it get paid? simple, raise in local taxes. The out of town guys run away with the tax free income, and you feel great for a minute, then it hits you, you gotta pay anyway. Then look at income/taxes for workers. "They" use low wage, warehouse labor to pick aproduct off the shelf, sell it to you and pay less taxes. The local guys pay a higher wage, meaning higher income taxes, PLUS they spend money locally, keeping your community flourishing.
The local guys likely pay a higher overhead toward cost of goods sold. For my money, a few bucks more is just fine.
Now, on to the guy allegedly selling at inflated prices. He very well may be. Did you discuss it with him? did you ask him to try to come close to other pricing? For my money, it would go something like this....Hey jackass(since I know him), I have been buying here for x years. So and so is advertising at x price. I know you are a local business with higher overhead, but can you help a brother out? I really prefer to buy from you, as you are here, stand behind your products, and offer great service, but I dont want to pay all of your rent this month, just a portion. What can you do for me?
As far as him giving the manu crap, I just dont agree with it. In my business ,I am monty friggen hall. I know what my costs are, and what I NEED to make. I alos know what I WANT to make. Somewhere in between is a happy place for those who talk nice to me.
11-24-2012, 09:53 AM
#62
Melting Slicks
I just want to speak from both sides here because I own a brick/mortar and a second online only store myself. I compete with myself on a daily basis and customers never know. My brick and mortar business sells 10x more product each month than my online website does at an average of a 30% higher price. We have overhead! But so do many sucessful online only retailers. I spend 10k a month advertising 4k in rent 2k in utilities and bills. And 8-15k a month or more in salaries and commissions...
Brick and mortar sells 70k (average) to 150k(busiest seasons) a month with 20-25k a month in overhead. So the 10-15k a month left over is my salary / capital for opening new locations and such.
Now on the flip side my website (totally separate company but same products) is cheaper by 30-40% and I only pay $125 a month for hosting and $2k on advertising and it produces only 15-25k a month gross but that only equates to 4-5k a month in profit... If That was my sole income, I'd never be able to grow my business..
I don't feel bad AT ALL for being more expensive than everyone else because I'm not stealing or ripping anybody off! I offer services in person that a website cannot give you.
I have employees with families and bills of their own and i have my bills to keep paid. Right now I'm only 25 years old and I bring n 150-200k a yr. Do I feel bad about being successful? Hell no! My customers are ecstatic with their purchases and they tell all of their friends how great the experience was! Please tell me I'm a con artist, or that my higher price is putting me out of business, I'll put you on the phone with a customer who will argue the fact!
This shop owner sounds like he's simply doubling his prices while everyone else is working with a 40% standard mark up. If he doesn't have any way to back it up service or incentive wise that's his Delima but ultimately it's his business. Charging more does not make him greedy or disreputable, he may even have to pay more than the online guys do. There's absolutely no reason to shoot him down and honestly I've been in his situation myself and I'VE had a few accounts closed ...
It's called business... Its cut throat. You can Be better than your competition and make more money or you be cheaper and work harder for less money... It's your choice
Brick and mortar sells 70k (average) to 150k(busiest seasons) a month with 20-25k a month in overhead. So the 10-15k a month left over is my salary / capital for opening new locations and such.
Now on the flip side my website (totally separate company but same products) is cheaper by 30-40% and I only pay $125 a month for hosting and $2k on advertising and it produces only 15-25k a month gross but that only equates to 4-5k a month in profit... If That was my sole income, I'd never be able to grow my business..
I don't feel bad AT ALL for being more expensive than everyone else because I'm not stealing or ripping anybody off! I offer services in person that a website cannot give you.
I have employees with families and bills of their own and i have my bills to keep paid. Right now I'm only 25 years old and I bring n 150-200k a yr. Do I feel bad about being successful? Hell no! My customers are ecstatic with their purchases and they tell all of their friends how great the experience was! Please tell me I'm a con artist, or that my higher price is putting me out of business, I'll put you on the phone with a customer who will argue the fact!
This shop owner sounds like he's simply doubling his prices while everyone else is working with a 40% standard mark up. If he doesn't have any way to back it up service or incentive wise that's his Delima but ultimately it's his business. Charging more does not make him greedy or disreputable, he may even have to pay more than the online guys do. There's absolutely no reason to shoot him down and honestly I've been in his situation myself and I'VE had a few accounts closed ...
It's called business... Its cut throat. You can Be better than your competition and make more money or you be cheaper and work harder for less money... It's your choice
11-24-2012, 10:16 AM
#63
Go Canes!
I have stayed out of this, but I am curious as to which local shop called. Are they forum vendors also?
11-24-2012, 10:20 AM
#64
Racer
Member Since: Nov 2011
Posts: 438
Likes: 0
Received 0 Likes
on
0 Posts
Exactly
But I truly hope not because I want one
OP plz don't throw anyone under the bus just leave that alone...
Last edited by Vel-Yellowc6; 11-24-2012 at 10:22 AM.
11-24-2012, 11:04 AM
#65
Melting Slicks
Apsis seems to be doing very well with his on line Black Friday. Id say he has generated thousands of dollars already just for that one sale alone. And that is in this forum alone, Im sure he is in the other vette forums and camaros, etc.... This is why I like forums, you can get good info, after digging thru the info and you can get good prices too.
11-24-2012, 11:05 AM
#66
I have owned a small business for 37 years and my business philosophy is to sell for the highest price I can and not go out of business. This is the opposite of Wall mart. Some manufactures that want to put their product in my store offer MAP pricing, minimum advertised price. If another store was selling/advertising for less I would contact the manufacture to discuss this. If you are not happy with my price I understand, don't go away mad, just go away and I'll get on with it.
OP, what line of work are you in, maybe that would help me understand your problem?
OP, what line of work are you in, maybe that would help me understand your problem?
Last edited by capehorn3; 11-24-2012 at 11:36 AM. Reason: spelling
11-24-2012, 11:08 AM
#67
Melting Slicks
I have owned a small business for 37 years and my business philosophy is to sell for the highest price I can and not go out of business. This is the opposite of Wall mart. Some manufactures that want to put their product in my store offer MAP pricing, minimum advertised price. If another store was selling/advertising for less I would contact the manufacture to discuss this. If you are not happy with my price I understand, don't go away mad, just go away and I'll get on with it.
OP, what line of work are you in, maybe that would help me understand you problem?
OP, what line of work are you in, maybe that would help me understand you problem?
11-24-2012, 11:41 AM
#68
Good Gals Drive It Hard
Thread Starter
Once again... it is NOT the inflated price that was the issue and I didn't buy the shop grossly inflated price. (I do have a problem with anyone grossly inflating prices)
THE ISSUE: THE SHOP OWNER HAD THE NERVE TO CALL THE MAIN AND ONLY SUPPLIER AND COMPLAIN THAT OTHER RETAILERS (ONLINE AND SHOPS) SELL FOR LESS THAN HE DOES AND THAT IT HURTS HIS PROFITS.
It is clear that some of you who own or have owned small businesses are biased and scorned. Hey, it is hard to make a buck in this world. Thing is, if you are or were in business, it is this shop owner in question who would be making things more difficult for YOU (another retailer) let alone more expensive for the customer, all so HE can profit even more than he already does. On the other hand, if you were in the same business as this shop owner and you offerred the same parts for a more reasonable price, customers would likely buy from you, thus that shop owner just became your salesman (as in my case).
--I'm not going to get into what I do (occupation), not relevant (I am post-graduate educated and a licensed professional). What is relevant, in this day and age, the consumer has many options to buy products and should shop wisely. If priced right and/or conveinently in stock at the local store, sounds good to me and will earn my business. If however, not priced right or in stock, there are other options for the consumer. For the shop owner to raise a stink to the manufacturer about loosing a sale on grossly marked up parts to another retailer who was selling at a fair market price because this consumer was able to shop around... just cost that shop owner a loss of future business. How's that for HIS profit?
Side Note: Black Friday is being challenged if not already surpassed by Cyber Monday! Go Amazon! (bet that will get some of your panties all knotted up) LOL
THE ISSUE: THE SHOP OWNER HAD THE NERVE TO CALL THE MAIN AND ONLY SUPPLIER AND COMPLAIN THAT OTHER RETAILERS (ONLINE AND SHOPS) SELL FOR LESS THAN HE DOES AND THAT IT HURTS HIS PROFITS.
It is clear that some of you who own or have owned small businesses are biased and scorned. Hey, it is hard to make a buck in this world. Thing is, if you are or were in business, it is this shop owner in question who would be making things more difficult for YOU (another retailer) let alone more expensive for the customer, all so HE can profit even more than he already does. On the other hand, if you were in the same business as this shop owner and you offerred the same parts for a more reasonable price, customers would likely buy from you, thus that shop owner just became your salesman (as in my case).
--I'm not going to get into what I do (occupation), not relevant (I am post-graduate educated and a licensed professional). What is relevant, in this day and age, the consumer has many options to buy products and should shop wisely. If priced right and/or conveinently in stock at the local store, sounds good to me and will earn my business. If however, not priced right or in stock, there are other options for the consumer. For the shop owner to raise a stink to the manufacturer about loosing a sale on grossly marked up parts to another retailer who was selling at a fair market price because this consumer was able to shop around... just cost that shop owner a loss of future business. How's that for HIS profit?
Side Note: Black Friday is being challenged if not already surpassed by Cyber Monday! Go Amazon! (bet that will get some of your panties all knotted up) LOL
Last edited by DropTopGal; 11-24-2012 at 11:51 AM.
11-24-2012, 11:59 AM
#69
The free market exists at the corner of those who want to sell at the highest price they can and those who want to buy at the lowest price they can. Period.
Local owners of any business have to provide a value-add that makes me bother to spend a DIME at their establishment. If you can't do that...buh-bye!
The fact that this owner called a supplier to complain is not a problem to me. That is his business and his prerogative to do so. If he is successful, fine. The buyer can always react to that by going another direction.
Local owners of any business have to provide a value-add that makes me bother to spend a DIME at their establishment. If you can't do that...buh-bye!
The fact that this owner called a supplier to complain is not a problem to me. That is his business and his prerogative to do so. If he is successful, fine. The buyer can always react to that by going another direction.
11-24-2012, 12:45 PM
#70
Pro
Member Since: Mar 2012
Location: Buena Park CA
Posts: 606
Likes: 0
Received 0 Likes
on
0 Posts
I doubt if the shop calling the manufacturer about someone discounting their products price is going to change anything. The manufacturer wants to sell their product and the on-line company probably sells more of their product than the shop.
The manufacturer may have a minimum price that they want the retailer to charge, but that is usually to prevent a retailer from advertising the product at a lower price and and making the brand look cheap. The manufacturer may contact the on-line company and have them change their pricing if there are many complaints. However, the on-line company will then just charge the regular price for the product and give the customer a gift card. Nothing will change!
The end result is that each business has their own business plan and will charge what they want for their product and nothing is really going to change that.
The manufacturer may have a minimum price that they want the retailer to charge, but that is usually to prevent a retailer from advertising the product at a lower price and and making the brand look cheap. The manufacturer may contact the on-line company and have them change their pricing if there are many complaints. However, the on-line company will then just charge the regular price for the product and give the customer a gift card. Nothing will change!
The end result is that each business has their own business plan and will charge what they want for their product and nothing is really going to change that.
Last edited by Tom45; 11-24-2012 at 02:42 PM.
11-24-2012, 03:18 PM
#71
Melting Slicks
As long as a supplier sells thier stuff to venders at X amount, what do they care if the vendors then sell it at a lower price or at a price set by the supplier? The supplier has made thier money. And if there can be a set price to sell at then they should set a max price too. And Im sure you can always use the "we are having a sale" to sell at a lower price.