Why even have a "list" price?

[fenderhutz]

Anyone else find it humorous that gear companies have an astronomical "List" price on items and the "street" price usually 20-40% less than the "list" price.

Is the "list" price a total marketing gimmick or what? Do companies actually charge "list" for anything and what does the "list" price even mean?

Just seems like pointless numbering to me.

[moomoocajoo]

I've always wondered the same....maybe someone can enlighten us

[bradjonesbass]

it's because people like haggling. the street price is what the bass is actually worth and the MSRP List is so people think they're getting a discount when they buy it at street price. Then there are the few numbskulls who actually pay list and really drive up the profit margin...

[fenderhutz]

I know Mesa requires dealers to sell at list or they lose the dealer rights. One reason I have never bought anything "new" from Mesa even though I love the gear.

[FL Knifemaker]

The place I buy my carbide tooling is the worst for this. They have a price in their catalog and website. EVERYONE gets 70% of list price If you spend over 2K on an order you get 72% off list price Everytime I speak to the sales guy he has to go through the math to figure out pricing Why set the list price so FUGGIN high in the first place???

[fenderhutz]

I wish gas prices were just list prices

[pedroims]

price list is a marketing tool , part of the pricing strategy, supposed it was invented to standarized prices for the same item, as an example cars dealer always has MSRP in the sticker, same for basses, stores always has the MSRP and the minimum advertised price. Companies do not allow the retailers to announce prices below the minimum they suggest, it will avoid a price war and also it will keep the image and prestige of the brand, Could you image a musical store offering fenders mia at $ 800 usd? altough we can think it will be great , marketing people think that do that will ended up with a lose of the prestige due the consumers may think that fenders mia are not good enough because they are cheap.

pricing play a major role in consumer's perceptions

Set a proper pricing strategy is crucial for a company, usually many areas of a company contribute their expertise to set the most strategic price for a product: marketing, finance, designer, enginners etc.

There are many things behind pricing.Retail create the ilusion of get an expensive item at good price . price is what you paid value is what you get ( price list is the value).

[Son of Sanford]

Originally Posted by fenderhutz

I know Mesa requires dealers to sell at list or they lose the dealer rights. One reason I have never bought anything "new" from Mesa even though I love the gear.

That has never bothered me, though I've never bought any Mesa gear, either. I usually consider it a blessing that the price tag has the actual price instead of a starting point. Their "list" is usually in line with comparable company's "street", anyway.

[lowendmafia]

It is so teenage idiots and burnt out old guys can tell you what a great deal you are getting. Then they can try to add a bunch of stuff that you have no intent on buying to your tab. The world would be so much better without salesmen...

[Pilgrim]

Originally Posted by lowendmafia

The world would be so much better without salesmen...

Nope!! A good salesperson is an asset to the business and the customer...and sales experience is a big professional asset when it comes to communicating with others.

[Unrepresented]

Originally Posted by Pilgrim

Nope!! A good salesperson is an asset to the business and the customer...and sakes experience is a big professional asset when it comes to communicating with others.

I agree with you, however, it seems rare to find a person who would qualify as both a "good salesman" to both the consumer and the retailer simultaneously. I'd even go so far as to argue that the two are potentially mutually exclusive.

[Pilgrim]

I respectfully disagree. A good salesperson helps the customer find the best possible match between their product and the customer's needs and wants. Result: a sale AND a happy customer. The two are highly compatible.

[Unrepresented]

Originally Posted by Pilgrim

I respectfully disagree. A good salesperson helps the customer find the best possible match between their product and the customer's needs and wants. Result: a sale AND a happy customer. The two are highly compatible.

You left out the part about the retailer wanting profit. You classify the salesperson as the intermediary between two parties with conflicting interests, by definition the salesperson will venture further from each party's interests by moving close to the other's.

[GregC]

Originally Posted by fenderhutz

Anyone else find it humorous that gear companies have an astronomical "List" price on items and the "street" price usually 20-40% less than the "list" price.

Is the "list" price a total marketing gimmick or what? Do companies actually charge "list" for anything and what does the "list" price even mean?

Just seems like pointless numbering to me.

So does this mean you now finally understand that the Lakland Skyline Decade will not actually sell for $2k, but about $1250?

[Depth_Charge]

If you trade items or use a gift certificate, you pay list price.
If you buy something by mail order or online without haggling, you normally pay list price.
Good natured people who don't haggle pay list price.

These are all reasons to keep a higher list price IMO.

[Stanley Design]

Originally Posted by Pilgrim

I respectfully disagree. A good salesperson helps the customer find the best possible match between their product and the customer's needs and wants. Result: a sale AND a happy customer. The two are highly compatible.

It doesn't work that way unfortunately, I worked music retail for 5 years. The company owner couldn't give a rat's patooty about the customer even if you do. They want the customer to pay as much as possible for the oldest inventory you have to get it out of the store, and force you to push it on them even if it's not what's best. I got fired for refusing to do it.

I like to try and be that salesman you described, but unfortunately that is not the kind of salesman a company values.

Oh and every company has a rule that the stores can sell items down to __% below list, any lower and they lose their deal. Selling at minimum allowance is still above cost, but leaves much to be desired for profit margin, normally.

[Visirale]

Originally Posted by Todd Stanley

It doesn't work that way unfortunately, I worked music retail for 5 years. The company owner couldn't give a rat's patooty about the customer even if you do. They want the customer to pay as much as possible for the oldest inventory you have to get it out of the store, and force you to push it on them even if it's not what's best. I got fired for refusing to do it.

I like to try and be that salesman you described, but unfortunately that is not the kind of salesman a company values.

Oh and every company has a rule that the stores can sell items down to __% below list, any lower and they lose their deal. Selling at minimum allowance is still above cost, but leaves much to be desired for profit margin, normally.

Seconded. I did retail in music for a while too. I worked in a store that specialized in band instruments. I would try and sell them nice intermediate instruments, then get chastised for not trying to sell them on the pro instruments that were often thousands more. I always figured that a sale was better than no sale, and showing them instruments more parallel to their skill level would be good... But no, they are all about selling the high end gear.

I have found that the gear that has to be sold at list price usually warrants the premium.

[Pilgrim]

I hear you guys, and I do understand. It's hard to find a good, decent business with management that treats customers well. That's really a sad thing. However.....

Originally Posted by Unrepresented

You left out the part about the retailer wanting profit. You classify the salesperson as the intermediary between two parties with conflicting interests, by definition the salesperson will venture further from each party's interests by moving close to the other's.

I NEVER ignore the part about the retailer wanting profit!! No profit, no business. Bad.

The error you make is in visualizing the salesman as "...the intermediary between two parties with conflicting interests...". That certainly can be the case, but it does not have to be, nor should it be.

If it's a GOOD salesman, there's not a conflict. The customer wants a good value and a product that does what's needed, and the salesperson wants to create a good match between options in his/her product line and the customer's need.

If the salesperson comes up with a GOOD match at a fair price, everyone is happy...and the customer is likely to come back again and again. The customer also says good things about the merchant to friends...and they come in. Result: more business, more profit, positive word of mouth, and a growing and successful business.

There is absolutely no reason that a sales relationship between salesperson and customer has to be adversarial or based on conflict. I've been a salesman and I've done business with excellent salesman. On many occasions, they've educated me about what I'm buying and even steered me to equipment that worked much better for my intended purpose than what I originally asked for. Those are the people I'll stll call for help 20 years after I started doing business with them - and they're two states away.

A BAD salesperson sees a customer as a way to ring the cash register, and therefore sells them anything they can get away with while squeezing every possible dollar out of the customer. That results in negative feelings, no return visits, and lousy word of mouth.

But we're NOT talking about bad salespeople. We're talking about good ones. I know that there are plenty of companies that don't understand the value of treating people well and encouraging return business, but that doesn't mean it's the right way to do business. Companies that force salespeople to be bad ones aren't worth working for...and you can tell because they go through salespeople like socks. But find a salesperson who has been at a business for 5-10 years or more, and you probably have a good business with good management that treats its customers right. There are 'way too many of the bad ones around, but that's what makes the good ones stand out!

I sold cars for a good family dealership for three years while earning my Master's degree. In that time, I sold one gent two cars and an RV, because I treated him right, listened to him, and did my best to sell him the vehicle that was right for what he needed. He kept coming back...and I made an appropriate profit each time. Everybody happy.

[LowBSix]

Originally Posted by lowendmafia

It is so teenage idiots and burnt out old guys can tell you what a great deal you are getting. Then they can try to add a bunch of stuff that you have no intent on buying to your tab. The world would be so much better without salesmen...

Aren't you a WLAM guy???

[Ericman197]

Originally Posted by Pilgrim

There is absolutely no reason that a sales relationship between salesperson and customer has to be adversarial or based on conflict. I've been a salesman and I've done business with excellent salesman.

Have you ever bought a car before?