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Re: Repeater price/ Price fixing.

Hey.

Welcome to the real world folks.  As a veteran of many retail music
stores and consumer electronics stores I can say that this kind of "Loss
leader" is not unheard of.  In fact, it is very common.  Sure, I get a
nice piece of gear near cost.  Result?  I have a nice pleasant warm
fuzzy feeling in my left toe when I think of Alto music.  Has Electrix
suffered?  Of course not.  They are selling lots of units.  Maybe they
give a bit of a volume discount to Alto music, but they're not getting
hurt at all, in fact I can't believe that Daemon is complaining.  The
retail price has changed, the wholesale price hasn't. (maybe a tiny bit)

Now, I know a bit about markups in the business, (and by the business I
mean the industry) and where stores make their big margins is in
accessories.  Am I going to be happy with the on board memory in my
Repeater?  No.  I'm going to want more.  Who will I go to?  Possibly the
store I have a warm fuzzy feeling for.  There is a huge markup in
accessories.  Frankly, I was so happy with my nice low price that I am
buying a Mo-FX as well.  If I like the Repeater I'll also become a
Repeater evangelist, as I was a JamMan evangelist.  On my advice, I had
3 other people go out and buy JamMans.  Due to the social nature of
music making Electrix knows full well the power of word of mouth,
especially when it is very hard to demo gear in music stores.

I think we all are aware that this is a special "Looper's Delight deal"
too.  A group buy, so to speak.  I can't imagine moving more than a half
dozen of this type of processor during it's first week out.  So I take
in say, $600 gross profit, minus what I have to pay my sales people to
talk the customers into the purchase.  Alto music may only be taking in
$10 per unit, but they've sold 50 units before they even hit their
stockroom.  So they may have grossed only $500, but they didn't have as
much overhead AND they've formed 50 really good relationships.  As far
as I can tell, it sounds like a win/win situation for everyone, so
what's all the shouting?  We'll have no trouble here!  This is a local
shop!

bye bye

Mark Sottilaro