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RRP and its confusion


Quagga

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Posted

I dont understand why we have RRP in SA.

 

Surely the moment to recommend a retail price you are looking at fixing the price or not?

Should every shop not decide what they want to charge?

 

Here I found a chainring on the manufactures website for R950 and not on special so I would understand that as RRP.

 

Then on another site I see the SAME chainring for R900, which is good because this seller has decided to sell it at that price. 

What I do not get is their RRP.....R1000?

 

 

 

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Posted

ignore the RRP - it's often used to make a sale price better than it is - from a discount point of view.

 

A sale is clear for me : WAS and NOW  - the difference is the actual saving to the consumer.

Posted

ignore the RRP - it's often used to make a sale price better than it is - from a discount point of view.

 

A sale is clear for me : WAS and NOW  - the difference is the actual saving to the consumer.

Funny is that the WAS is often increased and then the NOW is still very close to the real WAS

Posted

Ignore you say?

There is a moral element to this.

 

The so called "saving %" published it based on their idea of the RRP, so they are in fact BS'ing you. 

Posted

The only important price is the one you pay.

 

I ignore any and all RRPs. It's marketing crapola designed to make you buy stuff.

 

By the amount of successful scamming on thehub I would say most of us can't refuse a "great bargain".

Posted

"RRP" = Recommended Retail Price. This is usually set by the manufacturer based on certain levels of markup for each party involved.

 

Eg: Maxxis sells a tyre at 15USD to a distributor, the distributor lands the product for 20USD after shipping and taxes, so let's say ZAR250. The distributor sells it to yout LBS for R400, and they sell it to the public at R600 (RRP).

 

It's not price fixing, it's the reccommended price where each party makes their fair share. Some bike shops cut out the middle mam amd can give bigger discounts, others are willing to make a smaller profit to sell higher volumes. Either way, I think it's fair enough to indicate RRP and the percentage saved for markering purposes.

 

Yes, not many shops actually sell at RRP, so I don't really take that % saving too seriously - but I don't think there is anything wrong with publishing it.

Posted

"RRP" = Recommended Retail Price. This is usually set by the manufacturer based on certain levels of markup for each party involved.

 

Eg: Maxxis sells a tyre at 15USD to a distributor, the distributor lands the product for 20USD after shipping and taxes, so let's say ZAR250. The distributor sells it to yout LBS for R400, and they sell it to the public at R600 (RRP).

 

It's not price fixing, it's the reccommended price where each party makes their fair share. Some bike shops cut out the middle mam amd can give bigger discounts, others are willing to make a smaller profit to sell higher volumes. Either way, I think it's fair enough to indicate RRP and the percentage saved for markering purposes.

 

Yes, not many shops actually sell at RRP, so I don't really take that % saving too seriously - but I don't think there is anything wrong with publishing it.

 

Even if it is wrong by a whole %?

Do you think they will agree to let us pay the correct amount based on the published savings %?

I doubt it. 

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