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Dear Duane,
My local dealer is saying I have to pay what the price book says for the T&C program. I was hoping to get 50% off of the price book just like I can for the regular leathers. Can I expect that?
Oddly enough, they have the same price for T&C and GR2 since they are offering 40% off of MSRP on regular leathers but full price on T&C.
Thanks so much for such an educational forum! You single-handedly made me into a H&M fan. Sadly, my local dealer knows very little in comparison.
Bob
HA! Well Bob, there is no MSRP on Town and Country, we all get a dealer net (wholesale) brochure and that's it! So whatever they are making up is just exactly that. Smoke and Mirrors, et al. Its up to each dealer to set his own pricing, all I do is take my T&C price book and add a percentage factor to it and that's the price I sell for. I don't bother to end things in '9's and the like so I have oddball prices that might end in a "1". I keep things simple and fast and don't vary my prices unless I get a sale period from the maker of the pieces. Retail is all about margins and they are simply a percentage added to what the wholesale price would be. I'm often amused at what markup some people tell me I should be using (either too high or too low) but at then end of the year if you don't net 18 % out of your store then you won't be in business very long - so all my pricing is geared to that number.
Let's use a hypothetical example so you can get some understanding of how H&M pricing works. This is just to show you percentages and I'm using a typical price structure that might be on a recliner.
Dealer net on a T&C item is $ 1,000. I will sell in my store at cost x 1.55 % = $ 1,550
Dealer net on the same piece in GR 2 is $ $ 1,470. MSRP then becomes $ 4,410 (3x dealer net). At 40% off that would be $ 2,646. In my store that piece would be net x 1.55 for local buys so it would become $ 2,279.
So, as you can see in the above example there can be a huge difference between T&C and regular pricing and it seems like they are not giving you the advantage of the T&C price break they are getting. But that's up to them, they run their store and their pricing as they see fit to do. I run different percentages for distance area buys, but you have to pay the delivery fees on them but it comes out pretty close to being the same. Credit cards cost 2 % to process so I discount that if asked and someone wants to pay by cash/check.
Hope that helps explain it some.
That is so helpful and enlightening! Thanks for taking the time!