Topic: RRP? (Read 5589 times)

norbs · « **on:** January 29, 2013, 08:38:45 PM »

Do you buy from a retailer or direct?

Is retail inflating prices?

Let say I want to buy a camera.... i go to the shop i look at it and then I buy online!

Manormanic · « **Reply #1 on:** January 29, 2013, 08:44:45 PM »

Likewise - the John Lewis effect!

tim2000s · « **Reply #2 on:** January 29, 2013, 09:19:38 PM »

Which is why Jacobs and Jessops have gone into Administration. The overheads of running a retail chain like that are much higher than a warehouse based business.

Alvaro · « **Reply #3 on:** January 29, 2013, 10:39:05 PM »

Depends. I'm idealistic so I always buy paperbacks from an indy bookshop rather than Amazon, or a bat from a maker/indy business. It's great to chat to people who aren't faceless and take a bit of time to to the extra mile. Softs I try and get cheap from wherever cos I'm jot that stupid...

joeljonno · « **Reply #4 on:** January 29, 2013, 11:07:57 PM »

Depends on whether you want something that is always the same or if each item can be different under the same title.

Where you are talking about a camera, these are mass manufacturer and probably by machine. The differences between each camera will be minute and not affecting the outcome.

A bat is a different kettle of fish as we all know you could pick up three 'identical' bats and each will feel and perform differently

ACM0608 · « **Reply #5 on:** January 30, 2013, 05:36:57 AM »

Think this is why so many shops and businesses are going into administration because like you say most people just go to the retailers now to try things or see what they look like then try and get the best deal online. Not sure what this will mean in the long term though. Will there be any shops left in 20yrs other than supermarkets? Time will tell I guess.

Manormanic · « **Reply #6 on:** January 30, 2013, 06:27:07 AM »

The problem is that there is so much disreputable behaviour from businesses big and small that it is difficult as a customer to do much more than go for the cheapest possible solution...

trypewriter · « **Reply #7 on:** January 30, 2013, 09:43:25 AM »

Yes, but if you go to the shop you can have a root around to find something that you really like, you might get a cup of tea, you might even be able to negotiate on the price. You'll also more than like spot a bargain that you weren't actually in the market for...

Fezballoh · « **Reply #8 on:** January 31, 2013, 07:15:02 AM »

Quote from: norbs on January 29, 2013, 08:38:45 PM

Do you buy from a retailer or direct?

Is retail inflating prices?

Let say I want to buy a camera.... i go to the shop i look at it and then I buy online!

Are you saying that the price of bats are inflated by retailers? I spoke to a retailer about this last year and he claimed that some bat companies are driving their prices up to unresaonable levels and he cannot shift them as a result.

Is this what you're getting at, Norbs? Thing is, as a bat maker, how much do you want to make on a bat? How many bats can you reasonably expect to turn around in a day without compromising on quality? The fewer bats you can make, the bigger the margin you're looking for per bat, Hence a �350+ bespoke experience.

Not sure what I think of M&H charging �400 off the shelf but then I've never used one.

dmacwana · « **Reply #9 on:** January 31, 2013, 07:54:52 AM »

Quote from: norbs on January 29, 2013, 08:38:45 PM

Do you buy from a retailer or direct?

Is retail inflating prices?

Let say I want to buy a camera.... i go to the shop i look at it and then I buy online!

Don't know how many of you have experienced this , but I bought my SG bat at a cheaper price from a retailer than what it is advertised for on the official SG website !!

mattw · « **Reply #10 on:** January 31, 2013, 08:00:03 AM »

Quote from: dmacwana on January 31, 2013, 07:54:52 AM

Don't know how many of you have experienced this , but I bought my SG bat at a cheaper price from a retailer than what it is advertised for on the official SG website !!

I would assume so - M&H sell on their own website at �RRP for example, but retailers tend to offer a discounted price to the �RRP.

norbs · « **Reply #11 on:** January 31, 2013, 08:07:08 AM »

Mornin' Fez

Quote from: Fezballoh on January 31, 2013, 07:15:02 AM

Are you saying that the price of bats are inflated by retailers? I spoke to a retailer about this last year and he claimed that some bat companies are driving their prices up to unresaonable levels and he cannot shift them as a result.

Nope I'm not saying that... I was hoping for a discussion yes, that is why we are here afterall.. but I will answer your questions and give you my opinion at the same time....

By the time the bat ~~maker~~ company gets a cut and the retailer gets a cut then you have to increase the RRP price otherwise no one will get anything for it!

As I mentioned and people have they like to go to the retailer to see something... This isnt a new thing it has been happening for decades and one of reason why we use salix alba caerulea. [White willow sold more]

But I digress if the source company sold at a different price to the retailer you'd have the "John Lewis" effect as Manormanic mentioned. So it is good thing that source and retailer prices match otherwise the retailer gains nothing as there is no point in him stocking it.

For him/her to stock it there needs to be something in it for both parties, so it isnt neither their issue or the source company more the customer that increases the price due to the demand to view/feel the product [I think I finally answer one of my questions on CBF!!!!]

Quote from: Fezballoh on January 31, 2013, 07:15:02 AM

Is this what you're getting at, Norbs? Thing is, as a bat maker, how much do you want to make on a bat? How many bats can you reasonably expect to turn around in a day without compromising on quality? The fewer bats you can make, the bigger the margin you're looking for per bat, Hence a �350+ bespoke experience.

I dont sell to retail that is why I'm priced at the level I am for my standard Grade 1s, that is regardless of how many I make, can make per day etc etc it is based on my time, total workshop costs, willow, handle, stickers, glue, sandpaper, tea, biscuits [Custard Creams prefered] gorilla etc....

If I made fewer bats why would I expect a bigger margin unless the demand was so high it justified it. The bespoke experience is high because it takes up about 4hrs, bespoke stickers etc etc

Fezballoh · « **Reply #12 on:** January 31, 2013, 11:04:46 AM »

Wow, that made more sense at 7:15!

I was trying to make a point about margins when supplying to retail but I guess that doesn't apply to you. I was thinking about it with my carpenter (day job) hat on. Say My retailer gives me a price for 10 bats then I would ideally like to turn those 10 bats out in such a time that I am getting paid right for the work.

If you are at the top of your game then I guess you can charge what you like. However the really pricey guys (M&H, top end Salix) aren't selling as many bats as the big players (GN G&M, etc) and I imagine they're doing ok, which I think was what I was getting at with my turnover/profit ramblings.

Customer demand is a factor, I agree. But demand is higher for cheaper (�150/�225) bats isn't it? I think perhaps my retailer was just upset at the prices in general at the moment. He was pricing G2 Salix at about �275 if memory serves correct. The other thing affecting him are boutique brands that can undercut him, "Selling out of their car boots" as he put it. I was upset that he took this view as I'd only gone in there in the first place to ask his advice on how I was best placed to get any bats I'd made into his shop, which is a respected specialist cricket shop that serves a lot of players in my area.

Buzz · « **Reply #13 on:** January 31, 2013, 11:10:18 AM »

Please also remember that the retailer has to add 20% VAT to all their prices which has a hugh impact on profit margins - i.e. on a �200 bat the prices broken down could be...

bat actual cost:
�60 - cleft, handle grip.
�10 stickers (yes stickers are very expensive - but do sell the bat)
�45 profit for bat maker (to cover investment, their costs, tools/press/time/workshop)
�45 to shop (rent, staff costs, National Insurance, bills, tea and buscuits)
�40 vat

that is a lot of bats you have to sell before you can even pay yourself a wage.

Red Ink Cricket · « **Reply #14 on:** January 31, 2013, 11:20:41 AM »

Quote from: Fezballoh on January 31, 2013, 11:04:46 AM

Wow, that made more sense at 7:15!

I was trying to make a point about margins when supplying to retail but I guess that doesn't apply to you. I was thinking about it with my carpenter (day job) hat on. Say My retailer gives me a price for 10 bats then I would ideally like to turn those 10 bats out in such a time that I am getting paid right for the work.

If you are at the top of your game then I guess you can charge what you like. However the really pricey guys (M&H, top end Salix) aren't selling as many bats as the big players (GN G&M, etc) and I imagine they're doing ok, which I think was what I was getting at with my turnover/profit ramblings.

Customer demand is a factor, I agree. But demand is higher for cheaper (�150/�225) bats isn't it? I think perhaps my retailer was just upset at the prices in general at the moment. He was pricing G2 Salix at about �275 if memory serves correct. The other thing affecting him are boutique brands that can undercut him, "Selling out of their car boots" as he put it. I was upset that he took this view as I'd only gone in there in the first place to ask his advice on how I was best placed to get any bats I'd made into his shop, which is a respected specialist cricket shop that serves a lot of players in my area.

Boutique brands are not undercutting him unless they are selling the same product for less. they dont have the retailers profit to factor into their prices so of course they will be different. its also a different kind of product. boutique or off the shelf. its also worth taking into consideration that costs could well be alot different for the boutique brands. they buy in smaller volumes so in general costs will be more.

you will also find some retailers are just trying to make too much profit on the bats they sell. yes we all want to earn a living and pay our bills but some of the prices ive seen in the smaller shops are shocking! Yes factor in the 20% VAT but i have seen examples of bats where they are heavily inflated.they also have stiff competition from the mail order guys, although they hopefully offer more in terms of customer experience than mail order can.

Author Topic: RRP? (Read 5589 times)

norbs

RRP?

Manormanic

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tim2000s

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Alvaro

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joeljonno

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ACM0608

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Manormanic

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trypewriter

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Fezballoh

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dmacwana

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mattw

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norbs

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Fezballoh

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Buzz

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Red Ink Cricket

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