One of the worst culprits when it comes to rebates.This is why they screw suppliers so much as they need 2 x profit.
This is a follow up to the power chord post the other day and have been doing some homework. I managed to find the agents in South Africa for Lenovo after 3 phone calls. They are only about a 30 minute drive away and have the part in stock.
What hit me was the price and was what I had in mind originally. The price quoted this morning is a little less than $50 which I thought was reasonable. Compare that to the retailer supplier that quoted $220 last week. I don't mind profit, but that is a little excessive in my book. A 440 percent mark up on a simple item that they can make 30 or 40 percent off from doing nothing.
These businesses are making a killing on peoples ignorance and stupidity. I know they have overheads and hidden costs,but surely if you are competitive you will be even busier.This chain has a monopoly on computer parts and accessories in my region and I for one won't be going back again except to claim my credit.
When I worked in retail I used to always divide the price by 3 to get to the cost of an item,sometimes four if it is electronic. This is not far off normally as even on clearance sales they make money. When we look at the rebates etc when a store sells something at cost they have already made the money.
I know of one company that has a rebate department and it is the most profitable section of their entire company. Everything landed has rebates added on as a cost and it is between 12 and 20 percent normally. This is the reason for over inflated prices in the stores as the companies are making double profit when the item is sold.
I think this is what turned me off from retail as I saw the crooked side of their business and hated what I knew. I remember when I was doing my bed company that competitors were marking up a poor quality bed by 600 percent as the public has in their mind that if something costs more it is better quality. This is not true and doing your homework on something you need is advisable.
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