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From: wes@obie.UUCP (Barnacle Wes)
Newsgroups: comp.sys.amiga,comp.sys.atari.st,comp.sys.ibm.pc,comp.sys.mac,sci.electronics,comp.arch
Subject: Re: GATT declares U.S. - Japan chip pact illegal
Message-ID: <131@obie.UUCP>
Date: 8 Apr 88 22:26:11 GMT
References: <2441@unicus.UUCP> <1259@hubcap.UUCP> <3280@fluke.COM> <1563@homxa.UUCP>
Organization: the Well of Souls
Lines: 36
Summary: Inexpensive cameras, radios?

In article <1563@homxa.UUCP>, wada@homxa.UUCP (R.WADSACK) writes:
> A few years ago there was an article in the Sunday Star-Ledger
> (of Newark, NJ).  The story was a write-up of an interview with
> a high school foreign exchange student from Japan.  There were
> the usual questions about how he liked his new school, the food,
> his new friends, etc., etc., etc.
>  
> The reporter also asked him what was one of the most surprising
> things about this country.  His answer -- how inexpensive the
> radios and cameras were here compared to Japan.  Huh????

A few years ago, I worked in a store, actually the "head" of a chain,
that sold photo equipment, stereos, and had a (small) computer store.
The usual policy of this company was that all equipment arrived at the
Distribution Center in the main store, and was re-distributed to the
individual stores.  The DC recieved 7% over their wholesale price off
the top of all equipment *except cameras*.

The cameras were not marked up by the DC because cameras were typically
sold at a 1-2% margin, and the stores could not be competitive with a
7% warehousing fee.  The reasoning behind this pricing is if you buy a
camera from them, you'll come back for lenses, filters, batteries,
film, photo finishing, cases, etc...  And *it works*!  Of course, the
markups on all these items were much higher - typically in the 50%
range.

On a side note, the most outrageous markup I've ever seen was also at
this store.  They sold a Bang & Olufsen turntable cartridge for a
price that was $5 below the only other store in the area that sold it
- about $130.  Store cost on it was about $19.  Good thing employees
bought at cost, eh?
-- 
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 / U i n T e c h \  -       Schiller        -     obie!wes