MI Pro

Interesting and not surprising article. But let me just say this...

One thing is for sure... the true value of a product is not considered often by many customers. Put an item on the market at £100 and someone will want something off for cash.

It's a game to see how less you can buy it for! Put the exact same item on the market for £10 and guess what, the same people will still want something off for cash! No surprises there then?

Dealers can be just as bad too. Give them a pedal that has an RRP of £120 and they often say... "Shame you didn't make it £99.95!" Errr.... why? It's worth £120, customers will pay that amount for it, so that's the price. Live with it!

At this time, there are too many products providing hardly any worthwhile returns. Copy Strats for £59!! Is it worth the time it costs to actually sell them... let alone the time to order, set up and do the accounting.

This industry needs to start thinking about selling up to a quality and not down to a price. Leave the c**p to the Internet traders who specialise in low end junk.

Don't be tempted to give away your margins. Stock only products from suppliers who support B&M retailers and stick to your guns... believe me IT WORKS. We NEVER sell below the price marked on or website and customers don't argue with that either (yes... we do have a dealer discount too).

Recently, we were faced with having to raise our prices by varying amounts, but in the end it made no difference to our sales. But then, our business is specialist cables which retailers cannot really cope with generally. Still, customers never complain about our prices.

There's no shame in trying for a 100% mark-up if you can get away with it... in fact, these days I'd say it's pretty much essential if anyone is serious about marketing their business properly.

Remember, my opening comments... the 'street price' is what we all in the MI business create!

Some good points Sir! Has anyone thought of what they are going to do when the Vat rate goes back up?