Mark-ups simply shocking

I think that the people who are bi**hing don't own or run a buisness. Shipping is a huge cost today and the stuff ain't free. And costs are raising expoentionally today with taxes , labor and all associated costs.
 
You know, when I buy from a store, I get the item right then & there. I don't have to wait for it to be shipped. I don't have to pay shipping costs & others such - and I get to see exactly what I'm buying before I pass over the bucks.
 
Montana Pete, It's called .....

....free enterprise.

Are you forced to shop at only one place?

Do you have a job?

Does the company that you work for make money?

If you can afford to work for less money, should you? By your logic, are you price gouging your employer?
 
I've been shocked by the kind of mark-ups I'm seeing at a local big-box sporting goods store. For one example, 7" varmint targets are priced at $7.99 per 12 at the local big-box store...
How stupid do they think we are?

Don't you see an opportunity here? If you can build a better product and sell it for less, you will never be out of work.

Concho Bill
 
gander mountain

i am a nursing student about ready to graduate. for about 3 years (2006-2009) i worked at a gander mountain in the guns department. i remember having to attend a mandatory meeting where they rolled out the "new" policy (back in 2007 or 8, can't remember). the new policy was that they were going to raise their prices and institute membership in the "gander gun owners club" as a tradeoff for the higher prices, which amounted to a bunch of nothing valuable AND higher prices on guns and everything else. they honestly said that they were going to raise their prices and everyone in the big box industry that they were competing with (cabelas, bass pro, etc) would follow and do the same. this makes absolutely no sense to me and i'm still scratching my head over that decision. apparently the free market idea of "whoever can deliver the goods for the lowest price wins" never came up in the conference room where this new policy decision was made. i still shop there just to look. i refuse to spend money there, their prices are ridiculous.
kstockfo
 
Whether it be for shooting, hunting or fishing...I try to do as much of my shopping at my local small busines shops as I can. Thats just my preference. If I do my buying there, they will be around longer...which is a good thing IMHO.
I like to have those shops around to be able to go to rather than popping up this or that site, punching a few keys and wait for UPS. I guess I'm just old fashioned that way...
Mark
 
Mark wrote, "Whether it be for shooting, hunting or fishing...I try to do as much of my shopping at my local small busines shops as I can. Thats just my preference. If I do my buying there, they will be around longer...which is a good thing IMHO. I like to have those shops around to be able to go to rather than popping up this or that site, punching a few keys and wait for UPS. I guess I'm just old fashioned that way..."

We have some small shops in my area and I buy from them quite often. In my earlier posting, I mentioned a fine gun and sporting goods counter at our local Ace hardware. I bought a gun-scope combination there last summer for around $800. So I do patronize the smaller shops.

I just bought some primers and targets from another smaller sporting goods store in the area. If these small stores cannot stock the variety of choices in the gun department, they will often order you a gun and get it in a week. Their prices are really pretty good.

I was kind of confused by two or three posters who seemed really angry, and accused some of us of "whining" because a few of these big-box stores like Gander Mountain have sky high prices. Like -- double their competitors. Like $7.99 for a packet of small-size targets. They made it sound sort of "unAmerican" if you don't suck this up and buy there. "Shut up and pay." I don't think so . . . Not me!

Actually, all of us exercise our free choice and buy where we feel welcome and get fair prices. For me this is any one of four or five smaller shops. I also DO buy things at Gander Mountain when I see items that -- in my judgment -- are halfway reasonable.

The whole point of my posting is that -- be careful!-- some of the pricing you are going to find out there will AMAZE you! My implication is -- shop around. That's the American right.
 
Actually, all of us exercise our free choice and buy where we feel welcome and get fair prices.

Exactly!

And evidently when we exercise our free choice by not buying from certain vendors because of prices or customer service, we are suddenly bitchers, complainers, and whiners.

Guilty as charged...........

I refuse to pay more for the same product.
 
Mark ups.

I guess Mail order is the way to go these days. not just for price either.
Sure most of the big srores have some powder but most of it is One pound cans.
Serious shooters need larger quantitys of powder , primers and cases.
Most of the local stores carry enough for the Hunter or small reloader , who loads on occasion.
Same with fire arms. Check shotgun news and other even the web for prices. have your choice sent to your favorite local small dealer and save some money . The little guys want the business and won't hurt you on the price. Here in central new york there is little inventory, and prices are high , I think because the products don't move very fast of the shelves.
Of course even in stores like gander or others there are anti gun people working there.
You know how they are"
 
Montana Pete
Don't worry about those few posters as I heard a rumor they work for AIG,Chase,Bank Of America and Enron but invested with Bernie Madoff and now they are a little bitter.
Waterboy
 
If you knew what the mark up on cars is you'd have a heart attack. Wood furniture is at least 400%. That is how they are able to stay in business. Just because they have a big mark up doesn't mean they make a big profit.

gt40
 
Mark ups.

Yes i have an Idea about Car Mak ups.
Gm said they had 38 hrs in building a car. that was one of the biggest lies i ever heard.
 
Yes i have an Idea about Car Mak ups.
Gm said they had 38 hrs in building a car. that was one of the biggest lies i ever heard.

The hours of labor on an assembly line are figured as "group piecework". Every individauls' time is figured into the piecework rate. An individual worker may only spend 30 seconds on the car, but multiply that times the # of workers on that line, plus pre-assembly time, foundry, steelworkers etc.
I'd say they probably have that figured pretty darn close.
 
Mark ups.

Interesting way to juggel figures I guess they call that creative accounting.
No way 38 hrs building. Ive seen them working on the line.
Many of the parts are generic to begin with and outsourced.
Maybe if you count the time the execs spend on the golf course too'
 
I'll buy powder / primers from a local gun shop to avoid the hazmat fee on small purchases. And things that I really need to SEE and HANDLE to know if I want them, I get there. He provides a service that I appreciate.

Most everything else comes mail order; more efficient use of our nation's resources. If you put all the workers in the most inefficient modes of retailing, all you end up with is a nation that wastes its human capital. Better to get those people out into some new and coming industry that will improve our standard of living in some way.
This can be "unfun" for the workers, but labor flexibility is one of the key advantages the USA normally (in the past, at least) enjoyed.
 
Interesting way to juggel figures I guess they call that creative accounting.
No way 38 hrs building. Ive seen them working on the line.
Many of the parts are generic to begin with and outsourced.
Maybe if you count the time the execs spend on the golf course too'

No Gerry...thats called timekeeping. Do you believe that because a car comes off the line every 38 seconds, thats all the time that it took to build? :)
 
Mark ups

Not going to get in a peeing match over the price of cars .
They are the biggest rip yet.
I guess if you count all of the phone calls and orders , shipping charges from asia, shipping charges from canada , shipping charges from mexico, brazil, and just about anyplace in the world it might come out to 38 hrs with the gulf course time LOL Its still a lie':D
 
If you knew what the mark up on cars is you'd have a heart attack. Wood furniture is at least 400%.
gt40

Some others are bearings and Vee belts. At the company I worked for we were able to buy various parts at company cost. I needed some belts for the tractor. At the local Cub dealer the cost for the mower drive belt was $21 and change, through work, $6.84! Bearings were about the same.

I can understand the dealer price. After all, they have all their operating costs to cover, labor, building, utilities, taxes, inventory,insurance, etc and etc. After all the expenses are accounted for they probably only making a fifty cents profit on that $21 dollar belt.

Bill
 
No one talks much about the "economics 101" consequences of very high mark-ups. I think of the guy who wrote here of an employee meeting where Gander Mountain announced a new policy of marking everything up. The writer of this post was bewildered, said he couldn't see that this was a good business plan.

Well, it isn't.

There's a trade-off between volume and mark-up. The higher your mark-up, compared to your competitors, the more your volume will be impacted.

If you cut your mark-up to the point you are barely profitable, you will get substantial increase of volume.

Put another way, it's profit versus revenue. If you cut your prices too far, you will push revenue way up but actually be losing money.

Most businessmen walk the line, trying to maintain or increase volume while sustaining a margin that permits a reasonable profit.

One one hand, a Wal-Mart is all about minimal profit PER ITEM but a huge volume. The opposite situation would be many jewelry stores out there, who buy a watch for $50 wholesale and sell it for $300 retail. Or, look at the international diamond market for crazy mark-ups over wholesale. Buy them in Brussels, sell them to mainstreet America.
 
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