Psst... Ready to join TalkBass and start posting, make new friends, sell your gear, and more?  Register your free account in 30 seconds.

F Bass and the standard markdown

Discussion in 'Basses [BG]' started by Jerry J, Jul 31, 2002.


  1. Jerry J

    Jerry J Supporting Member

    Mar 27, 2000
    P-town, OR
    I seem to recall a thread quite awhile back that discussed the minimum street price that F Bass allowed their dealer to sell for. I guess it's another way to fix prices but I'm sure that they all do that.

    Out of that thread there was talk about nothing more off of list than something like 10%. Geez, maybe it was a "for sale" now that I think of it.

    But anyway, does anyone know if there is a dealer agreement between F Bass and the respective dealers to limit the lowest price that they can sell for?
     
  2. I'm really not sure about this whether or not there's some sort of standard markdown. Just today I played an F Bass that I'm thinking about purchasing (sunburst BN5, though it looked more like a tobacco burst -- this is the only thing that kept me from jumping on it today), and I was quoted a price of $2399 from the dealer. As far as I know, that's about 75% of list for that particular bass. In fact, it was labeled at $3200 making it exactly 75% of what was on the label.
     
  3. Peter Parker

    Peter Parker Banned

    Jun 10, 2001
    Actually, there is an agreement. Dealers are only supposed to sell F's for no more than 20% off list. A BN 5 lists for 3399 now and should sell for $2719.20. I don't mind these agreements but obviuosly not everyone is going to play by the rules.
     
  4. I'm certainly not a fan of those kinds of agreements, but there's nothing I can do about it. If I decide not to go after the particular bass I played, I'll probably be looking to go used. $2700 is just a bit out of my range right now.
     
  5. Larry Kaye

    Larry Kaye Retailer: Schroeder Cabinets

    Mar 23, 2000
    Cleveland, OH
    20% is what the agreements are. It's puts all dealers large and small on the same playing field. There are more creative ways to get a sale, even in the music business.

    For instance, include the freight in the price. Let a dealer convince me to buy from them because of their service or maybe they extend the warrantee an extra year, maybe they can offer a little higher discount on some other add on item I want like a wireless or an effects pedal.

    There are ways to get sales without violating these agreements. At this point, if you want an F Bass with the current $3399 pricing, you better be prepared to pay $2700 for the bass and a gig bag. There's plenty of used Sadowsky's and new Lakland's along with ton's of other nice basses available for $2400 where no one's violating agreements.

    Just an opinion...per Brad J, I can always be wrong!

    LKaye
     
  6. Peter Parker

    Peter Parker Banned

    Jun 10, 2001
    Yes sir, I can say without a doubt Larry knows his way around some rules:D
     
  7. Jerry J

    Jerry J Supporting Member

    Mar 27, 2000
    P-town, OR
    This is what I thought. 20% huh?

    I sure know that Larry is the expert. We've exchanged some emails lately regarding this matter. I guess I posted this out of frustration at some of the pricing practices. I understood that fixed pricing was outlawed several years back but I guess there are other ways around laws.
     
  8. Larry Kaye

    Larry Kaye Retailer: Schroeder Cabinets

    Mar 23, 2000
    Cleveland, OH
    I hope I got a compliment!! Just so you know, I don't like the "restraint" of trade thing either, but in my business, unfortunately, my company charges the highest per hour rate for our service in the entire US. We're also the best MOST of the time, but more and more, quantity at a cheaper price seems to be our worst enemy. We have to be constantly coming up with new ways to create value and differentiators, which include throwing in some extra services or customized reports for 1/2 price, a couple of hours of consulting, etc, but once they agree, we retain a good amount of customers. Now I can complain "how the rock can my competitors sell what is essentially pretty close to the same service for $15 or $20 cheaper," or I can say I know we're more expensive but our price includes x y and z+ we give you guaranteed results etc.

    I thoroughly appreciate a retailer who can make deals happen whether the buyer or seller comes up with the terms. The company I bought my F Bass from had to make the deal happen and I definitely respect them for it.

    My whole experience with the F Bass I just bought was very positive. I learned some stuff about retailing and issues that these types of agreements and price cutting can create for different types of stores. I am very satisfied with how my deal turned out even if I paid the dealer agreed to, not more than 20% for the bass.

    Thanks.

    Larry
     
  9. Jerry J

    Jerry J Supporting Member

    Mar 27, 2000
    P-town, OR
    So really, in essence, a retailer could sell a particular bass at the agreement price of 20% off to make the manufacturer happy and then give a much higher trade in price to lower the actual cost to the buyer. This way they would stay within the guidelines but still give the buyer a better deal.

    I need to find a dealer that is willing to work that way with me. ;)
     
  10. Larry Kaye

    Larry Kaye Retailer: Schroeder Cabinets

    Mar 23, 2000
    Cleveland, OH
    I know nothing. I see nothing. I trade in nothing!!

    L
     
  11. Peter Parker

    Peter Parker Banned

    Jun 10, 2001
    Yes indeed 'twas a compliment. You have given me an idea or two that I can't believe I hadn't come up with already. Thank you:)