[Bass-ic Instinct]

Competition between shops perhaps? From a friend who owns a tackle shop i know that there is the price shops buy for, the RRP, and then an expected profit margin. However shops realise that if the overprice items they will loose sales to cheaper rivals who offer the same goods at a reduced price. This is why many tackle shops offer price match deals, and how many smaller companies who buy smaller quantities cant afford to have such low prices due to higher initial outlay (cheaper in bulk) and the need for bigger profit margins. Hopefully this helps you, as this is my understanding of how the prices are actually set.

 

[Bass-ic Instinct]

I can give an example, note I am only using this (names removed) as it is one i know about. Reel 'x' costs £45 plus VAT, or £40 plus VAT if you buy five or more. This works out at about £53 for one reel or £47 for five or more. The RRP of the reel is £79.99 as suggested by the manufacurer, however other shops are selling at between £59.99 and £69.99 as an introductory offer to attract customers. This means that the shop selling at £59.99 will sell more, forcing other shops to sell for a price of £59.99 due to competiton. The projected income on the reel is actually £32.99ea for orders of five or more, however being sold at £59.99 instead the actual profit is only £12.99 per reel. I hope that explains it for you.

 

[Bass-ic Instinct]

Man me and Edgey know our stuff about business studdies! Perhaps that was my true calling in life instead of Architecture? Atleast you have learnt something new today Marcus.

 

[Bass-ic Instinct]

Good question. A point to remember though is that postage is always cheaper in bulk than in single. Another flaw in your plan is that if you buy 100 reels you need somewhere to store then. A bigger premises will increase overheads, eating up your profit margins. Now theres one for you to ponder over?

 

[Bass-ic Instinct]

If you watch that guys technique though i think he could hit unbelievable distances with any of the mentioned reels (aslong as it had enough line on!).