Current Events > Just how much margin is there on retail products?

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IdiotMachine
11/22/21 1:47:54 PM
#1:


I'm having a baby and looking at car seats. Our daily driver is a small car (VW Golf), so I wanted a small car seat. This was on my mind, which sells for $200:
https://www.amazon.com/dp/B08C7DDMZ4/

But on Buy Buy Baby, it currently sells for $140:
https://www.buybuybaby.com/store/product/graco-reg-slimfit-trade-3-in-1-car-seat/5213434?skuId=69229466

And you can add a 20% off coupon, making it $112. If you happen to have a Registry Completion 15% off discount, you can stack an additional 15% making it $95. If you use Klarna's "pay in 4 installments with 0% interest", Klarna will waive the 4th payment, effectively making it an additional 25% off, at $71. Furthermore, if you checkout using a cash back platform, you can get like 2% back; and if you use a credit card to pay for the Klarna's payment, you can get additional 2% back.

This means out the door, you pay less than $67 + tax... This thing is also big and bulky, and kinda heavy (at 25lbs). So this will probably cost at least $20 to ship to me via express shipping (which is "free").

Obviously they still make profit, otherwise they won't sell it at this price with all these bullshit coupons. So does that mean retailers buy these products from manufacturers for like $40? Hell, how much does it cost manufacturers to even make and bulk ship these to retailers; like $20?

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ApherosyLove
11/22/21 1:55:58 PM
#2:


So many.

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pick4six
11/22/21 1:57:07 PM
#3:


sometimes 200% but usually 25-65%


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IdiotMachine
11/22/21 1:58:14 PM
#4:


pick4six posted...
sometimes 200% but usually 25-65%
I mean in this case, assuming they bought it at $40 to make like a $7 profit, and they sell it at $200 (like Amazon is selling it for), that's a 500% markup...

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Romulox28
11/22/21 2:07:17 PM
#5:


my theory is that the markup on baby car seats is huge because nobody buys them used, so graco or chicco or w/e can keep manufacturing virtually the same seat every year for cheaper & cheaper and see how much people are willing to pay. it's like college textbooks. newborn stuff in general is a huge scam, prepare to overpay a lot in the beginning

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