The truth about rebates - are real?

Pay for retail, wholesale, or what?

There is so much advertising today for the purchase of services or products with substantial discounts or bulk purchase, or even buying in bulk. What is the truth? Let's examine exactly what is happening in the industry. First, define the terms.

Retail. The final price is usually from producer to consumer "YOU" are charged when paying the cashier in a row in September Whether it's cars, clothing, jewelry,electronic games or food. We Americans have become so indoctrinated that we have to pay that price, we have even more concerned.

And if a transaction on a "sale", 10% or 15% or 25% or even 50% is obtained flock to the store to buy. This is the general idea behind a sale. Many of us have spent a lot when it comes to sales. You have turnover of President birthdays, anniversaries, holidays, end of the month, at the end of the year, etc., etc. These so-called salesbecome meaningless. When a producer first, a new product, you try to generate great enthusiasm for the product, so people want and desire. Some items will be one of those types "I have" item. This is a retailers dream.

The pricing structure is as follows. Take a hot topic, such as mobile phones, iPhone, Blackberry and so on. While it may have been invented in the United States, will probably be made in China, Korea, Mexico or otherThird World country, where wages 50E for an hour, with little or no additional benefits or health benefits.

Let these numbers as an example. The item costs $ 20 to manufacture and ship to the United States. The marketing department provides a good sale price for this item $ 95 for the public is concerned. If you expect to advance marketing, which will be a great demand for the product, you probably imagine the voice for $ 145 You know, there are about 10% to 15% ofthe public that pays the price because it is "hot" and wants to be the first to have it. If this amount is sold, the price drops to $ 119 on the next group, who would not pay $ 145 for it, but to buy a $ 119. If the crown is saturated, then the price goes down, prices are initially expected, $ 95 That is, buy when the majority of the American population.

Since the market is saturated, dealers and retailers such as WalMart to buy huge quantities of the item, the numberingmillions. They sell for about $ 70. You probably paid about $ 35 - $ 40 Furthermore, it is sold online, sites like eBay, Craigslist and other auction sites and even stand-alone sites. They advertise a discount of 50% or even 60% on the price of retail. But at what price? They are probably based on the original list price of $ 145. So 50% is $ 72.50. If you buy $ 30 or $ 40, they also make a good profit.

So if you see, are an entirely new, especially electronics, save the originalShow, and again a year or two. And watch the price drop as I explained simply. Now there are many companies that advertise online, through magazines and business opportunities, will set up a website for you and you can sell those items. Some advertise 50% to 80% off retail price. Big Deal. This type of business opportunity, I heard advertised on the radio bragging about their institution, and for only $ 400 or so dollars, you not only get your own website, but the right to buydiscounted at 40%. But 40% of what?

You can probably buy the same thing at WalMart similar price. A 80% discount, you have a shot at him, but remember, the significant increase in sales has already passed. Like a big wave surfer looking for, it's too late, after the wave has passed.

You can kill one, by the spring, to make the purchase directly from the manufacturer, but you may need to buy thousands if not hundreds of thousands to get a good price. It 'hard to competeconsumer goods such as Walmart, Kmart, Costco, Sam's and so on. The secret is to find a product that is not sold in these shops. And this is hard to do.

So I go back to my original question, how good is the discount? If you are just buying one for yourself, you can pay a lot of $ 20 or $ 30, but be careful when you are tempted to buy in bulk. Know your prices. Before embarking on a product for review. Not the big sell? And what do they charge? Remember the old caveat"Buyer Beware".