Forum Discussion
mich800
Nov 21, 2014Explorer
Eric&Lisa wrote:garyhaupt wrote:
....I am just off the phone to the local RV dealer/robber...$240.00 for new....
Be careful how quickly you blame the local dealer.
I was looking for a replacement car alarm system a few months back. Doing a self-install. Amazon wanted $110 for the system. The dealer wanted over $200. I told the dealer I would prefer to work with him, even if he is a few dollars more. His wholesale buy price was $135 - $25 MORE than Amazon's retail. He simply couldn't pay the wholesale, add a reasonable profit, and even come close to being competitive.
My point: It may not be the local dealer causing the price difference.
-Eric
Amazon does not sell everything direct. A very big part of the Amazon business model is similar to Ebay with a few differences. Anyone can sell on Amazon and Amazon will take their cut of the sale. Another big part of their business is their fullfillment. As a business you can warehouse your product with Amazon and they handle everything. From packaging, shipping and inventory tracking. It is not cheap and you need big margins to be successful. I find many things on Amazon where the seller has to be losing money unless they are buying in huge quantities.
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