Leupold Prices

Guys no discussion of illegal activities will be tolerated, that includes post about trying to get around the US export laws.
 
Dogleg, I initially had decided to not respond to your "tap dancing" comment as I felt that I had fully explained my position and that we shared different opinions and let it go at that. I don't know how much more I can explain my position on pricing and profits when it comes to Leupold products or any other items we sell. Our goal (along with that of every other retailer) is to make as much money on the products we sell as the market will bear. This can be accomplished by a larger mark up and higher profit dollars per item or lower mark up % and make less $ per item sold while hoping to sell greater volume to make up for the difference on each item. Products with high quality, great warranty, good distributor support and high customer interest do not have to be discounted. Whenever you see something on sale or the vendor taking a small profit it is usually because it is not selling as well as expected. Consumers will pay more for items that they believe (correctly or not) are high/good value than those they beleive are not. Obviously the Leupold brand has been successful in Canada because of the great quality of the product and the equally great service (warranty and support) of the distributor. If you or anyone else in Canada feel they are paying too much for the product and accompanying support then you are free not to support us or our product lines. If I thought I could make more money over all by lowering the retail cost of Leupold products then I would have done so. I am free to set any price I want but obviously my large competitors would lower their price as well (mabey good for the consumer in the short run) but in the end I would sell the same number of units as before and thus make less money. I would feel less interested in buying the large volume of product that I do every year(along with my competitors) and the distributor would bring in less product as well. In the end the biggest concern/complaint I seem to get from customers is lack of inventory in Canada with prices being secondary. With Leupold, at least we are able to keep large inventories and keep the majority of our customers satisfied. Phil.
 
P of PDent said:
Dogleg, I initially had decided to not respond to your "tap dancing" comment as I felt that I had fully explained my position and that we shared different opinions and let it go at that. I don't know how much more I can explain my position on pricing and profits when it comes to Leupold products or any other items we sell. Our goal (along with that of every other retailer) is to make as much money on the products we sell as the market will bear. This can be accomplished by a larger mark up and higher profit dollars per item or lower mark up % and make less $ per item sold while hoping to sell greater volume to make up for the difference on each item. Products with high quality, great warranty, good distributor support and high customer interest do not have to be discounted. Whenever you see something on sale or the vendor taking a small profit it is usually because it is not selling as well as expected. Consumers will pay more for items that they believe (correctly or not) are high/good value than those they beleive are not. Obviously the Leupold brand has been successful in Canada because of the great quality of the product and the equally great service (warranty and support) of the distributor. If you or anyone else in Canada feel they are paying too much for the product and accompanying support then you are free not to support us or our product lines. If I thought I could make more money over all by lowering the retail cost of Leupold products then I would have done so. I am free to set any price I want but obviously my large competitors would lower their price as well (mabey good for the consumer in the short run) but in the end I would sell the same number of units as before and thus make less money. I would feel less interested in buying the large volume of product that I do every year(along with my competitors) and the distributor would bring in less product as well. In the end the biggest concern/complaint I seem to get from customers is lack of inventory in Canada with prices being secondary. With Leupold, at least we are able to keep large inventories and keep the majority of our customers satisfied. Phil.
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That is as honest and factual an explanation of the situation as you are likely to get.

The fact of the matter is that product pricing is not determined based on what is "fair". It is based on what the market will bear. Canadians have traditionally lined up at the counter to pay substantially more for the same goods as our southern neighbors. Thus, the high price is one that the market has proven to bear.

If you wish to see lower prices, you need to keep your wallet in your back pocket and walk away from the counter.
 
And once again, you evade the point. I couldn't care less if a dealer triples his own prices. My issue is when businesses seek to dictate the prices other businesses sell for, no matter what the product.
 
Dogleg said:
And once again, you evade the point. I couldn't care less if a dealer triples his own prices. My issue is when businesses seek to dictate the prices other businesses sell for, no matter what the product.
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I must be thick but I still don't get your point. I only wish I had enough market share or influence in Canada to dictate prices to other dealers. If you are refering to other retail competitors then we can sell for whatever prices we or they wish. The fair trade laws in Canada stipulate that there can be no price fixing in an organized fashion where we sit down together and establish fixed retail pricng that no one can for less. Likewise the distributor cannot dictate the retail price that we must sell at and we are free to set our own prices to whatever the market will bear. In some cases we lower our mark up to match an aggresive competitor but there reaches a point that it is not viable to continue to sell that product and we have got out of those product lines because of this. We sell our products Canada wide so we have to be competitive (for the most part) across Canada. If a competitor lowers the price or has a sale I can either react to it by matchig their price or not depending on the size of the competitor and the amount of product they have (or is even available in Canada). Distributors and manufacturers set MSRP's (manufacture suggested retail price) and often we sell at less than this. The distirbutors don't like to see their bread and butter products discounted because it devalues the perceived value of the product and makes it difficult for the small retailer to be competitive. We are a large volume buyer so I buy at the best price (because I book early and big) and we pay our invoice early to get the maximum discount. Smaller retailers may not have this option and if I were to cut my price by 10-15 % they would barely be able to make any profit to match those prices. We often have sales (sometimes on Leupold discontinued products and that is the clear the shelves for new inventory coming in) but they are limited time or limited products. So far our business model seems to be working as we are doing volume sales and making enough profit to keep Dianne and I interested in continuing this business. Phil.
 
Phil, if I read this thread correctly, Dogleg is flat out suggesting that you went to Korth and tried to have someone's Leupold dealer agreement pulled because you didnt' like the price they were selling scopes for.

If I've misunderstood, I stand to be corrected, but that's the insinuation.

FWIW, I currently work in a small shop that sells Leupold among other things. I see the markup the owner puts on the product; it's not MSRP, it's a reasonable profit, and not one customer has thought it too high. It's also in line with advertised prices from other dealers, though that means little in our small market.
 
This is why I like supporting P&D

Dogleg said:
So did I hit a nerve?:p Just as your post states those that think that Canadian prices are too high have only the dealer and Korth to look at.
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If you don't like it don't buy it. If enough people have the same issue as you and don't buy the product then P&D will lower prices or drop the line. Obviously most people have no problem paying the prices Phil is charging and are happy with the value they get in the Leupold line. Phil has come out and said he does this to make money...duh...good for him...I have no problem supporting local dealers who offer EXCELLENT service like P&D and having them make a profit. I like people who make profits. People that run a business without making a profit are stupid.

Anyway...I've dropped more money than I care to add up at P&D (and a LOT less than some I'm sure) and I plan on spending a lot more there. Hopefully Phil and Dianne keep making profits so that I can continue to enjoy shopping there. Leupold optics offer excellent value for the money as far as I'm concerned. A little more than an equivalent Bushnell maybe, but from what I've heard their warranty service is excellent should you ever need it.
 
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