Retail Rules/ Policies question

DWSlingerland45

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I'm curious how this scenario is supposed to work - I may be incorrect but I think what I've discovered at my local GC is "incorrect" at best " illegal" at worst. If you've ever managed / worked in a drum shop and know the answer please enlighten me. First I have NO beef with these folks, the woman who runs the department is fantastic to deal with. Now to my question, they have a Yamaha Tour Custom ( new version) that's been there a year maybe year and a half. It retailed for either 1199 or 1299 I can't remember which. It's been on sale a few times etc... But it is at least 2020 kit. Possibly even 2019. Yamaha has raised their prices on these to 1359.00 and there Raised?? The price on that kit to that amount?? This doesn't seem like it's correct - is this normal policy for drum retailers or just a goof up on their part? Also they have 2 Ludwig BB 14x8 snares both new arrivals one is a B stock the other is not, yet they are priced identically at $899 I believe. Shouldn't there be a difference of approx 100 bucks or so between these? I'm not buying any of these drums just seriously curious as to how it works. Thanks!
 

lossforgain

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Any store can charge what they want. If they mismark the price too high, the item won’t sell. Probably not illegal unless they are purporting that a used item is actually new.
 

DWSlingerland45

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Any store can charge what they want. If they mismark the price too high, the item won’t sell. Probably not illegal unless they are purporting that a used item is actually new.
Jeremy, I hear what your saying it just strikes me as weird, I'm thinking in terms of cars, a 2019 left over isn't worth and can't be sold for the same price as the same model 2021 vehicle. I thought it would work the same way.
 

lossforgain

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Jeremy, I hear what your saying it just strikes me as weird, I'm thinking in terms of cars, a 2019 left over isn't worth and can't be sold for the same price as the same model 2021 vehicle. I thought it would work the same way.
When the used car demand soared last year, used car dealers upped their prices. The first round of cars sold for a nice profit, but they knew they couldn’t re-buy the same inventory without paying more for it. The same is going to happen to a drum set — if it has increased a couple hundred bucks in street price, the value of the used version will go up too. So whether the new set gets sold at today’s price or last year’s price, the value of a used version is going to be based on today’s price. I know that isn’t exactly what you’re talking about, and when there are spec changes to a model of drum, usually you will see the older version get clearanced out. But remember that the local GC store isn’t making that decision, some guy in a central office decides which SKU numbers get a discount. And that’s usually only after a new version SKU replaces the old version (in the case of a model change).
 

Squirrel Man

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The only time I see model years of drums is on vintage.

Fair point though but if it's the same model and still "new" I suspect it doesn't make a difference. The only time it might, I'm guessing, if the drum model changes.
 

Murat

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It is normal policy to change the prices, increase or decrease . In fact it is the most annoying part of the job when you have to change the prices on stick and skins :) It is basically covering yourself for when you need to buy the item from the supplier at a higher price. Also with bigger ticket items like drum sets, you have to go by MAP rules anyways. If the MAP on the set increases, you have to change the price. You still CAN sell it cheaper if you wish but the price has to be adjusted.
 

lamartee

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In the retail world the only rule is to make money! Smart companies make sure that they retain their customers and insure longevity by only using sales practices that are on the up and up but a retailer can sell a product for any price they desire to. Most major manufacturers of any product, (typically at the higher end) be it musical instruments, electronics or appliances have a MAP (minimum advertised price) that their dealers must adhere to as part of their distribution agreement but they are free to sell it in the store and at whatever price they want to and whatever price their market will bear. This is Capitalism 101.

(...oops what Murat said, Sorry writing this as his message was posted)
 
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DWSlingerland45

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It is normal policy to change the prices, increase or decrease . In fact it is the most annoying part of the job when you have to change the prices on stick and skins :) It is basically covering yourself for when you need to buy the item from the supplier at a higher price. Also with bigger ticket items like drum sets, you have to go by MAP rules anyways. If the MAP on the set increases, you have to change the price. You still CAN sell it cheaper if you wish but the price has to be adjusted.
Murat, thanks for that insight sir. I had no idea. I appreciate it.
 


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