AoDA, I see what you're...
AoDA, I see what you're saying. I'm a bit confused about your example. You're saying the la chaise has a price of almost 10k, but then you calculate your discount from 6k retail. Is there a difference between price and retail?
also, how is 'below cost' acceptable to a retailer? I can understand how it is for something on the floor (if it isn't selling, it's just losing money for the retailer every month), but if they have to order it, that is a different game. Hence, I believe, your previous evaluation of cost + 10%. I think in most situations, and especially mine where I have very few but select items, this is the best possible scenario [cost(50%)+freight(5-10%)+profit(10%)], with those percentages calculated from the retail price.
I will make it clearer
The Deep,
The original retail price at the time they purchased the unit was $6,000.00. I calculated my offer of $2,000.00 based on this number not the $9.745.00 to which they had adjusted price. It was a small lose for them and a large gain for me.
In your situation the plan of contacting all the dealers with an offer of cost (less 50%) plus 10% prepaid (for placing the order and freight added last is the best approach. Do not be afraid to hear the word "no". Do not stop until you get what you want at the lowest possible cost.
You can use the first method on targets of opportunity. Why pay more, let the average person pay for your discounts with their higher pricing. Good luck
Never assume
to know what the dealer paid. When dealers place orders for furniture, they, just like you, often take advantage of specials in the manufacturers' showrooms at market.
So, you might ASSUME that the dealer paid 3,000 plus shipping for a 6,000 sofa but he may have paid only 1,500 plus free shipping if his order or committment to the manufacturer was large enough or if the manufacturer was running a special on that particular sofa in the showroom.
If the dealer then sells it to The Ark for 2,000, he still made money even though it would appear to the layman that he sold it at a loss.
never assume - know
Riki,
You are once again correct to never assume anything. I have been at this for a very long time and not only do I have many retail contacts, I also have a great many wholesale contacts (the manufacturers) who provide me with information that may not be available to the typical customer. Many times I do purchase well below cost and the seller is losing money on that sale, but this is a short term outlook. They may lose money on a single item that has been in stock for a specified period of time (dating), but as shelf space (floor space) is valuable they replace this item with another that will sell (for full gross profit margin) and recover the lose in this fashion. Riki, you are definately misguided in your thinking. When I ran a large distribution company we on occassion would sell items below cost (yes we did lose short term money) only to make it up on the next units. It is the big picture and not the small view that is required. I do take into account the size of the organization and any additional discounts, spiffs, or dating that they may receive. In the case I have presented (the la Chaise for Vitra) I know the National Sales Manager and I was able to look at the invoice documents and I know they had a negative return on their investment. This is what I do for fun and I spend this amount (or more) on a weekly basis and I am very good at my trade (hobby). This is not bragging this is a fact. As you say that you have not purchased at retail since the eighties you may be somewhat out of the loop. I appreciate your input and I hope I have helped The Deep to get the best pricing possible.
What are you on about, Ark?
Riki said she hadn't purchased anything "at retail" since the 80's.
That means she's paid well under market for everything she's purchased the last couple of decades.
Understand?
And furthermore, the fact that you managed to cost someone money on a transaction means absolutely nothing.
I've a few close friends in the business and Riki's take on commitments and discounts dependent on retailer/manufacturer relationship is spot on.
Understand?
You're wrong.
Understand?
Ark, I think
we have a misunderstanding. Before I moved to Switzerland, I was a DEALER in America for 15 years. I bought at wholesale from various manufacturers at the Dallas market, the Atlanta market, the new (well, maybe now it is not so new!) Vegas market, High Point, etc.
My point was that a buyer should not assume that a dealer has paid 50% cost plus shipping and start their negotiations from that point. Oftentimes, a dealer has paid much LESS than that for new furniture. Sorry to burst your bubble, but that is just the way it is.
So, to all the BUYERS out there who are interested in new furniture, make the dealer an offer. You never know what they paid for it, how long they have had it or how badly they want to get rid of it.
correct for me
Lunchbox,
You may think as you wish. I believe that Riki is very able to speak for herself and does not require your help. Your constant desire to prove me wrong is tedious and boring. I was addressing The Deep and Riki not you. Please do not ruin the post in your usual manner.
not wrong
Lunchbox,
I am correct and I choose to let you think as you please. Once again, my comments and postings were for The Deep and Riki, who made reasonable statements with out repeating themselves. I ask you again to please leave the negative comments and personal feelings out of your post and do not ruin this thread in your usual negative manner. This thread was supposed to be helping The Deep and I noticed that you have not added anything he could use for his acquistition. Please try to confine your comments to postive assistance to those who ask for help and not pointing out others perceived errors.
yes wrong
Ark of Decorative Arts,
But I was contributing to this thread and helping The Deep by correcting your misconceptions which might have misguided The Deep away from Riki's very good commentary and advice.
Understand?
This forum is only as good as the info posted.
Understand?
no help needed
Lunchbox,
Riki does not require your version (saying who is right and who is wrong - that is judging) of help. My information is correct. I am sure The Deep can read my comments and Riki's and make their own informed decision without having an unappointed judge on the sidelines. Read your own posting, no advice is offered just judgement. As usual you continue to attempt to hijack and ruin the post for your own selfish interest. I pity you. The Deep, if you are still reading this post you may be the "judge" if Riki's and my post have been of any help and please let us know if Lunchbox has helped you in any way.
"Lunchbox, Riki does not...
"Lunchbox,
Riki does not require your version (saying who is right and who is wrong - that is judging) of help. My information is correct. I am sure The Deep can read my comments and Riki's and make their own informed decision without having an unappointed judge on the sidelines. Read your own posting, no advice is offered just judgement. As usual you continue to attempt to hijack and ruin the post for your own selfish interest. I pity you. The Deep, if you are still reading this post you may be the "judge" if Riki's and my post have been of any help and please let us know if Lunchbox has helped you in any way."
Astounding post.
Judge? Were you not then the judge of Riki's comment? And furthermore, were you not gloating and patting yourself on the back for your supposed expertise in doing so?
I'll not address the rest of your post as it's all too predictable in its condescension and delusion.
Believe me, I try my best to ignore you. But this forum is what it is because there's a knowledgeable group of design addicts who offer their advice and experience at will. You might think about whether or not you do in fact have any expertise or knowledge to offer before posting. Because if you do post something which is incorrect, someone will correct you I assure you. Whether it be me or someone else...
I am correct
Lunchbox.
I am correct and you are... Your postings are always the same, inflammatory and poorly written. I would think a slap on the wrist from Patrick and Alix would be enough for you. Rest assured that you are person everyone looks to make corrections for them. Stop ruining the post with your typical bad attitude.
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