FX6 sale-$289 + $50 gift card bonus
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DMD123- Lifetime Member
- Join date : 2010-06-11
Age : 56
Location : Tacoma, WA
Re: FX6 sale-$289 + $50 gift card bonus
This is kind of amazing. I mean it's a great deal. But the lengths at which the internet retailers will go through to get around the MAP. Minimum Advertised Pricing.
The reason the Fx6 came out was to break the contracts they had with internet retailers on the fx5. Because there was no MAP pricing. You could find fx5s for $200-220 Shipped online. This was about $20-40 over the cost of the unit. Their sales for the company tanked because All retail stores can't compete with that kind of price. It's just simple economics. A warehouse in detroit with cheap or illegal labor, will save tons of money compared to a retail store in Seattle. The overhead difference is huge.
So now with the new contracts, this is clever. Offer a $50 gift card with purchase almost means it's $50 cheaper to the consumer.
The reason the Fx6 came out was to break the contracts they had with internet retailers on the fx5. Because there was no MAP pricing. You could find fx5s for $200-220 Shipped online. This was about $20-40 over the cost of the unit. Their sales for the company tanked because All retail stores can't compete with that kind of price. It's just simple economics. A warehouse in detroit with cheap or illegal labor, will save tons of money compared to a retail store in Seattle. The overhead difference is huge.
So now with the new contracts, this is clever. Offer a $50 gift card with purchase almost means it's $50 cheaper to the consumer.
Re: FX6 sale-$289 + $50 gift card bonus
That is what I got my FX5's ($220) for on Amazon a few years back. They used to have those with no media and then another that included media for a little bit more. With the FX6 they at least give you some media, though not very much. Price fixing by companies is good for them but consumers are stuck paying more.
DMD123- Lifetime Member
- Join date : 2010-06-11
Age : 56
Location : Tacoma, WA
Re: FX6 sale-$289 + $50 gift card bonus
I actually think it's worse for the consumer.
Lets take a real look at this. My cost wholesale on the filter is $269. To match online price of $289.00 minus $50. I'd have to be selling it at $239 essentially. Which is at a loss. If I buy in Huge quantities. I could get as much as 15% off. Which wouldn't make it a loss.
But here's where the consumer loses out. Stores like me wont bring in replacement parts etc. So if you have a problem you'll have quite a pickle on your hands. Sure you can order a new part, but what will you do for filtration in the mean time?
No imagine a world where they adhere to the MAP. Of $289.00 which is the lowest price you can advertise. Then that leaves everyone $20 to make on the product and I'd want to support the product and carry replacement parts. The way the market is running now is parasitic and not sustainable. Online merchants will sell below cost on big ticket items and make it up on lesser items to hurt competition. This isn't directly related to stores like me. But other online competitors even.
I think the consumers actually do best when there is MAP pricing and everyone who wants to support a brand can make money. Instead of being forced to charge more than competitors, or take a loss.
Lets take a real look at this. My cost wholesale on the filter is $269. To match online price of $289.00 minus $50. I'd have to be selling it at $239 essentially. Which is at a loss. If I buy in Huge quantities. I could get as much as 15% off. Which wouldn't make it a loss.
But here's where the consumer loses out. Stores like me wont bring in replacement parts etc. So if you have a problem you'll have quite a pickle on your hands. Sure you can order a new part, but what will you do for filtration in the mean time?
No imagine a world where they adhere to the MAP. Of $289.00 which is the lowest price you can advertise. Then that leaves everyone $20 to make on the product and I'd want to support the product and carry replacement parts. The way the market is running now is parasitic and not sustainable. Online merchants will sell below cost on big ticket items and make it up on lesser items to hurt competition. This isn't directly related to stores like me. But other online competitors even.
I think the consumers actually do best when there is MAP pricing and everyone who wants to support a brand can make money. Instead of being forced to charge more than competitors, or take a loss.
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