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[RC] Manufacturer Direct (was: Easycare) - k s swigart

LP said:

Obviously, these retailers offering discounts - are still
marking these products up enough over wholesale -
to make enough profit to make it worth their while.
Makes me wonder what the markup is that the 'manufacturer
direct' retailer is getting? Since it's obviously a fairly high
markup - since other large retailers/catologues are still
10-20% cheaper than the 'manufacturer direct'.

The reason that manufacturers sell their products "direct" at the same
price that even their smallest retailers do is to encourage retailers to
carry their product.  It would be totally "uncool" for manufacturers to
sell direct to consumers at wholesale prices thereby undercutting all
the people who are marketing their product for them.

Additionally, it IS more expensive to sell things one at a time than in
bulk.  If manufacturers want to sell their product direct to consumer
this is much more trouble (and requires additional staff...thereby
expense) than selling in quantity to other companies who then sell it
on.

kat
Orange County, Calif.

p.s.  Didn't forget it this time.  There is no intended joke in there.




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