Even if they buy them from CCC (and Ed is right about that) at list price,
which they don't, 35% is a bit high for profit. I have had two jobs that
have given me the experience to make that statement. One was for a
pioneering discount broker where list price on expensive radios were marked
up 20%, and 10 years as a Product Manger for AT&T Computer systems where we
had to set prices to meet competition.
A pricing policy like that seems to reflect an attitude that I question.
There is no such thing as list price, but if they want happy customers there
should be that price differential. It is the usual customer beware. Moss has
a good reputation, but the prices they want for some items that are
available elsewhere are laughable. Why buy from them and pay so much more.
How does the customer feel if they buy something that costs them dollars
more ($36 almost anywhere vs. $72 for the same fuel pump, $150 for a
retractable 3 point seat belt vs. $90.). We aren't talking quality
differences here, we are talking the exact same item.
Just wanted to warn people to do some careful comparison shopping.
Jack
> ----------
> From: Hal Rogers[SMTP:hdrsons@iamerica.net]
> Reply To: hdrsons@iamerica.net
> Sent: Friday, June 12, 1998 9:27 AM
> To: Feldman, Jack (Jack)
> Cc: 'mgs@autox.team.net'; 'healeys@autox.team.net'
> Subject: Re: Why Does Moss Do That
>
> I guess that the term "rip off" is a little over the edge in my opinion.
> Pricing differences are just a natural course of business. There are
> plenty of reputable companies (including Moss..who incidentally is in
> some ways largely responsible in the beginning for the good supply and
> reproduction of spares which were not available anywhere else in the
> days before British Heritage, etc, etc.)
>
> Moss pricing could reflect any number of reasons. Perhaps they don't buy
> the model direct from the manufacturer..they may purchase from a
> distributor which raises their cost. They may also hold a higher profit
> margin to support their overall philosophy of having parts reproduced
> that aren't available. Contrary to opinion, just because a company is
> like Moss is "big" by our standards doesn't mean they are big model
> sellers. Anyway you look at it, they are simply offering a product at a
> price they feel fits with their overall image. There will always be
> companies like Triple C who also come into the market and do an
> excellent job with certain niche products. Perhaps Phil (the owner, I do
> know him) at Triple C has a lower profit margin and doesn't have to
> answer to stockholders and makes a living to his liking. Perhaps he buys
> direct because he is a specialist in models. All sorts of scenarios come
> to mind. Short answer: That's competition. Isn't it wonderful!
>
> Regards,
> Hal Rogers
> H.D. Rogers & Sons
> Import Auto Specialists
> 3418 Barksdale Blvd.
> Bossier City LA 71112 USA
> (318) 742-3651 phone (318) 742-5044 fax
> http://www.hdrogers.com
>
|