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Old 10-25-07 | 09:17 AM
  #14  
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Psimet2001
I eat carbide.
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Joined: Jan 2006
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From: Elgin, IL

Bikes: Lots. Chapter2, Van Dessel, Giant, Trek, etc Dealers for BMC, Chapter2

Originally Posted by bluenote157
on another note.. i get email updates from both... like every other day and its basically the same thing..
20% of orders of $100, 10% off orders of 50%, shoe sale only today, trainer sale only today, etc.. Makes me almost want to think that we are all paying an over excess of 20% markup. Its almsot like going to your local grocery store and at the check out they ask you if you have a Albertsons, Shaws, Safeway, etc card so that they could give you the discount.
It's part marketing, and part skirting distribution pricing agreements. Mostly marketing. Something to consider though is that they always have a sale, and are always offering a deal, but the stated "normal" or "Regular" price on an item adheres to any minimum nationally advertized price agreement they have with the manufacturer.

Instead of getting in a anti-trust battle over being offered lower prices for the same items in the same competing markets as mom and pops (hello A&P/ Robinson Act) they offer the items at the same pricing, but constantly offer a sale on the specific item, or offer a % off, allowing them to give generalized back end margin instead of getting into an arguement with the manufacturer or local mom and pop (where they have retail locations) over "unfair" competition.
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