Suzanne O’Connor’s Bargains LA

Getting the Best Deal

After the plentiful Warehouse /Sample Sale season we just went through many of us are spoiled by the super steep discounts we found. Many stores took some losses but many also made a profit…by marketing and using MSRP as the price point discount comparison price.

Savings and discounts are relative to the markup, cost and quality of the product. Not all merchandise is marked up the same. Markup up at the big discount stores like Big Lots and Walmart can be as high at 400% or as low as 50%. Department stores tend to mark up 150%-400% and boutiques tend to mark up 100% (doubling) to 200%.

A manufacturer may sell a blouse to Macy’s at $20 wholesale. But since an independent boutique buys in smaller volume, that same blouse could cost a boutique $40. Both stores will try retailing it at $80.

But even that inside knowledge is not a shoe in to discovering the real wholesale cost of a product. Large appliances markup ranges in 15%-30% range and home furnishings can range from a 50% mark up (usually at places where you custom order) to 500% markup at name brand stores.

MSRP means Manufacturer Suggested Retail Price. It doesn’t mean the product ever sold at that price. But it is the referral price we look at.

A lot of manufacturers publish the MSRP price to help their clients (distributors & stores) look like they have a good deal, when in fact, even at 20%-25% off, they could be actually selling at retail.

Keep in mind that business are in business to make money. So their markup is in tune with that idea. They have costs to cover and bills to pay.

The best way for you to get a great “ bargain price”, shopping at a source that buys at below wholesale. The question of “how can a store sell for less” is the most important question to ask. Did they buy the item for less? Is it the exact same item that another store is selling? Is their markup lower?

So how do ya know if you have gotten a good deal?  Do your homework. Research and comparison shop whenever possible.

I like to look for discounts of 35%-40% or more in most categories, except electronics and appliances. In those, I look for the best price on the best product.  Again, that means doing a lot of research before you buy.