Quote:
Originally posted by tdatk
Randy,
Not trying to eliminate the retailer, as noted, just trying to point out that the mark up on resale is not justified. Professional marketing , give me a break.. just another avenue for the MBA's to justify 4 years of college in the art of resale profit greed.
I'm saying that a growing proportion of the business grads are in profit taking and at a unjustified level compared to the labor force. Education does not give licence to take advantage of people although I must admit, capitalism is based on it. A good example is the 7% commission realtors take on home sales. On a $200,000. home that's 14k for what ... paradeing a couple of people through and closeing. It's highly unlikely the guy's who actually built the home, taking months, made that kind of profit. It's not uncommon to see 50-100% markup on industrial parts just to cover "overhead". We can debate what is really nessary but when all things considered, the bulk of profit should go to those that created/crafted the product.
Tim
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Believe me, if price is what drove sales and volume, then top line (retail) wouldn't exist. That being said, is it price, or is it value that drives people to buy?
What determines fair? Whether or not the guy sititing on the other end of the table can survive for less? What about risk? The guy that's gotta put the money up front to build the house? If it doesn't sell, he doesnt eat. He hires a Realtor to sell it - just to be sure it sells. If you don't buy, the sales guy doesn't eat. If that happens, then the market corrects itself through attrition or re packaging.
What I mean is that selling an item to the general public is a lot harder than most think it is, that's why the business is what it is. If you don't see the
value then you don't buy. Now, how do you find a way to make it a value? Well, there you go - sales force.
As I said before, if there was a way that they guy who made the product could handle the risk, and sell to the end consumer without the middleman (sales) they would. Historically, that never works out though.
Parting words - It ain't the price that's gonna close 'em, it's the value.
Just my $ .02.
rjp