Lake Country cyan euro-foam pads?

[David Fermani]

Makes sense to me. You'd figure they'd know that, but because this competitor pushed their buttons they pulled the trigger to pacify them. Have you talked to Eric about this? He always seems to make a consious effort to insure his product is displayed in a positve light.

 

[garbageman918]

Why the hell can't you sell these products for whatever price you want? As long as the manufacturer is selling product and you're turning your inventory who cares? Even if you were selling these pads for below cost just to bring in traffic so people can purchase other products it shouldn't matter. Way too many jealous retailers out there trying to keep their thumb on competition by complaining for no reason.

You’ll notice that I only have a few posts, and as of just recently but no, I’m not brand spanking new nor some hidden ‘character’ made just for this post. I don’t own a retail business (but do own a staffing/headhunting company in LA and had a retail license way back in high school). I’m usually a lurker type but I had to chime in on this.



As annoying as it seems, pricing protection does actually make some sense in the world of business and I’ll offer a few points to consider:



1) If internet store A is charging 10% less than brick and mortar (B&M) store B, who are you LIKELY going to buy from?

2) If B&M store B can’t make a profit on a product, will they continue to sell it?

3) If the manufacturer only has a few online channels to sell their product, will it get the amount of branding/representation that they want? (are the products being sold properly)

4) If a manufacturer requires pricing protection but a) price is too high b) product sucks, will customers buy them? Will stores continue to carry/represent them if they're not able to make $?



So at the end of the day, pricing protection protects/builds the stores/salesmen and the manufacturer’s reputation. If the pricing of their products exceeds the perceived customer value of customers then sales will simply drop (good old supply and demand)



You'll often find 'bargains' of products where a store clears out the inventory of a 'dropped line' where they don't bother adhering to pricing anymore. There are other times/reasons for price fluctuations like seasonality, regionality, manufacturer rebates, promotions, etc., but we'll ignore those for the sake of this argument.



That being said, I need to stock up on some pads, so if there’s someone in Los Angeles (preferably southbay) that is local and can cut me a cash deal on some pads, PM me!

 

[lee@glosshaus]

I'm not sure what pricing you're getting, but $5 a pad is pretty close to cost. Many companies have a MAP (Minimum Advertised Price). I've never been made aware of one by Lake Country, but I can easily see how selling the pads for $5 is detrimental to their market and other resellers of their products. Frankly, at $8-$10 a pad, most little guys like me aren't driving a new Porsche. We use that margin to pays costs of boxes and packaging, e-commerce websites, credit card processing fees, selling fees, etc. I always marvel how many hands are out to take a cut of the markup on any given product. Sales on pads, microfiber, etc. are a way for me to offer good value and products to my customers and keep a little money coming in.



Net: I can't imagine you thought selling for them for $5 was a market price when people are selling them for $8.50 each in multi-pad orders.



I agree they are great pads. I've got a dozen each of the Cyan and Tangerine sitting in my garage waiting for my next project...

 

[Joe in PA]

The only ones who benefit from a set min resale price is the manufacturer and the resellers. Customers, the ones paying for the products are the ones who get screwed. As justified as those on the selling side of the fence are in feeling it is a "good" thing, those on the buying end have just as much reason to feel it sucks. A free market system is a wonderful thing for the consumer but only if it is indeed free.

 

[imported_WCD]

Eric is very nice. I emailed him an apology and explained that without a suggested price guideline, I just put it out there on Autopia...my store price was never $5, but I thought it would move product since I was going to buy a few cases. My biggest point is that for ONE mistake, it seems a bit "rough" to get a new pricing schedule. I have had an account with them for about 10 years- I'm not a big reseller like others, but I'm not a problem child either.



My intention was to not cheapen the product, but I can certainly see how it does happen when you sell for less than the competition. Like I stated, I'll stick to our towels because I have total control and therefore, no one can tell me how to price them or complain.



As for my retail site, I can use what I have for detailing, or give it away! :0



Rob

 

[Bunky]

In a true free market, you do not regulate businesses on how they sell products. The consumer is not protected, guaranteed the lowest price, or much of anything since the market (competition from other pad suppliers) would supposedly take care of it in theory.



The idea is someone could go into the pad business and compete with their own pricing.

 

[derek37]

I would like to apologize for offering the cyan pads for $5 each last week. I have been selling LC pads for about 10 years and in that time was never told a formula for mark up--some things are 2x cost and others are not. I was offering these pads for about $3 less than what they should have been.



A person on this forum, another distributor, apparently called LC and told them I was undercutting the market. As of today, my pricing was cut so that I can not really make any profit on any LC product.



I am saddened that the person making the call did not feel comfortable sending me a PM and informing me of the mistake before calling LC and effectively, getting me "cut" from the dist. pricelist.



I did apologize to LC, but am still being kept at bay with a new "price list" that will not allow me to make more than small cut, if that.



LC is a solid product and I'm sorry that I will not be offering anything for sale- other than what is in stock.



I wish to apologize again to this forum and site for making the mistake.



Rob Regan

Geez Rob, that really sucks, I mean, seriously. I understand LC needs to evaluate the situation but damn. Just want to say I enjoy your posts and your integrity as well as your business sense. You've always seemed to specialize in what you offer, maybe the Surbuf brand might be a good fit?



Derek