Thread: Leupold Parts- Firedot battery cover NEEDED

Originally Posted by Dicko

McNotty, that is the Swarovski model (Agency model). Everyone sells at the same price.
Over here Nioa do negotiate and provide better prices with shops in exchange for volume buys.
I dont think the margins are great on small volume purchases to allow much discounting other wise.
Talking to a LGS owner recently, alot of Zerotech scopes are going out the door and its impacting Leupold sales.

That is illegal in NZ. It’s called Resale Price Maintenance. It is a breach of the law if supplier of goods:
- Specifies a price (they can recommend only)
- Takes certain action to enforce that specified price. (Eg Threatens to stop supply or increase wholesale prices)

https://comcom.govt.nz/business/avoi...ce-maintenance

No doubt it occurs because most are too scared to expose it as it’ll possibly affect their livelihood.

I’ll never forget a conversation with a large retail store manager, he was complaining about Giles undercutting them all the time and how they had all these overheads and it wasn’t fair blah blah blah, absolute bollocks. Giles was providing the same quality of service that they were, and if he could do it for cheaper then too bad.



Large retailers may complain that they have large overheads and small retailers that have less overheads are undercutting their prices, but that’s business, and also tough shit.

Originally Posted by McNotty

That is illegal in NZ. It’s called Resale Price Maintenance. It is a breach of the law if supplier of goods:
- Specifies a price (they can recommend only)
- Takes certain action to enforce that specified price. (Eg Threatens to stop supply or increase wholesale prices)

https://comcom.govt.nz/business/avoi...ce-maintenance

No doubt it occurs because most are too scared to expose it as it’ll possibly affect their livelihood.

I’ll never forget a conversation with a large retail store manager, he was complaining about Giles undercutting them all the time and how they had all these overheads and it wasn’t fair blah blah blah, absolute bollocks. Giles was providing the same quality of service that they were, and if he could do it for cheaper then too bad.



Large retailers may complain that they have large overheads and small retailers that have less overheads are undercutting their prices, but that’s business, and also tough shit.

A used to always price from Giles & then ask my local shop to match, most of the time they did!

Originally Posted by Sika 8

A used to always price from Giles & then ask my local shop to match, most of the time they did!

Haha that’s exactly what drove them mad the most haha

Originally Posted by McNotty

Haha that’s exactly what drove them mad the most haha

Sure did.....

Margin shouldn't be driven by a distribution company, worse when there are 2 distributors. If Giles was happy with less margin isnt that his choice..... quantity of sales catches up

Originally Posted by HNTMAD

Sure did.....

Margin shouldn't be driven by a distribution company, worse when there are 2 distributors. If Giles was happy with less margin isnt that his choice..... quantity of sales catches up

Exactly. Distributors and importers set the "wholesale" or "trade" price to store or retailer. They (retailers) can sell for whatever margin they want or even give it away.......
However generally nz retailers will default to blaming manufacturer or importer when things are not going their way!

I can see many of you guys have not worked in the originator part of the supply chain. If you have good products the last thing you want is a few retailers cutting the guts out out of the price. It leads to a vicious price spiral, no one makes any margin and you loose support of your dealer network.

There is a legal way to manage price in our markets that gets around price manipulation McNotty. Its widely used, for example proprietary ag chem products, Miele whitegoods , as are many other products and possibly some Austrian made scopes also .
The product is "owned" by the supplier until the point of sale. On sale, the retailer is paid a fee for promoting the product, making the sale, collecting the cash and handling any product issues. The margins are good because there is no price erosion, less working capital is employed, and dealers like it.

Originally Posted by Dicko

I can see many of you guys have not worked in the originator part of the supply chain. If you have good products the last thing you want is a few retailers cutting the guts out out of the price. It leads to a vicious price spiral, no one makes any margin and you loose support of your dealer network.

There is a legal way to manage price in our markets that gets around price manipulation McNotty. Its widely used, for example proprietary ag chem products, Miele whitegoods , as are many other products and possibly some Austrian made scopes also .
The product is "owned" by the supplier until the point of sale. On sale, the retailer is paid a fee for promoting the product, making the sale, collecting the cash and handling any product issues. The margins are good because there is no price erosion, less working capital is employed, and dealers like it.

I currently do and have done for last 3 years, not sporting, and there comes a time as a supplier that you need to dictate pricing to merchants or resellers for both to win jobs, especially when the work market is low V the volume of people tendering for the jobs is high. And it works well, especially if the middle man is just clipping a ticket and dont touch the product....if i find the business i will have a discussion with the middle man around the margin they should set in the above scenario..... if they dont like it there are other merchants that are happy for the margin for no work involved....

Hamish

Originally Posted by McNotty

Large retailers may complain that they have large overheads and small retailers that have less overheads are undercutting their prices, but that’s business, and also tough shit.

So if someone is working for wages & the boss hires someone who lives closer to work, is happy to work for less than they do & takes their job its still tough shit then ????

Originally Posted by Kiwi Greg

So if someone is working for wages & the boss hires someone who lives closer to work, is happy to work for less than they do & takes their job its still tough shit then ????

Apples and oranges.
End of the day, it’s illegal behaviour from massive companies that should do better.