Reply With Quote
Is there a problem with the first figure? So hope so if not it will be more than 300% increase in price leh...woah! []
Just went down to Petmart and Ben say the price will increase from January. Cuz my friend quote was 2222 now S$50 and in January 2222 is S$180. Comments[]
Is there a problem with the first figure? So hope so if not it will be more than 300% increase in price leh...woah! [
Plant Physiology by Taiz and Zeiger
huh? eheim 2222 costs $50 only ah?? sure?? hahaha if comfirm im gonna buy it ahaha..
use commonsense i think it's 150 to 180
2 issues at work here i think
1. distributorship issues
2. gst
we can all suck it
Jinxed fishy photographer
[Specialist]
$30 increase not 1% izn't it? It is more like 20%! Is it justified that retailers can suka suka increase whatever they like in the name of GST increase?
Also, is Yihu still the sole distributor of Eheim stuff?
ck
Sorry guys is S$150 not S$50! typo [:
Went to Petmart today and they confirmed the increase will take effect tommorrow. Don't know if that is true and does that apply to the accessories too? Well just have to wait and see
apparently yihu gave up distributorship----------------
On 12/28/2002 9:36:48 AM
Also, is Yihu still the sole distributor of Eheim stuff?
ck
----------------
the jury is still out on this
don't slam the retailers if you don't know the full story, is what i say
what I heard.
the distributor (qianhu or yihu) is still present.
petmart is selling below RRP pricing, distributor forced other shops to sell at RRP, petmart has not complied, other fish shops threaten to match petmart price, distributor issue ultimatum to petmart to comply or no more eheims for petmart.
so its not a price increase, its a sell at Recommended Retail Price
^^ this is hearsay ^^^
Actually this brings to point the need for us to be a bit more discreet about talking on pricing... after all, no point telling others about lobang if it causes the LFS in question to be unable to sell at such prices...
Allen
sigh.. []
Excuses Excuses Excuses... Sighhhhhh
Although it's supposed to be a free market, sometimes, it isn't so free.
My wife was asked to stop selling a certain brand of bread at a discount because a Govt linked company which is also a major retailer (and I really mean major) complained to the supplier. Suppliers have to keep their retailers happy or else they will stop selling their goods. But most of all, suppliers want to keep their biggest retailers happiest so when they (the major retailers) complain that competitors are under-cutting the market, suppliers will take action.
Money makes the world go round, my friends. That's not all - Size matters too.
Loh K L
Just a comment..
This type of price competition betw sellers and Distributors stepping in and force everyone to sell at RRP is not new in Singapore. We have a popular (or should it be termed notorious) example of Oakley in Singapore. If you recall, some years back we can have Oakley at dirt-cheap price (Alright, not that dirt-cheap but definitely much much cheaper than now..). Now all shops sell at the same fixed price and only sellers and distributors are the ones who are laughing all the way to the banks.
In the angling hobby arena of Singapore, we have the same issue but it seemed to work well for end-customer. How that works is that 'under-cutting' seller will not issue receipt/invoice for goods-sold. So there is no 'proof' of goods sold under RRP.
Of course it requires buyers to be discrete and avoiding disclosing price in public such as internet forum.
Does that infringed the law? I don't know and perhaps don't care, so long as I get my stuff at the price I'm comfortable with
Resistance is futile, you will be administrated!
Can someone explain the advantages for distributors to control prices? I don't see the logic behind it (but then I'm an IT guy... not a biz guy).
Vincent - AQ is for everyone, but not for 'u' and 'mi'.
Why use punctuation? See what a difference it makes:A woman, without her man, is nothing.
A woman: without her, man is nothing.
I would not dare claim to fully understand the laws of market pricing and economics but I can certainly hazard a guess on the RRP stance.
If the retailers were to sell below the RRP, thereby undercutting the other retailers, they might experience a surge in sales for that locale. However the reprecussion is that the other retailers might get an impression of under-demand and thus think that the product is a loss item. This would thus leads to them abandoning purchase of said product from distributor, making the distributor relying on a sole retailer. Since there can only be one (or few) locales selling such an item (which most likely is a luxury good), the overall demand and hence potential sales of the item is severely diminished.
On an argument that free market forces should be allowed to dictate the item (that is everyone allow to mark their own selling price and not be guided by RRP), there is the possibility that every retailer will undercut each other even under loss. This is very likely in this region (case in point: the AMK fruit sellers war). In the long run, this again is a detriment to the manufacturer/distributors, as all retailers would likely see the product as loss-making and abandoning it, or go bankrupt. The customer would then be at a loss here if the goods are technologically advanceable (i.e. they would not be able to see future incarnations).
Even in USA the so-called free-market economy, RRP exists. Many shops factor in state business taxes and transportation, distribution costs into their retail price (don't forget the markup profit) which makes it seem that the retail prices vary by a lot.
SUMMARY:
Retailer undercut RRP -> Less potential customer base -> Product no longer distributable -> Manufacturer no business & close down
Can someone explain the advantages for distributors to control prices? I don't see the logic behind it (but then I'm an IT guy... not a biz guy).
----------------
If it's all up to distributors, some of them won't give a damn if you sell their goods under market prices. As far as distributors are concerned, if you are willing to make a loss or a smaller profit on their goods, why should they worry? After all, they are going to supply you the goods at the same price as what they give to the other shops, so the more you sell, the more they make. But sometimes, something happens which forces them to stop you from selling their goods at the recommended prices.
A few years ago, a big supermarket store opened in Suntec City. They started selling a famous cooking oil at a loss. Every bottle they sold, they lost about 15 cents. But at the price they were selling, the cooking oil became a big attraction and housewives and bargain-hunters flock to their store. The supermarket didn't mind losing 15 cents on every bottle as they know that when people turn up to buy the cooking oil, they will buy other things too. In any case, they also have a rule that you can only buy a limited number of bottles, something like 3 bottles, if my memory is correct.
Another big chain store became unhappy. This big chain store prided itself on being the cheapest in town as far as staple items like cooking oil was concerned. So they complained to the oil distributor and demanded that they either stop the other supermarket from selling the oil at a loss or stop supplying them altogether. The oil distributor who was actually very happy when the first supermarket started selling their oil like hot cakes, had to stop supplying the oil to them as the second store was a big chain. If they don't do what they ask, the big chain store will stop selling their oil. They can ignore the small fry but they can't ignore a big chain store if they want to stay in business. Size counts. The bigger you are, the more you can bully others.
Loh K L
rrp is there to provide retailers with a margin to carry the product and reduce the risk of a damaging price war.
too small a margin and retailer will not want to carry the product.
too high a margin, the retailer could be happy but the distributor will not be happy as the product will not have mass volume.
thomas liew
I figured it would be something like that... all said though, I think all of us should be more discreet when posting prices we find in local LFS... this is especially true since singapore is so small... i.e. any undercutting by any lfs will impact others....
So say you got a good deal, or give a price range, but if you need to post prices, try to use private messages. After all, you are in a sense protecting your own interests.
Allen
I agree with Allen 100%. I was rather 'shock' to find that there was actually one discussion thread (I think in Chit-Chat) when someone actually posted 'where you can get the cheapest deal' or something like that..
To me I thought the thread ought to be removed. But I guess it is too late now.
Hunting for bargains should be part of the fun of this hobby. Is it always time and overall-cost justifiable? I don't think so. However along the way I stumble upon knowledge and I get to meet people I would otherwise not have the opportunity to do so.
Also, almost every business is the same. Certain items are priced low to attract customer and there will bound to be items priced such that the seller can make some margin for survival.
This is life:
You win some, you lose some. Overall everyone's happy.
Posting Permissions
Bookmarks