Why are all dealer prices the same??

joecanadian

Tenderfoot
Dec 28, 2009
7
0
Why is it,that all dealer prices on the web are exactly the same? On E-bay or any where on the net,there is no difference in priceing.Sure there's a suggested retail price,however,c'mon guys..we live in a free market economy.Undercut,have sales,have specials for God's sake.I've been looking for a Tesoro coil,and all of the dealers in Canada sell for the same price,the full price,and not a penny less and it's the same in the U.S.
What ever happened to the idea of "competitive pricing?"
>:(
 

vayank54

Silver Member
Oct 11, 2009
2,737
20
Northern VA
Detector(s) used
Whites Blue Gray & Tesoro Cibola
I don't know about all but, with some companies ,the dealer has to charge a certain price or they will lose their franchise. I know it was that way with at least one metal detector company. There are some dealers in local shops that, if they know a person well enough, will sometimes give a big discount on some items.
 

Treasure_Hunter

Administrator
Staff member
Jul 27, 2006
48,433
54,826
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The major manufactors will not let them sell below a set price, if they do they lose the franchise....The freebies the stores give with each sale are provided by the manufactors...
 

paratrooper

Sr. Member
Sep 20, 2004
388
46
Kingman AZ
Usually the advertised prices fit into factory mandated guidelines . The dealer however , many times will offer a slew of extras that will offset the price greatly . The internet is a world of it's own .
 

Treasure_Hunter

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paratrooper said:
Usually the advertised prices fit into factory mandated guidelines . The dealer however , many times will offer a slew of extras that will offset the price greatly . The internet is a world of it's own .

Most times the freebies are not worth much at all. I have bought 2 new detectors, One Whites BHID, and a Minelab Sov GT, none of the items given as free were really worth anything, although they make out like they are.
 

Tin Nugget

Bronze Member
Jan 11, 2007
1,245
13
Mesquite Texas
Detector(s) used
MXT F2
On line they seem to be the same. At a local shop can be a different story. My dealer sells and has in stock a complete line of Minelab, Whites, Garrett, Tesoro and Fisher. He has been in business 36 years and has a hugh mail order business but no website and not interested in one. He has consistently lower prices than the big on line sites and he will deal on multiple items etc.
 

Treasure_Hunter

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On line or off line, if a manufacturer finds a dealer selling below a set price they can pull his franchise.....
 

bazinga

Silver Member
Oct 31, 2005
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If the manufacturers were allowed to set their own prices, the small ones would all be put out of business very quickly. Sure, there are a few buyers out there that will patronize the local dealer. But the vast majority will shop based on price and order from Kellyco. Why Kellyco? Because their volume is so large that they can buy for less from the manuf. and sell for less because they can handle less profit per item than a guy who sells 50 detectors per month out of his little shop. They would crash the prices to the point where the local guy would be down to like $12 profit per detector and have to close shop.

Then when there are no local shops, Kellyco would raise their price back up to retail and still get the same volume because there is little to no competition.
 

oneeye

Hero Member
Aug 16, 2008
564
4
Michigan's Left Coast
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Whites MXT, Whites 6000 Di Pro, Garret Grand Master Hunter, Tesoro Tejon, Fisher 1265X
Treasure_Hunter said:
On line or off line, if a manufacturer finds a dealer selling below a set price they can pull his franchise.....
That is actually called "price fixing". If we actually had a court system that would do its job, this would have ended a long time ago.
Dan
 

OP
OP
J

joecanadian

Tenderfoot
Dec 28, 2009
7
0
bscofield6 said:
If the manufacturers were allowed to set their own prices, the small ones would all be put out of business very quickly. Sure, there are a few buyers out there that will patronize the local dealer. But the vast majority will shop based on price and order from Kellyco. Why Kellyco? Because their volume is so large that they can buy for less from the manuf. and sell for less because they can handle less profit per item than a guy who sells 50 detectors per month out of his little shop. They would crash the prices to the point where the local guy would be down to like $12 profit per detector and have to close shop.

Then when there are no local shops, Kellyco would raise their price back up to retail and still get the same volume because there is little to no competition.

Even with compnies such as the one you mentioned,I don't see a diff in their price,vs a mom and pop operation....
 

OP
OP
J

joecanadian

Tenderfoot
Dec 28, 2009
7
0
oneeye said:
Treasure_Hunter said:
On line or off line, if a manufacturer finds a dealer selling below a set price they can pull his franchise.....
That is actually called "price fixing". If we actually had a court system that would do its job, this would have ended a long time ago.
Dan


Amen bro! :icon_thumright:
 

paratrooper

Sr. Member
Sep 20, 2004
388
46
Kingman AZ
oneeye said:
Treasure_Hunter said:
On line or off line, if a manufacturer finds a dealer selling below a set price they can pull his franchise.....
That is actually called "price fixing". If we actually had a court system that would do its job, this would have ended a long time ago.
Dan

Price fixing is when 2 or more different companies get together to use this as a control . This example of dealers is just a requirement dictated by the manufacturer . Another example of something being legal but not right .
 

Treasure_Hunter

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paratrooper said:
oneeye said:
Treasure_Hunter said:
On line or off line, if a manufacturer finds a dealer selling below a set price they can pull his franchise.....
That is actually called "price fixing". If we actually had a court system that would do its job, this would have ended a long time ago.
Dan

Price fixing is when 2 or more different companies get together to use this as a control . This example of dealers is just a requirement dictated by the manufacturer . Another example of something being legal but not right .

The dealers have agreed to the provision in the franchise not to sell below a set price, in order to get the franchise...... It is a business contract between the dealer and the manufacturer... Break the terms of the contract and lose the right to sell....
 

OP
OP
J

joecanadian

Tenderfoot
Dec 28, 2009
7
0
Treasure_Hunter said:
paratrooper said:
oneeye said:
Treasure_Hunter said:
On line or off line, if a manufacturer finds a dealer selling below a set price they can pull his franchise.....
That is actually called "price fixing". If we actually had a court system that would do its job, this would have ended a long time ago.
Dan

Price fixing is when 2 or more different companies get together to use this as a control . This example of dealers is just a requirement dictated by the manufacturer . Another example of something being legal but not right .

The dealers have agreed to the provision in the franchise not to sell below a set price, in order to get the franchise...... It is a business contract between the dealer and the manufacturer... Break the terms of the contract and lose the right to sell....


This form of "business," still doesn't pass the "smell test..." If you know what i mean.
What do the manufactures have to lose,if their products are sold below the suggested manufacturers list price?
Some of these parts and machines are damn expensive when you factor in all of the costs,including shipping which would be a forum on it's own.Too bad...especially those with limited funds who want to break into the hobby,and want to buy new.... :(
 

Treasure_Hunter

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joecanadian said:
Treasure_Hunter said:
paratrooper said:
oneeye said:
Treasure_Hunter said:
On line or off line, if a manufacturer finds a dealer selling below a set price they can pull his franchise.....
That is actually called "price fixing". If we actually had a court system that would do its job, this would have ended a long time ago.
Dan

Price fixing is when 2 or more different companies get together to use this as a control . This example of dealers is just a requirement dictated by the manufacturer . Another example of something being legal but not right .

The dealers have agreed to the provision in the franchise not to sell below a set price, in order to get the franchise...... It is a business contract between the dealer and the manufacturer... Break the terms of the contract and lose the right to sell....


This form of "business," still doesn't pass the "smell test..." If you know what i mean.
What do the manufactures have to lose,if their products are sold below the suggested manufacturers list price?
Some of these parts and machines are damn expensive when you factor in all of the costs,including shipping which would be a forum on it's own.Too bad...especially those with limited funds who want to break into the hobby,and want to buy new.... :(

I understand what you mean, we may not like it, but it is still legal, and it is done by all the major manufacturers....
 

paratrooper

Sr. Member
Sep 20, 2004
388
46
Kingman AZ
Just a little "something". The price advertised must adhere to manuf's dictate . BUT when speaking face to face lots of things can happen .... if you get my drift .
 

jeff of pa

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Price Fixing

& I Believe if a company can get a Thousand Dollar Detector
for $600.00 they should be alowed to sell
it for $650 If they are happy with that.

They could Sell a Thousand of them in no time
& Ordar a Thousand more.

Survival of the Fittest :wink:
 

scubaozzy

Jr. Member
Aug 20, 2007
92
7
Tavares,FL.
Detector(s) used
minelab excal.
Primary Interest:
Shipwrecks
it is the manufactures way of "legal" price fixing. dealers like it that way also cause they use the excuse and policy of the manufacture to not be able to give the customer a discount on the product. manufactures/dealers can say/argue all they want about this policy but it guarantees the dealer a set profit...
 

scubaozzy

Jr. Member
Aug 20, 2007
92
7
Tavares,FL.
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minelab excal.
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oneeye said:
Treasure_Hunter said:
On line or off line, if a manufacturer finds a dealer selling below a set price they can pull his franchise.....
That is actually called "price fixing". If we actually had a court system that would do its job, this would have ended a long time ago.
Dan
i agree 100%
 

bazinga

Silver Member
Oct 31, 2005
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joecanadian said:
bscofield6 said:
If the manufacturers were allowed to set their own prices, the small ones would all be put out of business very quickly. Sure, there are a few buyers out there that will patronize the local dealer. But the vast majority will shop based on price and order from Kellyco. Why Kellyco? Because their volume is so large that they can buy for less from the manuf. and sell for less because they can handle less profit per item than a guy who sells 50 detectors per month out of his little shop. They would crash the prices to the point where the local guy would be down to like $12 profit per detector and have to close shop.

Then when there are no local shops, Kellyco would raise their price back up to retail and still get the same volume because there is little to no competition.

Even with compnies such as the one you mentioned,I don't see a diff in their price,vs a mom and pop operation....

Mom and pop would not be able to compete.

Mom/pop can buy 5 of a detector for $600 and sell it for $1000.

Kellyco can buy 500 of this same detector for $450 each and sell it for $1000.

Mom/pop could undercut kellyco to get their sales. Then kellyco follows. Eventually, kellyco is pricing their machines at $600. At this price, mom and pop cannot break even. Mom and pop goes out of business.
 

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