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Old 01-28-2013, 11:36 AM   #50 (permalink)
jr24ai3
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Join Date: Oct 2010
Posts: 2,829
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[QUOTE=lennox.p;4119223]how do you know what lcs owner have to pay for their items? the price depends on the number you buy from them, so the prices are lower than we think. most products retailer sell have an increase of 100-120% of the buying price. for example we buy shoes from nike 50$ a piece and charge 120$ in store, wich is the mapp from nike. after some time we are able to give discounts for them, by the end to get rid of them we do 50% off the original mapp so still with 50% off we have 10$ + what we paid for them. i think some guys need some merchant help.

so we buy it for 50$
mapp is 120$
we have a + of 70$
with this 70$ + we need to calculate all our cost (tax, rent, workes, energy ....)

so you example with contenders
asking price 120$
buying price 90
+ 30$ can't work, because it can't cover the lcs costs!
the buying price is in the 50-60$ area not 90$

the buying price from any manufacturer is under 50% of the asking price.

[QUOTE]

This is not how it works with wax. Direct cost from Panini for a Contenders basketball case comes out to 90/box. Possibly Blowout gets a little extra discount since they order a ton of cases. But for the average LCS that orders the 1 case that Panini allows them to order direct, it is 90/box with MAPP pricing at $120.

The markup on wax is completely different than Nike shoes. Not every industry is the same.

The small markups on wax is the reason why a LCS struggles if they only specialize in wax.
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