Ok never really understood this...

FWAmie

DTVUSA Member
#1
Ok lets say that a play station 3 or some other device is 300$ by the product site that sells it. But you go to places like walmart or amazon and the price is much cheaper, now why is that? Does that have to do with the quality of the product or something else?
 
#2
no each retailer pays a low wholesale price to the retailer and then the retailer marks it up according to how much profit they hope t make. It's not a different product it simply is a different profit margin
 

Lily13

DTVUSA Member
#3
Maybe those companies are so big that they can afford earning less on a single device because they know they will sell a lot of it? I don't really know how Amazon could change the product's quality, the price usually just comes down to the model you buy, like how many GB it has or if it has 3g
 
#4
Yeah, if you haven't read the book that came out a number of years ago, the Wallmart Effect (I think that's the title), its definitely worth a read to see how the company makes billions on undercutting their competitor's profit margins and so forth. The manufacturer will have a recommended retail price, and may or may not restrict other businesses ability to undercut this above what they pay for the product. Kind of like cell phone companies giving you that 500 dollar rebate on a phone to get your business for 2+ years!
 
#6
Wal-Mart does that quite a bit. I've bought electronics from Wal-Mart over the years and have never had issues for the most part. I can understand why some consumers would be concerned however.
 
#8
I believe the companies that make these devices charge so much because quality and time. Basically Sony puts a lot of time into making sure the PlayStation game systems are high quality and that they will be pleased by the customers. Companies like that try to give their customers what they want. Honestly there is a lot of effort and hard work put into making the systems. Don't forget their employees also have to be paid for constructing the system. See places like WalMart and KMart have nothing to do with the game system being made, so why should they be able to charge as much as the actual company whom actually put the system together. It wouldn't be right.
 

RockU

DTVUSA Member
#9
no each retailer pays a low wholesale price to the retailer and then the retailer marks it up according to how much profit they hope t make. It's not a different product it simply is a different profit margin
Exactly, that is the whole point of buying and selling these pricey items. The higher the price, the higher the profit margin for each sale. For lower price items like phone accessories, the profit margin is extremely low.
 

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