LHS ethics: Bartering

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T-Rex

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Today I stopped in a LHS and purchased a V2. The BT of the kit was out of round, not creased, just out of round at one end. Something that will most probably be corrected by the centering rings and tail cone.
I asked the proprietor if he would discount the kit due to the damage. He agreed and gave me 10% off. As I walked away, the high of getting the discount wore off as I started to think about the fact that I just took $ out of his bottom line for something that really isn't a problem.

Wont too much of this type of behavior accelerate their path to extinction? Maybe I am over thinking (as I tend to do)
I'm just wondering how the rest of the community feels about this sort of thing. Do you barter at your LHS?
 
I don't see anything wrong with what you did? I'm sure mark up on most kits is at least 50% or more and by him giving you a discount he hopes that you will return and buy more merchandise. Sometimes you have to give to get. He was only exercising great customer service. That how LHS survive today with all the online store. It's not so much the sale, but the service afterward.
 
You got a good deal, he got slightly damaged stock off his shelves for only a small discount. More importantly you had a good experience and will shop other again and tell people about the good store. More business for them. All around a win-win.
 
Many years ago I worked at a small "mom & pop" hardware store. Not a day went by that one or more customers would ask for a discount - usually between 20% - 40% off... and without any reason, just because they didn't want to pay full retail.

It wasn't so much the discounts, as the big box stores that opened up just a few miles away that killed that store.
 
He wouldn't have given you the discount if he didn't want to. Just reciprocate with more business and may the cycle never end...
 
Well, nobody held a gun on him to make him give you a discount... He could have said nope... The thing is, the product was slightly damaged tho as you said the damage was 'frivolous'... I hardly think a ten percent discount is going to put him in the poor house, plus he made you happy which will mean you'll probably return, and buy stuff at full price, maybe even higher than you could get it elsewhere...

Common business tactic to give you deals or freebies to rope you in... At least it used to be... Modern business not so much... Remember green stamps? Lol...

He bets making a customer happy will make him a repeat customer...

Later! OL JR
 
I do plan to return and give him more of my cash before I head home. The prices are higher than I would have to pay online, but I want to support the shop while I am here, and he has an Interceptor on the shelf.....
My boredom level will dictate how much more money he gets. I am working 6 nights a week with Sunday night off. Staying up on a Sunday night (in a hotel away from home) is diffucult without something to do. If I turn out the lights too early then I mess myself up for Monday nights' shift.
I just have to figure out how I am going to mail my toys home. Last time I did it, they arrived smashed.
 
When I was a kid in the early 80s, my Dad was into model railroading . We frequented the LHS and I heard the term "On the House" quite often.
Apparently this was good for business because we were there almost every Friday.
 
Wont too much of this type of behavior accelerate their path to extinction? Maybe I am over thinking (as I tend to do)

As a LHS manager and part time retired worker I can answer that this type of sale is better for us than no sale at all anfd I, for one, do appreciate you thinking about it. My guess is that the LHS's days are numbered.

I'm just wondering how the rest of the community feels about this sort of thing. Do you barter at your LHS?

I get people wanting to "make a deal" every day. Not sure why this is expected. Every time I go to the grocery and try to get a discount on bread or milk they look at me like I have three eyes. Last month making my house payment the guy at the bank didn't know what to say when I asked for a discount for being a customer for thirty years. (Of course the final answer was no.)

I don't have a problem working with folks that are regular customers or someone who has an issue with an item such as T-Rex. Also, I have a policy that if you can show me advertising of a specific item I will match the price.

The days of 50% mark up are pretty much over. For instance Estes kits (now owned by Great Planes) are retail priced at 100% mark up (sell for twice as much as the dealer pays.) However there is a SMAP (Suggested Minimum Advertised Price) that is 20% below retail. Most retailers must use this price simply because if they price everything at retail customers go elsewhere. A kit priced at 80% means the retailer makes 30% margin (not profit). Discounting this another 10% as in the original post makes the final margin about 22% over the cost which was paid probably weeks before. Out of that the retailer pays lights, heat, rent, employees, shipping, and all the other associated costs of doing business. Not whining or complaining, just stating the facts.
 
As a LHS manager and part time retired worker I can answer that this type of sale is better for us than no sale at all anfd I, for one, do appreciate you thinking about it. My guess is that the LHS's days are numbered.



I get people wanting to "make a deal" every day. Not sure why this is expected. Every time I go to the grocery and try to get a discount on bread or milk they look at me like I have three eyes. Last month making my house payment the guy at the bank didn't know what to say when I asked for a discount for being a customer for thirty years. (Of course the final answer was no.)

I don't have a problem working with folks that are regular customers or someone who has an issue with an item such as T-Rex. Also, I have a policy that if you can show me advertising of a specific item I will match the price.

The days of 50% mark up are pretty much over. For instance Estes kits (now owned by Great Planes) are retail priced at 100% mark up (sell for twice as much as the dealer pays.) However there is a SMAP (Suggested Minimum Advertised Price) that is 20% below retail. Most retailers must use this price simply because if they price everything at retail customers go elsewhere. A kit priced at 80% means the retailer makes 30% margin (not profit). Discounting this another 10% as in the original post makes the final margin about 22% over the cost which was paid probably weeks before. Out of that the retailer pays lights, heat, rent, employees, shipping, and all the other associated costs of doing business. Not whining or complaining, just stating the facts.

Joe's right and in time the LHS will eventually become a thing of the past. A lot of this has to do with the technology age. People rely on their computers and smart phones to buy things and by purchasing items on line it's more convenient and you tend to get the item less than if you were to buy it in a store. Some would argue the fact the if you buy something online you lose that customer service. I would have to disagree. I've bought things online and I was always able to shoot and email or call someone to get it resolved, what you do lose is that in person interaction. I tend to look back when I was kid and I would ride my bike down to the LHS to buy a rocket. I remember getting the Der Red Max for $3.99 and being able to see all the cool stuff in front of you and being to handle the merchandise sorta speak. You developed a relationship with the people that worked in the hobby store and they were always there to help you. It was just a cool place to be. Sorry I kind of got side tracked...
 
I often use coupons for items that I buy anyways. I also write to large corporations asking for free stuff. My dad did this in his day and I carry on to a lesser degree. You'd be surprised at how often large companies give stuff away. Even grocery stores have in store coupons or double/triple coupon days to get you to shop with them. If I buy a defective product I'm not shy about letting the company know about, even if they don't make it good I at least let them know they are selling crap. I see nothing wrong with a little barter at a LHS or any other place, what's the worst that can happen, they say no?
 
LHS are if you need something they carry now - or for introduction for a new hobby. Short of a good sale, the prices are not competitive. Mine carry only LPR, so nothing I actually need anyways. I used to get my epoxy there, but they were out of stock the last few times, so I ordered that online too.
 
I don't see any problem -- you didn't 'demand' the discount and it isn't massive anyway (maybe $2??) and certainly the shopowner didn't seem to be too put out he was offering it to you.

As most others have mentioned, he probably looked on it as a good investment on his part to get you hooked as a return customer.

If he told you 'stick it, full price,' you probably pay the bill, walk out the door, and never come back. Or maybe you say 'forget it,' don't buy the kit, and still walk out the door likely never to return.

If you ever come back and buy even one rocket at his list price, he almost certainly makes that discount back.

Plus it gets a piece of semi-damaged merchandise off his hands and some money in his till. If he plays hardball with you, refuses the discount, you say 'forget it' and walk out, for all he knows that kit hangs on the rack for another year. He may end up not selling it at all, or maybe the NEXT guy demands a 25% discount (or 30 or 40 or 50).

Personally, I probably wouldn't suggest/request/demand a discount unless the item was really functionally damaged (a tube creased, not just a bit out of round) but you weren't obnoxious about it.
 
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Allot of people feel that they are entitled to a discount.....(for whatever reason??)
People even ask for a discounts on a dented packaging, even though the contents are undamaged.

The internet makes things even worse.


JD
 
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