RRP and its confusion

[Andrew Steer]

Yes it is. 

OCD much   

[Grogs]

My 2c - the purpose of giving an RRP should be to advise prospective purchasers as to what a reasonable price for the relevant item is (and not to lure them into thinking that they're scoring).

 

Example:

 

A set of Zipp 303 NSW tubeless non-disk clinchers. MSRP (manufacturer's suggested retail price) on www.zipp.com is USD 2 100 for the set. At 14 ZAR to the USD, this translates to ZAR 29 400 (ex South African VAT), or ZAR 34 251 (including SA VAT and any customs duties that you would have to pay if you were to import them). So any price in excess of this ZAR 34 251 would mean that I'm being ripped off.

 

Zipp 303 NSW tubeless non-disk clinchers are not easy to come by in SA. However, there are a number (i.e. more than one) of retailers that have an "RRP" of around ZAR 70 000 per set, and a "special price", for you, the vaseline-orificed SA buyer, of around ZAR 55 000. 

[karma]

OCD much   

 

Yes   and no.  ..59 <> 60. 

[Shebeen]

RRP can be handy, you have a reference on what something is worth - it just needs to come from the manufacturer/distributor. a falsely advertised RRP should be shot down

 

sometimes bartering price ends up being WAAAAAY more in the end

 

[Quagga]

"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.

So that recommends to fix the price at that number. Or at least TRY and sell it at that number VS fixing it at that number.

 

So Marketing is a bunch of BBS

[Andrew Steer]

Yes   and no.  ..59 <> 60. 

When the RRP is thumb sucked to a large degree, getting upset about a lost supposed 1% saving point 

[Andrew Steer]

RRP can be handy, you have a reference on what something is worth - it just needs to come from the manufacturer/distributor. a falsely advertised RRP should be shot down

 

sometimes bartering price ends up being WAAAAAY more in the end

 

 

But how often is a sales person this convincing?

[Quagga]

Why is it that all (independant owned as FAR AS I KNOW) Specialized shops has the SAME price on bikes and equipment.?

 

I called more than one shop and was given the SAME price for a helmet. The same price as what is on the specialized website. 

 

Seems to me that the price or markup is then set / agreed on?

 

EDIT: OR does this mean that all these shops are owned by the same person / Company?

[karma]

When the RRP is thumb sucked to a large degree, getting upset about a lost supposed 1% saving point 

 

R10 in this case. 

2 x this special = 1 x CO2 bomb. 

 

I get your point, that I am being pedantic. 

[Vetplant]

R10 in this case. 

2 x this special = 1 x CO2 bomb. 

 

I get your point, that I am being pedantic. 

Yes, true... but lets see any shop not be pedantic when you only give them R990 cash if the price on the till machine says R1000, I'm pretty sure they will also become pedantic about that 1%...

 

So we are right to be pedantic about false advertisement.

[Quagga]

Seems like these RRP are thumsucked....

 

Same product, same importer, same supplier =  correct?

EDIT:Spelling

 

 

[Grease_Monkey]

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.

No, of course I'm not saying it's okay to work out the % wrong - that's just plain deception. Just speaking to the concept as a whole.