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Forum nameStartup Stew
Topic subjectRE: Pricing
Topic URLhttps://www.businessownersideacafe.com/forums/dcboard.php?az=show_topic&forum=119&topic_id=573&mesg_id=627
627, RE: Pricing
Posted by carlar9, Wed May-16-07 02:16 AM
>Maria is partially correct. The MSRP is a
>"Suggested" price. No manufacturer can demand you
>use it. Technically once the merchandise is paid for I don't
>care if they push it off the end of the Santa Monica pier.
>
>Realities many times are different though. As a manufacturer I
>can't tell you what price to sell a product for, I can only
>tell you what you'll pay for it. But there is a caveat. You'll
>find many manufacturers if a customer is creating pricing
>problems for them will all of a sudden have a lot of
>backorders to that company.
>
>Pricing is always the most difficult thing for newbies to deal
>with. Too many times I see them spending years only trading
>dollars. It's a pretty safe bet that unless a product has
>unusually high margins you only have so much wiggle room
>because yours and your competitors costs are going to be very
>similar unless he's grown to the point where he has a payroll
>and you aren't there yet.
>Good luck
>Denny
>

Denny is totally correct. Some will tell you that legally they can tell you what price to charge but they suggest very strongly that you use the MSRP. Basically if you want to maintain a good business relationship with them you will use the MSRP.