In Reply to: Pass on all the savings to the customer, I think not! posted by 13th Duke of Wymbourne on December 17, 2024 at 10:48:11:
"For a start you have to pay for the direct sales team, but the.price to the end user should go down."True but at least the revenue is kept within 'the family' and it's much easier to manage employees vs babysitting a swath of dealers across the country.
I like to use PS Audio as an example (Cary too). As I recall from many years back it was so easy to get 30% or more off MSRP on these brands just by asking for a discount. If dealer A gives you 30% off dealer B will go 35%. The 'order taker' dealer network offered no 'value-add' and was probably a nightmarish mess for PS Audio to manage with territory disputes, etc., not to mention diluting the brand image through all the cut-throat discounting.
They eliminated the dealers and the associated headaches and overhead of managing them. PS sells direct now. PS Audio prices are firmer but they have the occasional sale and they have a pretty good trade-in program. But like everyone else their prices have gone up, maybe not as much as they would have if they kept the dealers.
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Edits: 12/19/24 12/19/24 12/19/24
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- RE: Pass on all the savings to the customer, I think not! - AbeCollins 09:37:02 12/19/24 (0)