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Interesting Reverb article

Discussion in 'Bad Dog Cafe' started by Dacious, Jul 10, 2018.

  1. Dacious

    Dacious Poster Extraordinaire

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  2. jaybones

    jaybones Friend of Leo's

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    Interesting read.
     
  3. Obsessed

    Obsessed Telefied Silver Supporter

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    No surprises. Although, I gotta question the 50 to 100% markup at the dealer. Someone here must know that number.
     
  4. bender66

    bender66 Poster Extraordinaire

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    My, as of Wed, previous job involved overseas produced goods sold by an actual storefront dealer. That 50-100 margin was accurate for us. 40% was basically a going out of business sale.

    A great co worker of mine took a job at the USA version of the parent manufacturing Asian company. Through him I found out what their costs are, what the actual manufacturing costs are, etc. They manufacture everything from a $300-10,000k retail product. The manufacturing cost is mind blowingly low as you would imagine.

    Lot of people to pay along the way. Those dealers are getting table scraps so enjoy that business model while it lasts.
     
  5. tfsails

    tfsails Friend of Leo's

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    I was in the scuba business for several years, and they had a 100% markup. I wouldn't be at all surprised if music shops are the same way.
     
  6. Art VanDelay

    Art VanDelay Tele-Afflicted

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    Try bars with 400% markup
     
  7. alnicopu

    alnicopu Friend of Leo's

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    CAPITALISM!!!

    I was talking to Hartley Peavey once. Said he could build any guitar for under 200.00. Said he tossed the blem parts in his dumpster and didnt care that people dove for them.
     
  8. beninma

    beninma Friend of Leo's

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    Just an example for another overseas product, I've heard many times from good sources that with bicycling products there is a near 100% markup from manufacturer -> wholesaler -> retail. The wholesaler's markup makes it almost impossible for the retail shop to compete with online vendors who aren't going through the wholesaler. The wholesalers have exclusive distribution rights from the manufacturer and the retail shops will basically go out of business immediately if they cross the wholesaler.

    I've also heard from Asian friends from garment producing countries that the markups on fashion are way beyond manufactured goods like electronics, sports equipment, musical instruments. Like they can sell a $100 pair of jeans for $1 overseas and make a good profit. The example brand I was given was Ralph Lauren/Polo... actual cost to produce < $1.
     
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