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DiehardDIYer

Rising Prices

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I haven't been paying attention.  There's probably a reason.  Some regulation on a random process/material, copper/tin/silver prices going up, workers getting paid more... the possibilities are endless.

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Over the decades I have seen cymbal prices rise because of the rising cost of raw materials, generally, around 5% each time but, I can't recall seeing everybody go up at the same time, given the different locations and economies of the countries the companies are in. This time it is over 5% and all of a sudden UFIPs don't seem as expensive anymore.

Another thing that is evident is the policy that no more than a certain percentage off can be given, 40%. There's no competitive pricing anymore. It's all the same, merchant after merchant.

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I do retail, although not in the drum world. However, most industries tend to follow the same model so I am going to assume that 40% is the standard list price markup and everyone is respecting the MAP pricing rules established by the MFG. With all the major brands I deal with, MAP pricing is pretty uniform and enforced. I have the option to disregard MAP only on certain holidays and black out dates, should I choose to do so. My purchasing power is low so my margins are really thin to begin with. As a result, I don't have the chance to mark down much lest I am just selling it at cost, which doesn't pay to keep the lights on. MAP seems to be a huge concern to the MFG so that all retailers; online only and brick and mortar stores have the ability to compete equally. Now, this is Minimum ADVERTISED pricing so you can speak to the retailer directly and negotiate better pricing and sell it to you at whatever price they are willing to go down to, especially if the are getting wholesale pricing.

If the retailer is not "authorized," that is, they don't have a formal agreement and didn't sign the MAP agreement, they can do whatever they want. Sometimes those items can be considered Gray market items and you may lose your warranty rights. (This is a particular concern for electronic goods like camera's and computers.) So caveat emptor.

So that's probably the reason why there isn't much price variations being advertised these days. That's my take on it. I could be wrong but I feel good about my response.

 

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I have to agree with logogogue. I have the same kind of terms with many brands in my webshop (even not listed brands). Many times has happened that customers ask a certain product/brand and they complain is too expensive. Most of the time is not the shop's fault for such prices.

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