Cesar wrote:

I have kept quiet so far, but your statement above about volume discounts to the larger stores brings up a couple of discussions I have had with my local photo store owner.
He has been told time and again from a major camera manufacturer - who shall remain nameless - that the price he is charged for a camera body is the same that they charge the large stores i.e. B&H, Ritz, ...
He even showed me the invoices, and we cannot understand how such large companies can sell all those cameras for a lot less than what the local shop is charged. And, I am not talking about a $50 difference.


Believing there are pricing differences,

César

At one time I worked for a Membership Warehouse business similar to Costco. I designed a Rebates Receivable system which tracked purchases and rebate agreements the comany had negotiated with its vendors. When certain quotas were reached, a rebate was 'earned'.


What I'm suggesting is, the invoice may show the the same price being charged to large and small businesses alike. Behind the scenes, the larger businesses may receive cash back. Speculation, but I've seen it first hand. The biggest rebates given were on purchases such as automobile tires, IIRC. In any case the system tracked rebates of over $2 million annually. Not a large number, but nothing to sneeze at either in 1987.

Tom C.




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