Gold Class pricing adjustment 2019
It seems that Benchmade is no longer allowing dealers to list Gold Class knives at previous MAP (-15%), and has now updated pricing. MAP & MSRP are now one in the same. It appears though, that those who’ve pre-ordered a Gold Class knife this year (the 535-191 Bugout) are still eligible for the previous MAP.
(*Edit to clarify my first partially confusing/inaccurate post)
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yep this may put me over the edge on Benchmade.........to be continued
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Does this like iphone strategy?
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The question is what will be the actual price of the gold class knives. As long as they are still sold at the discounted price, i.e., 15% off, I don't care if they are advertised at MSRP. I do think it is marketing stupidity (who likes to pay full retail?), but I am more interested in what the actual cost will be.
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chip posted:The question is what will be the actual price of the gold class knives. As long as they are still sold at the discounted price, i.e., 15% off, I don't care if they are advertised at MSRP. I do think it is marketing stupidity (who likes to pay full retail?), but I am more interested in what the actual cost will be.
Not sure I understand this. There is no discounted price anymore, the new Bugout GC would cost you $750 to buy now, not the normal 15% off $750.
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To me, that reads MAP must match MSRP. Dealers should still be able to sell below that number, just can’t advertise a lower price. No?
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halflife78 posted:chip posted:
The question is what will be the actual price of the gold class knives. As long as they are still sold at the discounted price, i.e., 15% off, I don't care if they are advertised at MSRP. I do think it is marketing stupidity (who likes to pay full retail?), but I am more interested in what the actual cost will be.
Not sure I understand this. There is no discounted price anymore, the new Bugout GC would cost you $750 to buy now, not the normal 15% off $750.
MAP is an abbreviation for Minimum Advertised Price. Reading the statement in Marty’s post, they are saying a retailer cannot advertise below MSRP. It says nothing about the actual price the retailer can charge. The retailer can sell the $750 knife for $500, $750 or $1000. They just cannot advertise it below $750.
I still think it is marketing stupidity. Everyone likes to think they are getting a discount whether they are or are not. It is why every Oriental carpet store took $500 wholesale carpets priced them at $5000 and then offered them at 80% off. The purchaser thought “What a bargain!” And the store still made 100% profit.
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I’d like to believe that the best dealers out there will still be good to their best customers.
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chip posted:halflife78 posted:chip posted:
The question is what will be the actual price of the gold class knives. As long as they are still sold at the discounted price, i.e., 15% off, I don't care if they are advertised at MSRP. I do think it is marketing stupidity (who likes to pay full retail?), but I am more interested in what the actual cost will be.
Not sure I understand this. There is no discounted price anymore, the new Bugout GC would cost you $750 to buy now, not the normal 15% off $750.
MAP is an abbreviation for Minimum Advertised Price. Reading the statement in Marty’s post, they are saying a retailer cannot advertise below MSRP. It says nothing about the actual price the retailer can charge. The retailer can sell the $750 knife for $500, $750 or $1000. They just cannot advertise it below $750.
I still think it is marketing stupidity. Everyone likes to think they are getting a discount whether they are or are not. It is why every Oriental carpet store took $500 wholesale carpets priced them at $5000 and then offered them at 80% off. The purchaser thought “What a bargain!” And the store still made 100% profit.
So this is an interesting point I have brought up before. MAP is advertised price, you can walk into a BM dealer's shop and buy a knife at 30% off as long as it isn't advertised and it's not an issue. I know of 2 places near me that sell BM at 20-23% off and 30% off as a standard price, but they do 0 advertising on the brand.
I have a deal worked out, like Marty mentions above, where I get most of mine at roughly 30%-35% off on a regular basis. The newest GC though I am only getting at 26% due to this change, I think the cost to the dealers has went up also on GC cutting into their margin.
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I think you and I are on the same page, halflife. The issue I have with it is it ends up increasing the costs for those “not in the know” and puts the large retailers at a disadvantage for advertising, but actually increases their profits on each sale. I tend to be a free market sort of guy and really find price fixing, even when it is just restrictions on advertising, to be distasteful. Free speech!
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chip posted:
I think you and I are on the same page, halflife. The issue I have with it is it ends up increasing the costs for those “not in the know” and puts the large retailers at a disadvantage for advertising, but actually increases their profits on each sale. I tend to be a free market sort of guy and really find price fixing, even when it is just restrictions on advertising, to be distasteful. Free speech!
Actually, I don't believe it increases dealer profits based on what I heard on the backend. BM supposedly reduced the margin to the dealer, but forced the MAP up to account for it. So really BM is making more gross profit here while the dealer is making the same assuming MAP and the customer gets screwed.
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halflife78 posted:chip posted:I think you and I are on the same page, halflife. The issue I have with it is it ends up increasing the costs for those “not in the know” and puts the large retailers at a disadvantage for advertising, but actually increases their profits on each sale. I tend to be a free market sort of guy and really find price fixing, even when it is just restrictions on advertising, to be distasteful. Free speech!
Actually, I don't believe it increases dealer profits based on what I heard on the backend. BM supposedly reduced the margin to the dealer, but forced the MAP up to account for it. So really BM is making more gross profit here while the dealer is making the same assuming MAP and the customer gets screwed.
Where on the back end did you hear that? Just curious!
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I know that alot of manufacturers are going to enforced pricing to combat basement retailers and Amazon market flooders that drive down value.
I know of several manufacturers that now tie their warranties to the protected pricing. If you cannot produce a receipt that shows you paid M.A.P. or higher then you are considered a wholesaler and you do not enjoy the warranty program set forth from the manufacturer and must therefore seek warranty compensation from the reseller that sold outside of the agreement. Companies such as Thule, Yakima, Rigid just to name a few. It was a topic of much discussion at S.E.M.A. this year.
Also, this.
"• Uphold the premium value of Benchmade on Amazon platform, ensuring maximum average prices"
https://portland.craigslist.or...ting/6801044942.html
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Prices to be jacked up to pay for complimentary gun destruction.
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