Fender Eliminates MSRP
- Thread starter Evan Skopp
- Start date
Christopher Caruana
New member
Re: Fender Eliminates MSRP
hmmm interesting
hmmm interesting
Agileguy_101
Master of his Domain
ItsaBass
New member
Re: Fender Eliminates MSRP
Normally, retail price is 30% off list price, and invoice price is about 50% of list price (rough estimates, of course).
Knowing that, haggling becomes a bit easier, especially in a blow-out and/or trade-in situation.
It isn't a big deal, just an observation.
Normally, retail price is 30% off list price, and invoice price is about 50% of list price (rough estimates, of course).
Knowing that, haggling becomes a bit easier, especially in a blow-out and/or trade-in situation.
It isn't a big deal, just an observation.
Agileguy_101
Master of his Domain
Re: Fender Eliminates MSRP
If you really want something, you'll pay the sticker price.
If you really want something, you'll pay the sticker price.
L
Little Pigbacon
Guest
Re: Fender Eliminates MSRP
^ Most of the major retailers all selling everything at the same price doesn't clue you in? Sounds like they're still going to use MAP.
^ Most of the major retailers all selling everything at the same price doesn't clue you in? Sounds like they're still going to use MAP.
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stringbender11
New member
Re: Fender Eliminates MSRP
Yeah I agree, glad to see MSRP go away. I never did understand what it was supposed to do. Did customer's at some point really think they were getting a discount when comparing the total BS manufacturer's 'suggested' price to the store's actual price?
Yeah I agree, glad to see MSRP go away. I never did understand what it was supposed to do. Did customer's at some point really think they were getting a discount when comparing the total BS manufacturer's 'suggested' price to the store's actual price?
Andrew Lamprecht
Minion of One
Re: Fender Eliminates MSRP
There is a local shop that I won't shop at. I feel bad because the people there are really nice but they actually mark their products at MSRP. I remember walking in there just to buy an SD-1 a couple years ago and they had it at $100.
There is a local shop that I won't shop at. I feel bad because the people there are really nice but they actually mark their products at MSRP. I remember walking in there just to buy an SD-1 a couple years ago and they had it at $100.
jimijames
New member
Re: Fender Eliminates MSRP
IDK about the publicized MSRP, but I do seem to remember hearing somewhere (specifically an article referencing colgate toothpaste...) that a manufacturer can't control the behavior of retailers when it comes to pricing strategy... Rather, what most manufacturers do who want retailers to sell an item at a specific price do is announce a suggested retail price, and then just choose not to sell it to retailers who undercut that price. It's called 'announce and terminate' and there's no problem with strategies like that. But once the manufacturer starts to intervene more with the retailers and gets all up in their bidness, that's when problems start to happen.
In a different context (mergers), there are some significant antitrust concerns about the time warner/comcast merger, which absolutely shouldn't happen but will... but what do I know...
It's really easy to look at price as just one thing - heck, it's what you pay - but because of how we cope with price as an aspect of a product, there is a real effect on our perceptions of quality. I mean, didn't somebody repaint Joyo pedals and resell them for mondo casho a while back? As guitarists we frequently listen with our wallets rather than with our ears. If fender wants to increase the price on it's guitars, it's just made it easier to do that in a way that's transparent to the public... Just blame the price increase on dealer margins and cost of business etc etc.
But usually any announcement about pricing policy just means that their legal department found a more positive way to spin "price increase." IMO of course.
IDK about the publicized MSRP, but I do seem to remember hearing somewhere (specifically an article referencing colgate toothpaste...) that a manufacturer can't control the behavior of retailers when it comes to pricing strategy... Rather, what most manufacturers do who want retailers to sell an item at a specific price do is announce a suggested retail price, and then just choose not to sell it to retailers who undercut that price. It's called 'announce and terminate' and there's no problem with strategies like that. But once the manufacturer starts to intervene more with the retailers and gets all up in their bidness, that's when problems start to happen.
In a different context (mergers), there are some significant antitrust concerns about the time warner/comcast merger, which absolutely shouldn't happen but will... but what do I know...
It's really easy to look at price as just one thing - heck, it's what you pay - but because of how we cope with price as an aspect of a product, there is a real effect on our perceptions of quality. I mean, didn't somebody repaint Joyo pedals and resell them for mondo casho a while back? As guitarists we frequently listen with our wallets rather than with our ears. If fender wants to increase the price on it's guitars, it's just made it easier to do that in a way that's transparent to the public... Just blame the price increase on dealer margins and cost of business etc etc.
But usually any announcement about pricing policy just means that their legal department found a more positive way to spin "price increase." IMO of course.
beaubrummels
Well-known member
Re: Fender Eliminates MSRP
Ok, so now invoice is 20% off of retail.
The big thing that I can see it does is now Big Name Center can't say "Wow 25% off!!" anymore.
Ok, so now invoice is 20% off of retail.
The big thing that I can see it does is now Big Name Center can't say "Wow 25% off!!" anymore.
DreX
New member
Re: Fender Eliminates MSRP
Thanks to sites like Google Shopping and ebay, it's very easy to search for a product and see that multiple vendors are selling any given thing for a certain amount. For example, it's pretty clear that if you want the new Duncan 805 Overdrive it will cost you $140 http://www.ebay.com/sch/i.html?_fro...C2.A0.H0.Xduncan+805&_nkw=duncan+805&_sacat=0 (or $999, LOL) so, the retailers can't really say anything about their price points that worth listening to. In the age of effortless data aggregation, all that matters is the number. Sweetwater puts candy in with their orders. That's pretty much the only meaningful difference between one retailer and another much of the time.
Thanks to sites like Google Shopping and ebay, it's very easy to search for a product and see that multiple vendors are selling any given thing for a certain amount. For example, it's pretty clear that if you want the new Duncan 805 Overdrive it will cost you $140 http://www.ebay.com/sch/i.html?_fro...C2.A0.H0.Xduncan+805&_nkw=duncan+805&_sacat=0 (or $999, LOL) so, the retailers can't really say anything about their price points that worth listening to. In the age of effortless data aggregation, all that matters is the number. Sweetwater puts candy in with their orders. That's pretty much the only meaningful difference between one retailer and another much of the time.
ItsaBass
New member
Re: Fender Eliminates MSRP
The math doesn't work like that! With no list price, there is no 100%, therefore there is no more 70% and no more 50%. You can't have percentages of something when that something doesn't exist. 20% of list can't just be slid around as if it means the same thing it did before.
Assume for a minute that invoice prices and standard retail prices stay the same (though they won't; if they would, the change would not be being made). The 70% becomes the new 100%. Therefore the 50%, when multiplied by the same factor that takes 70% to 100% (1-3/7x), becomes about 71%. So, assuming that there are no price changes of any kind, we can roughly estimate that invoice is 30% under retail.
However, in practice, without list price to which to compare retail price – the only solid, inflexible number in the equation, the reference number – is removed. The standardization of price throughout the industry is chucked out the window. One can no longer estimate invoice price as accurately. And being able to estimate what a dealer paid for something can often be very important when haggling.
Anyhow, it isn't gonna be a huge issue, but it will not end up benefiting the buyer any.
The math doesn't work like that! With no list price, there is no 100%, therefore there is no more 70% and no more 50%. You can't have percentages of something when that something doesn't exist. 20% of list can't just be slid around as if it means the same thing it did before.
Assume for a minute that invoice prices and standard retail prices stay the same (though they won't; if they would, the change would not be being made). The 70% becomes the new 100%. Therefore the 50%, when multiplied by the same factor that takes 70% to 100% (1-3/7x), becomes about 71%. So, assuming that there are no price changes of any kind, we can roughly estimate that invoice is 30% under retail.
However, in practice, without list price to which to compare retail price – the only solid, inflexible number in the equation, the reference number – is removed. The standardization of price throughout the industry is chucked out the window. One can no longer estimate invoice price as accurately. And being able to estimate what a dealer paid for something can often be very important when haggling.
Anyhow, it isn't gonna be a huge issue, but it will not end up benefiting the buyer any.
