In a message dated 1/4/01 9:16:17 PM Central Standard Time, staytuned@idirect.com writes: << Isn't the MSRP usually double the dealer cost? Thanks. > >Terry Farrell How we used to wish it was! It's more like 1.66 of wholesale. If it's double, I'll get back into retail real quick. John Lillico >> Just as there is a MSRP for customers, there is also a MSWP for dealers. The MSRP is twice the normal whole sale cost. But manufacturers have specials and deals, just like retailers do. For instance, if the dealer buys a piano, COD, the dealer can get the piano for a 3% discount. If he buys more than 3 at a time, he gets a 5% discount. If he buys more than 10 at a time he gets a 10% discount. And if he buys a whole container, COD, he gets an even greater discount. If you see pattern here, you are right. The small dealer, (like me), can only buy a few pianos at a time, and we have to floor plan. So no discount, and "full" wholesale. But big dealer, with lots of capital, can buy a whole container at a time, and get the same merchandise for almost 25% less. So when a big dealer is having a sale, they can discount the pianos to the public at almost the same price the small dealer has to pay wholesale, and still make a profit. Another case of the rich getting richer, and the poor just barely getting by. Willem
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