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Topic: What's the deal with discounts?

  1. #1

    What\'s the deal with discounts?

    Here\'s something I don\'t understand: How can a retailer sell a library for less than what the maker sells it for? Last week, I bought the excellent Garritan Strings (AKAI) from the www.garritan.com website for 299 $. Today, I find the same library for sale at audiomidi.com for 249. Mmmm. I always thought that it was cheaper if you bought directly from the manufacturer instead of the retailer. What gives?

    PS: I know that this is only one example. Many software companies do the same thing, but I\'ve never understood why they get away with it. Do they have more overhead?

  2. #2

    Re: What\'s the deal with discounts?

    Hi Ned Bouhalassa:

    Garritan (and myself too) have to sell at the full MSRP (suggested retail price) on our websites since we also sell to distributors and retailers.


  3. #3

    Re: What\'s the deal with discounts?

    Yes Thomas, but you\'re not saying that you charge a retailer or a distributor the same price as a user, right? Oh, but maybe you\'re saying that a given retailer will simply link your purchase area in their website, and so you have to reflect the MSRP? I still feel that something is wrong with this picture...

  4. #4

    Re: What\'s the deal with discounts?

    No Ned, what Scarbee is saying is that you (the developer) can\'t willfully compete with your distributors or else they won\'t carry your product! They want an incentive to be able to sell your product and hence they want to make sure that you\'re not going to underbid them.

    This is a common practice in any business.

    If you have a product with a MSRP of $200, you can sell it to a distributor for say $100. The distributor can then price it anywhere from $101 to $200 depending how much profit margin they want to see. If they feel that a lower price will move the product then they will price it at say $150. There is such a thing as the lowest advertised price which the developer can impose on the distributor so as to not de-value the product too much.

    If it makes you feel any better, but buying a product from the developer, you are effectively contributing the most amount of $ to the person that made the product. When you buy something from a retailer, you will save money but the developer will get a considerably smaller amount for their hard work!

  5. #5
    Join Date
    Oct 2000
    Orcas Island

    Re: What\'s the deal with discounts?


    It is the policy of GOS that no reseller can have a lower advertised priced than the retail price. This is for the betterment of the customer, the developer and other resellers. AudioMIDI was to have a MAP (Minimum Advertised Price) of the $299 MSRP. AudioMIDI made a mistake in advertising for $249 and it is now corrected on their website.

    Gary Garritan

  6. #6

    Re: What\'s the deal with discounts?

    So, at the end of the day, I\'ve learned quite a bit:

    a) it _is_ cheaper to buy from the manufacturer, but only when we\'re talking shoes, leather, and furniture [img]images/icons/grin.gif[/img]

    b) always look around before buying

    c) don\'t feel bad about paying a bit more if all of it is going into the manufacturer/programming team\'s pocket

    d) fifty bucks, schmifty bucks - those strings sound f*cken great!!!! [img]images/icons/cool.gif[/img]

  7. #7

    Re: What\'s the deal with discounts?

    I am sure that Gary and Scarbee already know this, but...the Minimum Advertised Price is exactly what it means minimum ADVERTISED price.

    That\'s why sometimes on Musician\'s Friend and other catalogs you will see the infamous \"Call for Price\" It\'s not that they\'re dying to talk to new people, it\'s just that they can decide to offer a product for less money but they\'re not allowed to \"advertise it\"

    I still say that buying directly from the manufacturer is the best way to make sure that your money is going directly to the guy responsible for creating the product that you guys love so much.

    Even if you can get a discounted price elsewhere, I would still consider calling the developer and see if they can match up the price (or offer some other incentive). The developer will undoubtedly be happy to make a direct sale and you might end up with a bargain! [img]images/icons/grin.gif[/img]

  8. #8

    Re: What\'s the deal with discounts?


  9. #9

    Re: What\'s the deal with discounts?

    I\'ve bought product direct from manufacturers before, when they are the only ones who have it in stock. And then I\'ll ask them to match the advertised price of their vendors, no problem there either. Sure they may not mention it publicly, but if you have money to spend don\'t be afraid to talk to the vendor/manufacturer.

    \"Can you give me a discount?\"

    \"Can you match what my local Guitar Center sells if for?\"

    \"$1000.00?? I\'ll buy it right now for $850.00!\" (I used that line when I purchased my voice prism. lol..)

    Oh yah, always tell them you are active in public forums, seems they instantly treat you better. [img]images/icons/smile.gif[/img]

  10. #10

    Re: What\'s the deal with discounts?

    I\'m not a lawyer but as I recall there is a problem with manufacturers forcing prices on dealers and retailers. The manufacturer can suggest a retail price. However, if prices at all outlets are fixed (with the threat of action against sellers that deviate), it is considered collusion and price fixing. There are both state and federal laws protecting both seller and consumer against such activity. Even Apple Computer has to be careful.

    Perhaps there is someone in the forum that can shed some light on this subject.


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