Do stores just make up RRP's?

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wallop

367 posts

Ultimate Geek

#128901 27-Aug-2013 19:08

Wife saw a fridge in Auckland on Friday and decided that it was the one for us. It was on special so on Saturday I ring around shops in Christchurch to get a price. For exactly the same model the RRP's were between $500 and $1000 more than the Auckland store's RRP. One of the ones I called was part of the same chain but would not come close to the Auckland price. We were thinking about how to ship it down from Auckland when we gave Smiths City a go. Their rrp was the dearest of the lot but they discounted it down to within $100 of the Auckland store without me having to ask. They must just guess at what the maximum someone will pay is and stick that on as the rrp.

wallop

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6434 posts

Uber Geek

#885488 27-Aug-2013 19:23

The rrp is set by the manufacturer, but just as th set different rrps in different countries, they may well set different rrps in different regions

wallop

367 posts

Ultimate Geek

#885506 27-Aug-2013 19:45

Across regions maybe, but not 4 different prices in 1 city, with a > $500 difference.

blakamin

4431 posts

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#885516 27-Aug-2013 20:07

Does the manufacturers NZ website have a RRP?
Be interesting to see... and then mention to consumer magazine if the retailers are displaying it wrong.

NonprayingMantis

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#885517 27-Aug-2013 20:20

wallop: Across regions maybe, but not 4 different prices in 1 city, with a > $500 difference.

Are you sure they were definitely the same product? Quite often products will look identical but have ever so slightly different model numbers.

Alternatively, some stores might be using older rrps given out when they bough the product, and other stores using newer rrps from more recent purchases where the cost and hence rrp has dropped.

Goosey

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#885553 27-Aug-2013 20:56

I think your confusing RRP with RSP

Reccomended Retail Price is what is suggested by the supplier/manufacturer and there is no obligation for the retailer to comply with this (as per NZ laws).

Retail Selling/Sale Price is what the retailer chooses to sell their goods at.

Therefore, the different pricing you encountered between stores is due to those retailers setting their retail price. You have to remember they need to pay their staff, operating costs etc.

NOW, some of these retailers may have purchased in bulk from the supplier or the supplier has sold them a promo of sorts to encourage the retailer to lower their RSP to consumers/shoppers.

Also, I agree with the previous poster... depending on how much stock on hand the retailer has... its a hard call to be able to reduce the selling price if the manufacturer decides to drop their RRP.

You are the consumer/shopper... you have hands and legs to shop around and a voice to negociate.
go forth and conquer !

wallop

367 posts

Ultimate Geek

#885568 27-Aug-2013 21:36

I quoted the model number when getting the prices so they should have all been pricing the same thing. None of the stores held stock, so they all had to order in from the supplier. It just amazes me the difference in prices you are given and what I ended up paying. Smiths city knocked nearly $2400 off their price without me even having to ask. This brought the fridge down to near enough the Auckland price. Must be good margins on these fridges for them to be able to do that.

wallop

NonprayingMantis

6434 posts

Uber Geek

#885571 27-Aug-2013 21:39

wallop: I quoted the model number when getting the prices so they should have all been pricing the same thing. None of the stores held stock, so they all had to order in from the supplier. It just amazes me the difference in prices you are given and what I ended up paying. Smiths city knocked nearly $2400 off their price without me even having to ask. This brought the fridge down to near enough the Auckland price. Must be good margins on these fridges for them to be able to do that.

wallop

holy crap. how much was the original price?

interested to know what model it was too...

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keewee01

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#885606 27-Aug-2013 22:44

AS someone else mentioned - I don't think you were being quoted the RRP, I think you were being given the ticket price in the particular stores. Big difference.

I think there are better margins on a lot of these things than we are led to believe. We were shopping for a variety of furniture items recently and were given an exceptional price by one store. Out of curiosity we tried another store and were given a far better deal again. Given what we paid, I figure the stores cost price is about 25% of the retail price!

wallop

367 posts

Ultimate Geek

#885767 28-Aug-2013 11:00

NonprayingMantis:
wallop: I quoted the model number when getting the prices so they should have all been pricing the same thing. None of the stores held stock, so they all had to order in from the supplier. It just amazes me the difference in prices you are given and what I ended up paying. Smiths city knocked nearly $2400 off their price without me even having to ask. This brought the fridge down to near enough the Auckland price. Must be good margins on these fridges for them to be able to do that.

wallop

holy crap. how much was the original price?

interested to know what model it was too...

It's a Electrolux ESE6977SF, starting price was $6999.99

trig42

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#885809 28-Aug-2013 12:12

It is a bit of a rort really.

Some retailers will use that unrealistic RRP when advertising their % off sales, and therefore say 20-50% off (for example), but in reality the actual price they end up selling these things for is about the same as the 'street' price anyway.

I think HN and NL (and Briscoes/Rebel) are the main culprits here. Check out a TV price next time HN or NL are advertising 20% off, then shop around and see who might be doing that price already.

BTW, Electrolux's 'RRP' for that fridge (nice fridge too) is $6799. If you got it under $5k you did well (plus, you certainly would not want to ship that from Auckland).

reven

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#885853 28-Aug-2013 13:32

i always walk into a store and say "[another store name] is offering it at [some price]". most of the time thats BS, i just want them to lower the price, most of the time they say "thats below cost, but we can match". then I just go around a few more stores and see if I can get a better deal.

usually saves you a few hundred which is nice and makes it worth the effort.

tdgeek

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#885914 28-Aug-2013 14:54

End of line soon and not all retailers have the reduced price?

MikeB4

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#885930 28-Aug-2013 15:18

Recommended retail price is simply that a recommendation that the manufacturer gives as guideline to retailers,there is no obligation to follow it. it is illegal for manufacturers to set or enforce the price.

mxpress

376 posts

Ultimate Geek

#886047 28-Aug-2013 17:57

Many years ago in another life time (about 1980's) we had a mark-up of 40 - 50% on white and brown goods. Discounts were rarely given. We didn't need to there were no chain stores. Even records and CD's had a 33% mark up and no GST then either.

mxpress

pctek

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#886570 29-Aug-2013 15:10

For exactly the same model the RRP's were between $500 and $1000 more than the Auckland store's RRP. We were thinking about how to ship it down from Auckland

Different shops get different buy prices from the wholesaler - depending on quantity they buy. No different form IT parts.....
And as you see, freight costs can be a factor in why things cost more away from Auckland.

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