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Looks like one retailer's finally had enough of being undercut by Costco...

15K views 130 replies 58 participants last post by  jessejames 
#1 ·
Got an email from Leland Fly Fishing Outfitters in San Francisco that they are liquidating all their Sage rods and will no longer do business with the company b/c they can't compete with Costco. I'm not trying to open up a debate here (it's already been discussed at length several times over), but if want 30% off a new Sage ONE I suggest you get on it:

www.lelandfly.com/On-Sale/
 
#120 ·
"MAP pricing isn't fixing" ....? .. hmmm,,,,,,smells like a duck...?..... it would have been called fixing 35 years ago. I guess not now, " they" have come up with a "fancy" name so they can avoid talking to their children thru a glass plate while wearing pumpkin orange .
 
#121 ·
"MAP pricing isn't fixing" ....? .. hmmm,,,,,,smells like a duck...?..... it would have been called fixing 35 years ago. I guess not now, " they" have come up with a "fancy" name so they can avoid talking to their children thru a glass plate while wearing pumpkin orange .
If I understand correctly, MAP pricing dictates that a product cannot be advertised or marked at a lower price than agreed upon. Doesn't mean it can't be sold for a lower price.
Companies like Bose have been doing this for years quite successfully.
Manufacturers believe that once one retailer starts advertising their product at a lower price, they're considered a discounter. Discounters generally (historically) carry lower end products, and now the perceived value of the product in the consumer's eye has dropped. As well as now all the other retailers have to drop their shorts in order to compete, an make much slimmer margins.
So, case scenario, let's say I own a fly shop. I've now had to discount my Sage rods to $300 in order to compete. I'm making $25 a stick on them. -OR- I can sell an Echo rod for $250 and make $125 a stick. Which do you think I'm gonna push? I'm going to down-sell Sage and try to up-sell Echo. Again, Sage's image drops.
 
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