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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: DrGrabow who wrote (38806)	3/7/2002 7:37:44 PM
From: GraceZ	Read Replies (1) \| Respond to of 99280

???????????? What business? Clothing. When you buy clothing at a department store 90% off it is still priced 100% over what the store paid for it. I was given this piece of information from a friend of mine who buys for a retail clothing store. This is not true if you shop discount stores. How else can you explain $19 shoes and $350 shoes? If the store I buy my running shoes sells me last years model at $30 and this years model at $150, if there was only a 5-10% markup it means they are selling me $30 shoes that they paid $137 bucks for (I don't think so). Since there are a lot of these discounts in clothing and shoe stores its fairly obvious that there's one hellova mark up on full retail price. More than likely my store's cost on those running shoes is $10-15 or less. Carpet also has a 1000% mark up. I was told this by the two wonderful guys who installed mine, after the fact of course. Your Dad is in the wrong biz. I beg to differ. Home Depot and Lowe's provide cut rate discounts to contractors that keep them coming back. Pulease, I'm married to one of these guys remember? He's a Pro Card welding HD shopper. -g- And I used to do a lot of work for one of the biggest home builders in the country and I can assure you they do not buy their basic materials from a Home Depot, they buy their supplies directly and in bulk. To suggest otherwise is ridiculous. Even in commercial, sure you might send a helper over to HD to pick up a box of nails, but the reps from the suppliers show up on the job and ask you what you need, my husband buys direct from the manufacterers rep. Now if you are talking home improvement guys, yeah, you'll find them at a HD most any day of the week because they don't have the buying power to deal direct that a big home builder has and the regional suppliers can't match the prices. Don't confuse the economy you see with the one that occurs on the business to business level. That dry wall shortage had less to do with the manufactering but had everything to do with the cost of moving it to where the building boom was occurring. Its too cheap to truck long distance, especially during a gas spike. I remember reading about the drywall shortage and asking my husband if they were having trouble or was it costing them an arm and a leg. He said, "There's no drywall shortage here. USG is right in town, we call 'em up and they deliver it any size we want." We had our own building boom, so if you are only going to sell something for $2-4/sheet, who you gonna sell it to, a guy across town or 1500 miles away?