How do American retailers stay in business?!

[romeonich]

There are many ways to make money from videos—both for adults and children.

[starwender]

Prices form from the next factors - transportation, packaging, storage rent, financing, marketing, sales(shops renting price, salary for workers). So if we will check those factors we will see that the medium salary for the USA is higher than in Europe, the transporting price is also higher, the property taxes are also not equal with Europe, in the end, we have the price that is higher by 21%. In some situations, retailers can reduce the price if they address the prover insolvency company like this one ndandp.co.uk.

[Ugly Old Guy]

So I started my fountain pen hobby as many people here through Goulet Pens, but as I delved deeper into the field, it seems that there is a HUGE markup in both pen and ink sales buying from a North American Retailer compared to a european one:
FOR EXAMPLE:
A Pelikan M1000 is 700-800 USD PLUS TAX ~ totals 800-900 USD
A Pelikan M1000 at Appelboom is 530 USD NO TAX. At CultPens it is 404 USD NO TAX.

Thats almost double the price!!

Same thing with inks:
Diamine Ancient Copper 50mL is $15 PLUS TAX at Goulet, JetPens, Goldspot, etc... but it is 7 bucks at La Couronne du Comte and CultPens..


If you take the price of European retailers as the norm, then US retailers pricing is absolutely exorbitant.
How is the pricing justified?

You are forgetting to add shipping, VAT, (some offshore dealers charge VAT, even if it is going to North/Central/South Americian locations that don't have a VAT tax, others don't) and whatever your state's sales tax is (your state's sales tax (if any) is added automatically when you check out) to the online price, or the cost of round trip air fare, VAT, the exchange rate, transportation, and any local taxes, if you go to Europe to buy it in person.

The dealers in the states are probably getting them at wholesale. I don't know what the wholesale rate is. In addition, they have to pay shipping, which depending on the size of the order, can be of some consequence. If it comes from a distributor, did the distributor have to pay for it, or are they owned by the manufacturer? If the former, they have to charge more than the wholesale price they paid, at least if they want to remain in business. If you're just trading dollars, you won't be in business very long.

The actual markup may be less than you think. The prices you posted above for the pens sold online from offshore dealers, are those amounts in the local currency, or US dollars?
If US Dollars, the price will fluctuate up and down with the exchange rate.

Having worked retail, I know the markup on non-food items excluding alcoholic beverages and tobacco products is usually around 20 to 25% Food items, alcoholic beverages, and tobacco products usually runs about 20% higher. Restaurants, of course, have a much higher markup.
(Easiest way to calculate the retail price: your cost multiplied by 1 point whatever your markup percentage is. E.G.: a 25% markup is cost x 1.25. That automatically adds your cost to your retail price, since any number multiplied by 1 is the number you start with.)

[Ron Z]

Wholesale rate is usually 50% of MSRP. Most people expect at least 20% off of MSRP, which limits how much they can make in profit.

[RicardoClayborneokp]

Scams are prevalent on the Internet. Scammers have one goal - people who want to earn extra money on the Internet. A particular target is you - teenagers. Fraud is implemented in many ways, so telling about each of them will not be realistic. I can tell you that my son has also grown to the age where he wants his own pocket money. And he started asking questions about how to make money as a teenager. It wasn't the first time for me because I was like that myself. So I advised him to go as a waiter in a restaurant.

[Richardtractorguy]

I don't know how American retailers stay in business but I am glad they do. Very happy with my purchases from Goulet pens, Franklin Christoph, Birmingham Pens, Pen Boutique Pens. But one thing is certain, never underestimate the power of governments to ultimately affect pricing. I have been collecting fountain pens for over 30 years and the prices keep going higher as governments keep inflating currency (I am not an economist so I don't know if this is good or bad). Off topic If you get a chance read Illegal Tender by David Tripp, fascinating story about our government.

[FredRydr]

@Richardtractorguy, did you by any chance inherit a collection in Waterfall, PA that no longer appears roadside every summer?

IMG_1127.JPG

[Richardtractorguy]

Nice collection!!! Sadly that is not me. My collection consists of a lonely Kubota B7500. I used to own a JCB 217S but no longer needed it.

[FredRydr]

[FredRydr]

Okay. Just thought there might be more vintage stuff than pens in your house.

[Richardtractorguy]

Nice vintage pen that I purchased from Greg Minuskin. It looks like he maintains a pretty good business.

[Richardtractorguy]

PXL_20220102_172744409.jpgPXL_20220102_172827616.jpg

[Mazanbik]

Honestly, I also wonder about this question from time to time. With the development of online stores, I think the profession of retailers is gradually dying. Why pay a mark-up to a stranger when you can give money for delivery, which will go to the development of your favourite store?
Although I understand that the time is not easy, many have to seek help from specialists in bankruptcy or settlement of financial difficulties, antonybatty.com. But I hope that taxes and prices for luxury goods will return to normal over time, and I, as Richardtractorguy, will be able to replenish my collection with a new fountain pen.

[An old bloke]

Honestly, I also wonder about this question from time to time. With the development of online stores, I think the profession of retailers is gradually dying. Why pay a mark-up to a stranger when you can give money for delivery, which will go to the development of your favourite store?

I don't think it is dying, but I do believe that it is changing exponentially. I believe two factors are driving what could be described more as a metamorphosis than an evolution. The first obviously, is the internet. It has literally opened a global market to even the smallest business and even 'cottage industries'. The second, I believe, is the COVID pandemic which has motivated entire populations to change how and even where they shop as they shift to online shopping and home delivery.

[amk]

I see a couple of things already happening in my local area in France. One, common in rural areas but now also in smaller towns, is the mobile business; the once-a-week fish van, butcher's van, pizza van, and so on. In metropolitan areas there are pop-up shops, which I think are a good model for small artisan businesses to promote themselves without the long term liabilities of a standard rental.

Another is retailers who offer education and workshops - for instance an interior decor shop I know is now doing weekend courses on restoring furniture, decorative wall painting, and so on. There is a big focus on advice, on creating packages of product, and on offering more than just 'things on the shelf'.

[RandyA1983]

As far as I remember, a retailer is a retailer who sells the product directly to the customer. In other words, simply put, is it the last link between the production of goods and their delivery to the client? I don't seem to have confused anything. If so, it's not surprising since the service market is so different now that there is a demand for any service. I guessed this because I did not immediately, but after I got on the site https://www.moneyunder30.com/, I realized that any service has a right to life due to how dynamic social and economic relations.

[An old bloke]

As far as I remember, a retailer is a retailer who sells the product directly to the customer. In other words, simply put, is it the last link between the production of goods and their delivery to the client?

Indeed it is. With that, those who sell pens on this, and any other, website are in fact -- retailers -- and in effect small business owners.

[Topless]

Handling an entire company may be challenging, primarily when you sell products in small quantities. My family has a small business in our town, and things were not so good initially. They were always in debt, didn't keep up with taxes, and wanted to close the company for which they had been working so hard. I decided to support them but didn't know where to start. When I was about to give up, I found https://www.doughroller.net/ and asked their team whether they could help my parents or not. Managing their money was what they needed, and our shop is full of customers again.

[eachan]

Spam reported.

[Chrissy]

This is probably the most spammed thread on FPG. I wish Eric would either lock it or remove it.