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  1. #61

    Default Re: Article: Barneys explores bankruptcy filing

    Quote Originally Posted by N.CAL Fragrance Reviewer View Post
    It was tempting to do for certain brands - Frederic Malle came to mind. However if you took a look at the going prices for those 50ml and 100ml bottles on places on Ebay or even in the sales thread, they're still fairly cheaper than the prices what Barney's is selling them for even with the discounts. For instance Rose & Cuir gets a 5% discount + an additional 10% discount. A 50ml would cost $192 excluding sales tax.
    I hear you. Not much of a sale. One would think they would price like online prices to ensure moving the stock out.
    ​"It was foolish of her not to have bought a larger bottle."

    Dorothy Eden, The Time of the Dragon

  2. #62

    Default Re: Article: Barneys explores bankruptcy filing

    I've been saying this for a while: To avoid the pitfalls of brick and mortar retailers going out of business, brands are going to have to change their business model and start selling to retailers with stipulations that the retailer has to maintain a minimum price. This is what it will take to keep the retailer in business so customers can actually casually come in, be introduced to the product, and sample it. Brick and mortar retailing really should be seen as a form of advertising, in a sense, for the business model of a brand.

    If online retailers undercut any brick and mortar store, eventually it's going to be self-defeating to the product because few consumers will know about it or be introduced to it.

  3. #63

    Default Re: Article: Barneys explores bankruptcy filing

    Quote Originally Posted by FiveoaksBouquet View Post
    One would think they would price like online prices to ensure moving the stock out.
    One would think. But there's also a downside. Too much discounting of the old products on their way out, going way below profit margins, can divert the potential customer base away from the new more expensive product line.
    Indeed, paradoxically it can actually make financial sense to throw the old product out, since, what a lot of people may not realize, the majority of the business costs do not come from the actual manufacturing of the product.

    And sometimes if inventory is moving too slowly, a big business will decide it's not worth the expense of storing it in inventory.

    There's a lot of seeming paradoxes that may be surprising to normal people who are not familiar with how business models actually work.




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