I was just looking on a group discount site that sells just about everything...ipads, memberships, sunglasses, etc. Sorta like HSN.

They have an item listed...the posted 'strike-thru' MSRP is listed as $1,995. They're selling it for $75...96% off.

Does anybody in their right mind think that's a legit MSRP valuation? Does anybody think there's any manufacturer out there that legitimately sells their products at 4% of their value? I get 'fair price' is usually a 'range' but seriously...

Where's the 'truth in advertising?' (I know, rhetorical question).

Boss

Lol, it's like Vortex optics prices, the starting street price is 2/3s of "MSRP" and typically they are closers to 1/2 after you shop around.

You should check out the MSRP on Invicta watches. That company takes an inflated MSRP and elevates it into ludicrous territory. Especially if you are on a cruise....I feel for the people who buy one of those watches then later on realize the actual value of the watch.

quote:

Originally posted by stickman428:
You should check out the MSRP on Invicta watches. That company takes an inflated MSRP and elevates it into ludicrous territory. Especially if you are on a cruise....I feel for the people who buy one of those watches then later on realize the actual value of the watch.

I abhor that brand. Absolute trash. I worked with a guy that collected them. I never understood it. He had thousands of dollars in Invicta watches. I never understood why he didn’t just buy one or two good watches. Hell, he could have bought a used Rolex for what he spent on those.

I don’t know what the purpose of MSRPs is.
I suspect they're meant to be a basis for the real, reduced price; to satisfy people’s need to think they're getting a deal.
"I got a $1,995 watch for $75!"

I can usually find ANY item for 25% to 50% (or more) off the MSRP, with the help of the Internet.
e.g. Spyderco Delica 4, black - $120 MSRP on Spyderco site, $84 on Amazon et al, savings 30%.

I suspect that MSRP is intended to convince wholesalers and retailers to carry/buy the product in anticipation of realizing a huge markup, and not so much intended to convince the end user to pay it.

It's to sway consumers into buying it because it's "such a great deal" at the current price.

And the sad part it, is works. Perceived savings is a powerful motivator to consumers. There's a major aspect of marketing that revolves around price presentation and its psychological impact.

Similar to what makes people buy stuff they don't want/need "because it's on sale". But I saved 40%! No, dude... You spent an extra 60%.

Are you saying they're making up false MSRPs or the real MSRPs are outlandish? The former would be pretty easy to check.

quote:

Originally posted by Boss1:
I was just looking on a group discount site that sells just about everything...ipads, memberships, sunglasses, etc. Sorta like HSN.

They have an item listed...the posted 'strike-thru' MSRP is listed as $1,995. They're selling it for $75...96% off.

Does anybody in their right mind think that's a legit MSRP valuation? Does anybody think there's any manufacturer out there that legitimately sells their products at 4% of their value? I get 'fair price' is usually a 'range' but seriously...

Where's the 'truth in advertising?' (I know, rhetorical question).

Boss

Manufacturer Suggested Retail Price, is the price the manufacturer/brand would 'like' to see their product priced at, in order to maintain uniformity and alignment in the marketplace, and most importantly setting a margin percentage that's beneficial for all parties. Legally, once a dealer owns (takes delivery) that product, they can sell it at whatever price they want HOWEVER, if they're found to be in violation, the manufacturer/brand can stop shipping them product and suspend their account. If the dealer signed a MAP (Minimum Advertised Price) Agreement with the manufacturer, they not only need to abide by promotion periods and pricing, they also need to agree to advertising guidelines. Keep in mind, most advertising is paid for via co-op dollars/credits that manufactures provide to the dealer. Whatever brand is on the front, or, most prominent in the mailer/billboard, is the brand that ponied-up the biggest amount.

Whenever you see outlandish pricing on product that you know is priced much higher, its usually because that dealer is going out of business and clearing inventory, a dealer went out of business and sold their inventory for pennies to a 3rd party who in-turn is either selling it or, sold it to another business, who would've never been opened by said manufacturer. Or, that manufacturer dumped their inventory onto the market by selling to a Grey Marketer, which in-turn, has screwed market pricing and pissed-off loyal dealers but, they keep their inventory clean and their board/investors happy. You see this on Amazon, as the online marketplace can be out-of-control when it comes to price uniformity, thus brands have gotten much more stringent with stronger MAP agreements.

Some things like that are blatantly silly, but easily recognizable.

Check out boats - the relationship between MSRP and actual price is in no way similar to cars. Makes you wonder if some folks are unaware of that and blissfully pay at or near the MSRP on them.

quote:

They have an item listed...the posted 'strike-thru' MSRP is listed as $1,995. They're selling it for $75...96% off.

The possibility that this is a scam (you get a counterfeit item, or nothing is ever shipped at all) also exists.

quote:

Originally posted by Beancooker:

quote:

Originally posted by stickman428:
You should check out the MSRP on Invicta watches. That company takes an inflated MSRP and elevates it into ludicrous territory. Especially if you are on a cruise....I feel for the people who buy one of those watches then later on realize the actual value of the watch.

I abhor that brand. Absolute trash. I worked with a guy that collected them. I never understood it. He had thousands of dollars in Invicta watches. I never understood why he didn’t just buy one or two good watches. Hell, he could have bought a used Rolex for what he spent on those.

Head down with nose in corner wearing the Invicta cruise ship dunce cap.

It was my first cruise, I fell for the MSRP marked down and had no internet to validate price. I liked the watch, wear it some, but a lot less now that it turned into a $89 "treasure." I think I was parted from about $200. What a maroon. Lesson learned.