Link This |
Email this |
Blog This |
Comments (0)
A Higher Suggested Retail For The Same Product As The Big Guy?
August 1, 2007
Many companies offer "different" or "better" models of the same product for specialty stores. (In this blog I am specifically referring to car seats & strollers, though it applies to many products.) We can sell these "improved" products for a higher retail price to balance our lack of buying power. Has anyone else noticed, though, that the differences are becoming fewer and smaller? The specialty store versions carry a suggested retail that is sometimes as much as 15% higher on products that are very, very similar. What are these manufacturers trying to do? I realize that they want to keep mass merchants happy but is there really no love left for the specialty store? Do they not wish to keep our business, too? How are my employees to justify such a dramatic price difference in a product that is essentially the same?
I had two customers in one day leave empty handed because the stroller they wanted was $25 less at Babies R Us in a slightly different fabric. (And wouldn't you know that they got the demonstration before mentioning the price problem.) The customers would have been completely daft to pay $25 more for the same exact item with only a ridiculously minimal aesthetic difference. At the same time, it does not do me any good to sell a $175 stroller for $150... especially when we are adhering to suggested retail pricing at minimal margins! If we do it for one, we have to do it for them all... they talk, you know. I am aware that specialty stores often have minimally higher pricing on products, but I'm not out to gouge my customers.
At what point do we, the retailer say "enough is enough!"? Is this grounds for dropping this manufacturer? If so, many of our metals manufacturers are going to have to be dropped, as well. Is this grounds for dismissing metal goods all together? Manufacturers, do you have a retort to the accusation that your products are far too similar to have such dramatic suggested retail price differences? I realize that it's not all manufacturers but it's far too many not to generalize. Please, I would love everyone's input on this one!
P.S. Make sure you register with Kids Today Online and login before you comment as I've had people tell me they've commented but it has not posted. Thanks!
Posted by Kelly Nelson on August 1, 2007 | Comments (0)
