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Why do people say "price point"?


johnrambo

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i've never heard this before until and i got on this forum and i still don't get it. why don't you just say, "at that price..." instead of "at that price point..."

is this just a retail term i've never heard? it's sounds dumb everytime i read it.

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i've never heard this before until and i got on this forum and i still don't get it. why don't you just say, "at that price..." instead of "at that price point..."

is this just a retail term i've never heard? it's sounds dumb everytime i read it.

 

LOL, I NEVER say that!

 

What I usually say is "at that {censored}in' price, I'm not buying one" :lol:

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If I were to use the phrase "price point", it would refer to a specific price or under. If you had $200 dollars, I would suggest something at that price point (ie. $200 or under). I also use the phrase "price range", which would allow me to go a little over, or a little under the price (ie. $175-$225).

 

Eh, I don't say that stupid {censored} either, but that's the best explanation I can think of.

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If I were to use the phrase "price point", it would refer to a specific price or under. If you had $200 dollars, I would suggest something at that price point (ie. $200 or under). I also use the phrase "price range", which would allow me to go a little over, or a little under the price (ie. $175-$225).


Eh, I don't say that stupid {censored} either, but that's the best explanation I can think of.

 

Yeah, I say 'price range' sometimes...although I prefer the somewhat more friendly everyday talk of.. "around that price" or whatever....I guess I try and type as a talk in RL, I guess some people do the opposite to make it easier to read, I just type like I talk, usually rambling nonsense! :lol:

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If I were to use the phrase "price point", it would refer to a specific price or under. If you had $200 dollars, I would suggest something at that price point (ie. $200 or under). I also use the phrase "price range", which would allow me to go a little over, or a little under the price (ie. $175-$225).


Eh, I don't say that stupid {censored} either, but that's the best explanation I can think of.

 

I guess I use it, for pretty much the reason you said.

 

Perhaps I'll mend my ways. :idk:

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Price points would be this sort of thing:

 

Would you buy product A at $0.99 or product B at $1.03?

 

Would you buy product C at $9.95 or product D at $10.05?

 

The use of ".99" and ".95" as a suffix on any particular dollar amount increases the sale price by a dollar, but psychologically leaves it at the dollar amount "plus some change." It's very effective at $199 versus $201 because it seems like "one hundred something" versus "two hundred something" and the consumer is comfortable enough with the lower figure that s/he doesn't bother calculating that there's only $2 difference.

 

Price points are price tag figures that have been proven (by time and endless tweeking) to sell the most products at the greatest profit. Musicians are generally smarter than the average consumer, however, which has created the sort of "make an offer" or "what will you sell it to me for" bargaining you would never see at Best Buy (although you actually do see it at Guitar Center.) This leaves retailers in the uncomfortable position of having to think all the time and carry a calculator around in their pocket, trying to figure out whether they're still making a profit. The old system was A, B, or C marks, but once musicians caught onto that system they were able to look for the letter designation on the product's price tag and do a rough estimate of what the store had into the product and make an ultra-lowball offer that gave the retailer a painfully tiny profit. Modern pricing with MAP (minimum advertised prices) has helped stabilize the pricing at stores so that salespeople generally look at the MAP and won't go much below it, figuring it's the lowest price the store's owner would want them to sell it at anyway.

 

Startup music stores go through a very painful growth period and making no profit (hence the owner is starving) for the first couple of years as they undercut the other local stores and attract more musicians, and then as they grow they resist lowball pricing more and more until they get up near MAP on most prices like everyone else. Just like musicians who have to be paid a minimum amount at a gig to cover gas to the next one, plus a couple of stops at McDonald's and a windshield wiper or tire patch, stores have to make a certain profit or their doors close and they give up the dream. Hence the use of "price points" to make a profit through psychology by increasing the number of sales and the amount of profit at the same time. What you can expect to see as inflation takes over the US is that MAP prices will slide right up to predictable price points, and dealers simply won't sell certain pedals for less than say $199, which for many years has been the sort of price point reserved for MSRPs (Manufacturer's Suggested Retail Price), a figure at which most musicians will automatically ask for a discount because it looks fishy, period. But that's where it's headed, folks, because component pricing has been forced up by oil and metals costs in Asia and elsewhere as the worldwide demand for recycled metals has depleted the sources of cheap metal forever, and new material has to be mined. It's not talked about very much, but a great deal of the enormous expansion by China was fueled by inexpensive oil AND inexpensive recycled materials (especially metal) shipped over from the US and Europe. I started noticing dramatic price increases (25% and more) on components during the last 2-3 years as recycled metal availability dried up and oil went up and its only going to get worse.

 

I'm sure many of you have heard stories over the last couple of years of thieves ripping all of the copper wiring and copper plumbing out of abandoned or "for sale/lease" buildings or houses. That's because the prices offered by recycling yards are going through the roof and few questions are asked about the source of such materials because they're so valuable that nobody wants to give up any profit by asking such questions. Ultimately, this criminal activity is driven by consumer demand for electronics. Burglar alarms, son, that's where the future is. 8^P

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i've never heard this before until and i got on this forum and i still don't get it. why don't you just say, "at that price..." instead of "at that price point..."

is this just a retail term i've never heard? it's sounds dumb everytime i read it.

 

Because the love of money is the root of all evil. :wave:

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