Re: how Retail works in American Music
- From: "TommyMemphis" <tommy@xxxxxxxxxxxxxxxxxxxxxx>
- Date: 11 Apr 2006 07:16:17 -0700
Jack, Ventura has his head up his ass. First off, MAP is the price that
ALL dealers sell at and advertize at. No manufacturer has a deal to
stop cuthroat pricing. That would be a violation of FTC regulations.
MAP was initiated because of dealers like MF who directly try to put
independent dealrs out of business.
The cuthroat policies of Musician's Friend are well documented in ALL
the music trade publications. MF and CG compete with each other and
even GC stores will try to steal a sale from each other. Get a copy of
Music or Sound Retailer, Music Inc. and read first hand for yourself.
these are the publications read and followed by music retailers.
Regarding MAP. The lowest advertizable price is MAP. It is emplyed by
Hohner, Roland, Yamaha, Fender and every other major player.
Retailers DO NOT SET THEIR online price unless they want to price higer
than everyone else, which would be suicidal. Here, look for yourself.
Let's go shopping for a Peavey PR15N loudspeaker. Shall we?
Daddys Junky Music
Same Day Music
Andy's Online Music
American Musical Supply
Do you notice a commonality? $199.99 is MAP. I challenge you or
anyone else to show me ONE SINGLE DEALER adtertizing the PR15 lower
that 199.99. Oh, a few might play pennies games, 199.95, 199.89, but
these dealers are so small and miniscule the manufacturers don't waste
a lot of resources policing them.
The Peavey PR15 lists for 299. IS sells for 199.99 UNIVERSALLY, and it
costs the dealer $150.00
Manufacturers claim that they don't give special pricing to the big
stores but they do, by way of volume discount. SO MF makes mroe on the
$199.99 sale than your local Mom-and-Pop store makes. Of course
jackoffs like Ventura are the first ones to ask the music store for
technical help after purchasing online.
While Ventura proceeds administering fellatio to the Musician's Friends
executives for making "good and healthy profits on him" independent
dealers are dropping like flies due to cuthroat pricing.
I still haven't heard Ventura explain why Musicians Friend is putting
music stores inside Best Buy and Costco: and in the same neighborhoods
as already established GC stores.
Nobody is arguing about the magnificence in size of MF. This discussion
was started to illustrate that dealers have no practical ability to
command healthy margins because the MAP is set by the manufacturer and
it is NOT a healthy margin.
The pity in all of this is that people will gladly hunt out cuthroat
prices and then run to the local dealer for support. MF is a great
place to buy gear, but it is doing to the Mom-and-Pop retailer what
Home Depot and Lowes have done to the local hardware store.