New Year's thoughts

**drk** · 01-03-2006, 10:35 AM

% off retail price/ % increase in transaction volume necessary to break even

10% / 12%
15% / 17%
20% / 25%
25% / 30%
30% / 37%
40% / 50%
50% / 75%

% added to retail/ % decrease in transaction volume allowable to break even
10% / 10%
15% / 15%
20% / 20%
25% / 25%
30% / 30%
40% / 40%
50% / 50%

**Chris Ryser** · 01-03-2006, 10:43 AM

Originally Posted by drk

% added to retail/ % decrease in transaction volume allowable to break even

50% / 50%

I love this one the best..............................

charge 50% more.......................and you need 50% less customers

However you will have to take in account that all the customers that do not want to pay high prices will go somewhere else.

On the other hand if you will be successful doing it you can go to the Caribean Islands every 2 weeks for a few days.

**AWTECH** · 01-03-2006, 10:47 AM

Whats retail? Walmart is quite different from a high end optical for example. The retailers suggested retail can be almost any number they want. There are a few controlled retail price point brands (Oakley to name one). I doubt anyone who wants to keep their Oakley account will discount.

Are talking about the image impact of a discount based on a retail price that you set?

Car dealers are slowly moving away from their previous sales model which lead everyone who bought a new car to think the dealer lost money and made it up in volume. Add like buy for $100 over invoice. But they did not mention the 3% annual hold back.