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How Amazon keeps costs low...
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<blockquote data-quote="Relique du Madde" data-source="post: 5689727" data-attributes="member: 42169"><p>Well considering that retail prices are usually marked up so that the business receives at least 25% profit from selling the item, the 30% discount can be set from an arbitrary "This price is the most someone would buy this item at in order to maximize your profit according to our research" mark aka the suggested retail price.</p><p></p><p>Those large discounts often result from "This product isn't selling and we need to get rid of it so let's mark it at 30% discount an hope no one notices that the suggested retail price and the current sale price is the same as it was last week." People like discount signs so they will buy even if the 30% discount means that the shop would receive 50% profit instead of 60%.</p><p></p><p>If that doesn't work, the item is nearing an expiration date, is about to be obsolete by iProduct v +1, or was collecting dust too long, then the business may actually be forced to actually lower the price down to the unit price. If they go below that then, hopefully they received enough profit from something else to cover the amount they lost with the product.</p></blockquote><p></p>
[QUOTE="Relique du Madde, post: 5689727, member: 42169"] Well considering that retail prices are usually marked up so that the business receives at least 25% profit from selling the item, the 30% discount can be set from an arbitrary "This price is the most someone would buy this item at in order to maximize your profit according to our research" mark aka the suggested retail price. Those large discounts often result from "This product isn't selling and we need to get rid of it so let's mark it at 30% discount an hope no one notices that the suggested retail price and the current sale price is the same as it was last week." People like discount signs so they will buy even if the 30% discount means that the shop would receive 50% profit instead of 60%. If that doesn't work, the item is nearing an expiration date, is about to be obsolete by iProduct v +1, or was collecting dust too long, then the business may actually be forced to actually lower the price down to the unit price. If they go below that then, hopefully they received enough profit from something else to cover the amount they lost with the product. [/QUOTE]
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