RCU Forums - View Single Post - RC Shop marketing tactics
View Single Post
Old 04-16-2010, 07:39 PM
  #27  
tripower222
Senior Member
My Feedback: (5)
 
tripower222's Avatar
 
Join Date: Nov 2009
Location: Tarpon Springs, FL
Posts: 307
Likes: 0
Received 0 Likes on 0 Posts
Default RE: RC Shop marketing tactics

It makes sense to me. If you own a LHS in a remote area with limited volume you may need to charge more than the MAP (minimum advertised price) that most volume stores/dealers sell at.

 

MAP is a price that no vendor is allowed by contract to advertise lower than, this levels the playing field between high and lower volume retailers. You will note that sale prices are usually the same where ever you go, thats why.

 Example: A Hangar 9 Ultra Stick 40 retail price is 209.99 the price they make it available for 144.99 which is likely their MAP. If you need to make a little more per plane to keep doors open (due to low volume), you may price it at $169.00, $179.00 or whatever works for the store.

Now a guy walkes  into your store, buys an Ultra Stick 40 for $179.00, to find mfg retail is $144.99, If an inflated suggested retail miffed him imagine how mad he is cause he feels ripped off. Probly wont see him again.

I own a company that makes and sells products to end users and vendors (who need to make money to or they wont sell my product) it’s a delicate balance of MAP and retail price that works for customers, vendors and MFG's alike.

 

By the way my theory is a little different that Horizon, and some of the others If you go to my website I don’t sell at MAP I don’t think is right to under cut or make the vendors feel like they are competing with me.


 
Any way thats my take on it.
 

Check us out at  www.OX-USA.com