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285 posts

Ultimate Geek
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Topic # 92775 5-Nov-2011 12:28 Send private message

I got a voucher for Bond&Bond/Noel Leemings which is for Cost+5%+GST and includes apple products.

I rang up NL to find out how much I would save on the AppleTV2 (that they have retailing for %169.99) and they said about $3 something (I think it was $3.43). This took the price down to $166.56

To me this makes the cost price around $137.94.

Would that be plausible - that there is practically no margin on the AppleTV2 for retailers meaning that a "special voucher" such as this is effectivel worthless?




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  Reply # 541435 5-Nov-2011 12:36 Send private message

Unless things have changed recently the retailer margins on Apple products are all under 10%, hence the reason Apple products are typically all exclused from specials and interest free deals.


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  Reply # 541439 5-Nov-2011 13:13 Send private message

Retail profit often runs on rebates as well.

This causes the retailers that sell more product to keep the market price but get a margin as they don't know what rebate they will get until they have sold the product through.





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  Reply # 541447 5-Nov-2011 13:47 Send private message

When I wanted my shop to become an apple reseller, a few years ago, they told me the margin on most Apple products is 6%!
I told them to stuff off.
Also, with the hoops you have to jump through to become an Authorised Apple reseller, it just isn't worth it.
Where the retailers make money is on the accessories for Apple products.




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  Reply # 541465 5-Nov-2011 16:02 Send private message

Short answer, yes totally plausible that you would only save $3

Longer answer: The "cost+x%+GST" deals almost never save you anything meaningful on electronics. Sometimes whiteware or vacuum type things... But not TVs and and certainly not computer or gaming equipment.

Caveat: Yes there will be people out there that claim to have made good savings on these deals - but there will be MANY times more people that have saved more by waiting for the next ordinary sale.

IMO the "cost+x%+gst" 'deals' are for suckers.

Cheers - N

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  Reply # 541473 5-Nov-2011 16:47 Send private message

At my previous job I was able to purchase stuff from the likes of Noels at what their staff would pay, they basically said they make nothing off stuff like apple and gaming consoles, hence the above comment of general exclusion from interest free deals

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Ultimate Geek
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  Reply # 541483 5-Nov-2011 17:27 Send private message

Very little margin in Apple indeed, my former employer made about 3% distributing Apple products, almost not worth doing!

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Joseph

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  Reply # 541508 5-Nov-2011 19:38 Send private message

"cost" always means invoiced price, which is typically a lot more than the actual cost the retailer paid.

google 'pocket pricing' to see what I mean.

(this is also how car dealers can often 'prove' they are making very little money on a car they sell you by showing you the invoiced price, when actually they are making a killing because of all the off-invoice rebates, kick-backs,etc etc)

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  Reply # 541529 5-Nov-2011 21:41 Send private message

NonprayingMantis: "cost" always means invoiced price, which is typically a lot more than the actual cost the retailer paid.

google 'pocket pricing' to see what I mean.

(this is also how car dealers can often 'prove' they are making very little money on a car they sell you by showing you the invoiced price, when actually they are making a killing because of all the off-invoice rebates, kick-backs,etc etc)


Yes when I purchased a Tv and got them to price match i was told they were selling below cost. Why would they then sell it? Because they then get a rebate back.

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  Reply # 541532 5-Nov-2011 21:49 Send private message

Apple's retail pricing structure is one of the reason sales people will try to sell you higher margin items like Android phones / WDTV boxes / Sony MP3 players etc... telling you that Apple products are 'useless / over hyped' etc etc.
Having said that, if Apple offered enough margin - then retailers would almost instantaneously drop the prices to cost / below cost to gain market share. Even if they aren't supposed to be loss-leaders, they will be... such is the demand.

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